More important trade news and updates

There have been additional trade announcements impacting de minimis rules, Brazil, copper imports, S. Korea, and Mexico.

De Minimis:

President Trump signed an Executive Order effectively ending the de minimis exemption for commercial shipments, effective Aug. 29. Thus, “imported goods sent through means other than the international postal network that are valued at or under $800 and that would otherwise qualify for the de minimis exemption will be subject to all applicable duties,” the Executive Order said.

Here are additional details in the Executive Order regarding de minimis:

For goods shipped through the international postal system, packages will instead be assessed duties according to one of the following methodologies:

• Ad valorem duty: A duty equal to the effective tariff rate imposed under the International Emergency Economic Powers Act (IEEPA) that is applicable to the country of origin of the product. This duty shall be assessed on the value of each package.
• Specific duty: A duty ranging from $80 per item to $200 per item, depending on the effective IEEPA tariff rate applicable to the country of origin of the product. The specific duty methodology will be available for six months, after which all applicable shipments must comply with the ad valorem duty methodology. 
• Longstanding exemptions under 19 U.S.C. 1321(a)(2)(A) and (B) remain in place – meaning American travelers can still bring back up to $200 in personal items and individuals can continue to receive bona fide gifts valued at $100 or less duty-free.

Read the entire Executive Order here.

Brazil:

President Trump signed an Executive Order implementing an additional 40% tariff on Brazilian products, bringing the total tariff amount to 50%.

The reason for the tariff increase is due to “recent policies, practices, and actions by the Government of Brazil that constitute an unusual and extraordinary threat to the national security, foreign policy, and economy of the United States.”

Read the White House Fact Sheet here.

In addition, the Office of the U.S. Trade Representative (USTR) on July 15 began an investigation of Brazil under Section 301 of the Trade Act of 1974. The investigation will seek to determine whether acts, policies, and practices of the Government of Brazil related to digital trade and electronic payment services; unfair, preferential tariffs; anti-corruption interference; intellectual property protection; ethanol market access; and illegal deforestation are unreasonable or discriminatory and burden or restrict U.S. commerce.

Copper Imports:

President Trump issued a Proclamation stating that all imports of semi-finished copper products and intensive copper derivative products will be subject to a 50% tariff, effective Aug. 1.

This tariff will be effective with respect to goods entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. ET on Aug. 1 and shall continue in effect, unless such action is expressly reduced, modified, or terminated, according to the Proclamation. 

“This tariff is in addition to any other duties, fees, exactions, and charges applicable to such imported semi-finished copper products and intensive copper derivative products,” the Proclamation said.

The complete White House Proclamation is available here.

S. Korea:

South Korea has struck a trade deal with the U.S. and will be charged a 15% tariff rate on exports in return for duty-free treatment of American goods, President Donald Trump said on Wednesday. S. Korea will also give the United States $350B for Investments and purchase $100 billion worth of American liquefied natural gas or other energy products, Trump said in a social media post.

Mexico:

President Trump announced that trade talks between the U.S. and Mexico will be extended for 90 days, past the original Aug. 1 deadline for a 30% tariff to take effect.

“[W]e are getting to know and understand each other. The complexities of a Deal with Mexico are somewhat different than other Nations because of both the problems, and assets, of the Border. We have agreed to extend, for a 90 Day period, the exact same Deal as we had for the last short period of time, namely, that Mexico will continue to pay a 25% Fentanyl Tariff, 25% Tariff on Cars, and 50% Tariff on Steel, Aluminum, and Copper. Additionally, Mexico has agreed to immediately terminate its Non Tariff Trade Barriers, of which there were many. We will be talking to Mexico over the next 90 Days with the goal of signing a Trade Deal somewhere within the 90 Day period of time, or longer,” President Trump wrote in a social media post.

Transmodal will continue to provide updates as new information becomes available.