TradeLane

Since the end of the Biden Administration, the direction of the Trump Administration’s Department of Commerce and Bureau of Industry and Security (BIS) has been slowly materializing, giving us a glimpse of what U.S. export controls will look like for the next four years.

In a significant development for the automotive industry, the U.S. government announced on April 29^th a relief mechanism for automakers facing 25% Section 232 tariffs on non-USMCA qualifying imported parts that became effective May 3rd. This policy supports manufacturers who assemble vehicles in the United States and offers hope in these difficult times while promoting transparency and future production commitments.

In recent updates on the Section 232 tariffs on Aluminum and Steel, the President has clarified “tariff stacking” and its implications for importers. This executive order aims to prevent unintended burdens as a result of the tariffs while safeguarding national security interests. 

The United States – Mexico- Canada Agreement (USMCA), known in Canada as Canada – US – Mexico agreement (CUSMA), establishes a framework for duty-free trade among the three nations, provided goods meet specific rules of origin.  Recent developments have underscored the importance of ensuring goods qualify under CUSMA to avoid newly imposed tariffs. 

If you are a business engaged in international trade, you may have a valuable opportunity to reduce costs through a program known as Duty Drawback. This program allows your business to recover the duties, taxes, and fees paid on imported goods that are subsequently exported or destroyed.

Although the recovery process can be complex, the potential savings can be significant. Continue reading to explore the basics of the program, who is eligible, and how Tradewin can assist you.