Nations/Blocs
- China: Starting November 1st, the President said China’s tariff rate will rise 100% “over and above any Tariff that they are currently paying.”
- This is in response to China playing hardball with rare earth mineral exports.
- Later the President said “don’t worry, it will all be fine!“
- China then said they’ll “fight to the end.“
- For context, the current average US tariffs on Chinese exports stands at 57.6 percent.
- India: Their tariff rate is still stuck at 50% (25% reciprocal + 25% for buying Russian oil.)
- Switzerland: They’re also still stuck, with their rate at 39%. That’s causing some unpleasantness in the watch industry.
Shipping & Who’s Paying
- UPS may start trashing stranded imported packages which can’t clear customs, citing the frequently changing rules/complexities of the regulations/paperwork mess.
- If they can’t get the paperwork sorted out, they’ll try to send it back on the shipper’s dime. If the shipper doesn’t respond (UPS says they try three times, yet some customers say they heard nothing,) then destroying the parcel is compliant with US Customs Law.
- U.S. Consumers are paying up to 55% of tariff costs. That’s an estimate/analysis by Goldman Sachs.
- Like charts? Give the Reuters piece “How the United States is eating Trump’s tariffs” a look.
Legal/Executive Orders/etc.
- The Supreme Court will start hearing oral arguments on November 5th to determine the legality of the wide-sweeping so called Reciprocal and Trafficking Tariffs, both implemented under the IEEPA law. – SCOTUSBlog
- Experts see an up to 80% chance the Supreme Court strikes the tariffs down – Fortune
- Meanwhile, the Administration has started using other laws to implement new tariffs. For example, the brand new tariffs on foreign produced lumber, upholstered furniture, kitchen cabinets, and bathroom vanities have been enacted using something called Section 232, which is a statute meant to protect U.S. National Security.
Worth a watch:
(Very top image: by Maksym Tymchyk on Unsplash)