Update on Recent Tariff News: Autos, Venezuela, Section 301 Exemption Focus – 06

We wanted to bring you an update on the very fluid situation on tariffs. 

• Venezuelan Oil Purchasers – 25% Tariff on Goods From Those Countries
  • This could significantly increase tariffs on products from China since China is the largest importer of Venezuelan crude oil
  • Venezuela also exports oil to Cuba, the Dominican Republic, India, Malaysia, Russia, Singapore, Spain, and Vietnam – products from these countries could also be affected
  • President Trump did state the possibility of some exemptions but there’s no further info at this time
    
• Heightened Attention to Shipments Claiming Section 301 Tariff Exemptions
  • We’ve seen an increase in CBP requesting additional product details and literature from importers bringing in goods and claiming Section 301 tariff exemptions.  The CBP requests were almost identical in nature leading us to believe there is an increased focus on these types of shipments.  Something to be aware of for any Section 301 Tariff Exemptions you may be claiming
    
• 25% Tariff on Automotive Industry
  • President Trump will implement a 25% tariff on all foreign-built passenger vehicles and light trucks as of April 2nd
  • Engines, transmissions, powertrain parts, and electrical components are also subject to the tariff
  • The administration has said importers of vehicles and parts under the United States-Mexico-Canada Agreement (USMCA) will be given the opportunity to certify US content and systems so that the 25% tariff will only apply to the value of their non-U.S. content. USMCA-compliant auto parts will remain tariff-free for now

We are expecting some significant tariff updates this week as President Trump communicates reciprocal tariffs that we believe will target countries that have trade deficits with the USA.  This situation is very fluid but we will continue to monitor and bring you updates as we have them.

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