Monday, April 20, 2020

Trump Suspends Tariffs Payments for Some Importers

The Trump administration has announced it will allow some companies to delay payment of import tariffs due to economic hardship triggered by COVID-19.

The Treasury Department on Sunday released rule in conjunction with U.S. Customs and Border Protection to allow companies to delay for 90 days the payment of tariffs on certain goods coming into the U.S. in March and April.

U.S. importers seeking a tariff-payment delay must “demonstrate a significant financial hardship” and have operations that are “fully or partially suspended during March or April 2020 due to orders from a competent governmental authority limiting commerce, travel, or group meetings.”

But note well, this does not eliminate the tariff, it only delays the payment of the tariff.

Further, President Trump’s special tariffs on Chinese goods and steel and aluminum imports weren’t included in the tariff-deferral, and other tariffs on so-called dumped and subsidized products also can’t be delayed, according to the temporary rule.

Bottom line: It gives some importers temporary breathing room that will be reversed after the lockdown is over.

In other words, even during a so-called COVID-19 crisis, Trump won't budge on real relief that would help importers and consumers.


1 comment:

  1. If relaxing tariffs provides relief and is a rational policy measure during hard times, then it provides relief and is a rational policy measure during normal times. The laws of economics don't ebb and flow...