Trade & Tariff Update #26 - USMCA Negotiations, Metal Tariffs & More

Canada and the United States Engage in Posturing Ahead of the USMCA Negotiations 

Although much attention remains on the deployment of the tariff refund Consolidate Administration and Processing of Entries (CAPE) System, activity continues on the broader trade front.  In preparation for upcoming negotiations to renew the United States-Canada-Mexico (USMCA) trade agreement, Canadian Prime Minister Andrew Carney is drawing a redline against the United States dictating terms.  Canada also stated that it is looking for “some mutuality” from the Administration in light of concessions made to the United States during the tariff disputes.  Similarly, U.S. Trade Representative Jameison Greer called for the removal of Canada’s retaliatory duties on alcohol imports in response to last year’s tariffs, and threatened “enforcement action” against the boycott of American alcohol by many Canadian provinces.   

Praise for Companies Not Yet Seeking Tariff Refunds   

Meanwhile, President Trump offered praise for companies that have, so far, refrained from seeking IEEPA refunds.  Although this might raise the specter of scrutiny and potential retaliation against companies that do seek refunds, the sense is that this is a function of companies like Apple and Amazon seeking to curry favor with the Administration rather than a threat to mid and small size companies seeking refunds. 

Efforts Regarding Metal Tariffs, the UK and More   

In other areas, the Administration’s trade policy continues to vacillate.  While the Department of Commerce announced efforts to mitigate steel and aluminum duties for companies that commit to increasing U.S. domestic production, President Trump also threatened the United Kingdom with additional tariffs if it does not eliminate digital services taxes (notwithstanding the trade agreement brokered between the two countries last May). 

With all the above as a backdrop, the Administration continues to pursue Section 301 investigations with the goal of establishing an alternative tariff regime to replace the IEEPA framework and Section 122 duties by their July expiration. 

Disclaimer: APPA does not make any representations about the completeness, suitability, or adequacy of the information provided during the Office Hours or Trade Talks.   Any information provided are intended for general informational purposes only, they do not constitute a recommendation or solicitation to do or omit to do any action and should not be interpreted as legal, regulatory, or compliance advice. You should seek independent advice from qualified professionals before acting on any information provided and/or to evaluate specific regulatory obligations and operational decisions.
Disclaimer from Progressive Trade Consulting: PTC is not a law firm, does not practice law, and does not provide legal advice. The Client should consult legal counsel for any legal matters, including trade compliance. The Importer of Record (IOR) is responsible for complying with customs regulations and managing the import process. This includes obtaining required licenses and permits, classifying and valuing goods correctly, declaring goods accurately, paying duties and taxes, following import rules, and maintaining proper records.