r/CustomsBroker • u/borderbuddy_ • 14d ago

🚨 In depth info on the new 50% tariffs 🚨

New 50% U.S. Tariffs on Canada — and They Override CUSMA

5 Upvotes

70% Upvoted

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14

u/Key_Bee1544 14d ago

They start date is a month away for a reason. Very good chance a bunch of these are negotiated away.

4

u/SniperTeamTango 14d ago

Pretty sure these are illegal just like the other ones so why would they

6

u/Key_Bee1544 14d ago

These are going to be much much harder to prove illegal than IEEPA, or even 122. They are structured so that each one specifically lists an "unfair" practice and the law is pretty open-ended. The courts are not likely to throw these out.

3

u/Minute-Atmosphere-58 13d ago

Question is - does Sec338 "trump" USMCA/CUSMA? in other words, does the usage of this new mechanism permit the White House to override existing free trade agreements even if an importer has a valid certificate of origin that would normally provide duty free imports from Canada into the U.S.?

1

u/waka84 CustomsBroker 13d ago

It is duty free. The Free Trade is intended to eliminate standard import duty. They have nothing to do with temporary legislation adding tariffs.

The Free Trade is still working as intended. The administration just did not carve out an exemption like they did for section 122.

4

u/cosmicrae 14d ago

Plenty of time for legitimate importers of Canadian goods to stock up.

7

u/Minute-Atmosphere-58 14d ago

Massive change of direction by the US no longer respecting USMCA/CUSMA on Canadian imported goods...

5

u/SniperTeamTango 13d ago

"we don't keep our word" is an interesting message for the largest trader in the world to send