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Tariffs and counter tariffs impact global trade

     Global Network

A worldwide trade war is just days away as the U.S. and its major trading partners impose – or threaten – ever widening tariffs.

Canada and China are both set to impose additional tariffs against the U.S., while the U.S. is promising to implement $100 billion worth of additional tariffs against products from China.  The EU implemented their tariffs against the U.S. on June 22.

Tariffs impede global trade by making goods more expensive.  But it appears the U.S. is committed to forcing the hand of its greatest allies and competition alike, in an effort to either strengthen American manufacturing or negotiate better trade deals.

Here is a breakdown of the new tariffs by country/region:


The Canadian government is imposing tariffs against select

U.S. made goods

at either 25% (Table 1) or 10% (Table 2), effective July 1 (Canada Day).  They will apply to $12.8 billion worth of products, ranging from raw steel to chocolate, produced in pro Trump states.  Canada says the tariffs are necessary to counter balance the impact of tariffs applied by the U.S. June 1 on Canadian-made

Steel and




The European Commission in Brussels has approved a 25% duty on 2.8 billion euros (US$3.2 billion) of U.S. made products the EU imports, including Harley-Davidson Inc. motorcycles, Levi Strauss & Co. jeans and bourbon whiskey.  A separate 10% levy is being applied to U.S. playing cards imported into the bloc.  The impact was almost immediate as Harley Davidson has already


it is moving some manufacturing out of the U.S. to avoid the new tariffs applied by the EU.



In direct response to U.S. tariffs on Chinese products, China’s Ministry of Commerce has announced it will impose, effective July 6, a 25% tariff on U.S. products with a total value of US$34 billion.  The targeted products include auto and dairy products. 

Additional tariffs

on oil, chemical and medical equipment, totaling US$16 billion, could follow, but the date of implementation has not been announced.  U.S. exports $1 billion worth of crude oil to China monthly.



After hearing about the Chinese tariffs on U.S. products, President Trump promised to implement in July retaliatory tariffs on

China products, with an additional

list of products

to undergo public comment, having a total value of $50 billion.  The proposed tariffs have already been countered and re-countered and the U.S. is now threatening an additional $200 billion in tariffs if China does not back down.

U.S. President Trump says he is imposing tariffs to correct unfair trade practices and protect U.S. jobs.  Critics say his actions will lead to the opposite: the loss of U.S. jobs, particularly in states that make products subject to counter tariffs.

More developments are likely as we get closer to the date when pending tariffs are enacted.

For more information, contact Brian Rowe, Director – Customs Compliance & Regulatory Affairs.

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