What to Expect US Tariffs | Impending Chinese Tariffs | OH IN KY

What to Expect from Impending US Tariffs

Published on by Lauren Huster in Automobile Dealerships, International Business, Manufacturing, Wholesale / Distribution

What to Expect from Impending US Tariffs

Update 2.4.25: China’s Ministry of Finance announced a 15% tariff on certain types of coal and liquified natural gas and a 10% tariff on crude oil, agricultural machinery, certain cars and pickup trucks. The effective date of these tariffs is expected to be Monday, February 10, 2025. In addition, China did file a complaint with the World Trade Organization (WTO) regarding the US tariffs put into place as of Tuesday, February 4, 2025, and launched an antitrust investigation into Google.

Trump has indicated he plans to speak to Chinese President Xi Jinping this week.

Note: This blog was published at and is accurate as of 9:00 AM ET on February 3, 2025. We will continue to monitor news out of Washington and will update this blog as information becomes available.

On February 1, 2025, the White House implemented the following U.S. tariffs under the International Emergency Economic Powers Act (IEEPA):

  • 25% additional tariffs on imports from Canada
  • 10% additional tariffs on imports from China
  • 10% lower tariff on energy resources from Canada

The effective date of these tariffs is expected to be Tuesday, February 4, 2025.

While it was originally announced to have 25% additional tariffs on imports from Mexico and Canada, as of Monday, February 3, 2025, the White House has announced a one-month pause on Mexican tariffs.

On Monday, February 3, Canadian Prime Minister Justin Trudeau and Mexican President Claudia Sheinbaum have agreed with U.S. President Donald Trump to pause planned tariffs for at least one month. 

Impending Canadian tariffs

The Department of Finance Canada also announced retaliatory tariffs to be effective as of February 4, 2025. Canada will be imposing 25% tariffs on $30 billion in goods imported from the U.S. that are considered as originating from the U.S. The Canadian tariffs are said to remain in place until the U.S. eliminates Canadian tariffs.

A full list of items subject to tariffs will be listed by Canada can be found on the Government of Canada’s website here. Some of the major imports affected by this tariff include beer, wine, bourbon, fruits, vegetables, perfumes, clothing, footwear, vehicles (including EVs), steel, aluminum, aerospace, beef, pork, dairy, household appliances, sporting goods, and furniture.

Impending Chinese tariffs

China’s Ministry of Finance announced a 15% tariff on certain types of coal and liquified natural gas and a 10% tariff on crude oil, agricultural machinery, certain cars and pickup trucks. The effective date of these tariffs is expected to be Monday, February 10, 2025. In addition, China did file a complaint with the World Trade Organization (WTO) regarding the US tariffs put into place as of Tuesday, February 4, 2025, and launched an antitrust investigation into Google.

Trump has indicated he plans to speak to Chinese President Xi Jinping this week.

What’s next

Per the National Association of Foreign Trade Zones (NAFTZ), there is a recommendation for U.S. companies to review on-hand foreign trade zone inventory to see if there is an opportunity to have inventory moved to Privileged Foreign Status (PF Status). PF Status allows foreign trade zone inventory to be classified and appraised with duties as the status is elected instead of when shipped out for consumption. This would possibly provide an opportunity to pay lower tariffs rates on such inventory.

Talk to us

If you have questions on the impact of tariffs, the Barnes Dennig team of top international tax pros contact us today. We will continue to publish updates about the upcoming Tariffs. To stay up-to-date subscribe to our newsletter. As always, we’re here to help.

 


Categories

Related Industries

More Insights

Apply Now