President Trump posts roadmap for new tariffs

Among the numerous executive orders President Trump published last night was the “America First Trade Policy.” It laid out how he will impose new tariffs globally, possibly starting with 25% tariffs against Mexico and Canada on Feb. 1. This trade policy executive order initiated consideration of which authorities Trump should employ to increase tariffs on a wide variety of imported goods. The authorities teed up include the well-publicized International Emergency Economic Powers Act (IEEPA), which could impose new tariffs immediately, and increases in the Section 301 tariffs against China his last administration imposed. The executive order could also serve as a textbook on new tariff authorities as it cited numerous other laws the administration could use immediately to increase tariffs and even prohibit imports of a wide range of goods.

The main question left open yesterday is when new tariffs or import prohibitions will happen and how companies can respond. The trade executive order instructs federal agencies to prepare President Trump to execute by April 1, but the president’s interview last night showed faster action might be likely. The president put everyone on notice that the new 25% tariffs against imports from Mexico and Canada could come as soon as Feb. 1.

Companies whose goods advance the national interests President Trump prioritizes should prepare themselves to request waivers of new tariffs. This requires an assessment of the good’s application, supply chains, availability, job creation and other factors as well as the stakeholders who would have an interest supporting or opposing particular tariff waiver requests.

Key takeaways

Being prepared to make your case immediately could help avoid delays the administration may experience due to the volume of tariff waiver requests.

For more information, please contact Corey Norton or any member of Porter Wright's International Business & Trade group.