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News / 2019

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May 2019 Logistics Link

During the month of May 2019, MIQ was involved in a number of events throughout the logistics industry. Read industry updates, regulatory updates, and services offered by MIQ, in the May 2019 logistics link.

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MIQ Supply Chain Logistics

New Tariffs on All Imports from Mexico

On May 30, 2019, in an effort to further address illegal immigration from Mexico, the White House announced  that a 5 percent tariff will be imposed on goods from Mexico effective June 10, 2019. This action is being taken under the International Emergency Economic Powers Act of 1977. Per the announcement, the tariffs will be increased pursuant to the following schedule if Mexico does not take sufficient steps to stop illegal immigration:

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MIQ Supply Chain Logistics

Port of Vancouver, Canada Labor Situation

The International Longshore and Warehouse Union (ILWU) Canada posted on Sunday, May 26, 2019, they would take limited and targeted job action on Monday morning, May 27, 2019, at the Global Container Terminals, GCT Deltaport (Delta) and GCT Vanterm (Vancouver). The ILWU did not move forward with a full-scale strike, however, an overtime ban at the GCT Deltaport and GCT Vanterm was initiated. The ILWU Canada President, Rob Ashton, advised all ports would remain open and no picket lines would go up as contract talks continue. Please refer to the ILWU press release: https://ilwu.ca/ilwu-canada-press-release-may-26-2019/.

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MIQ Supply Chain Logistics

Turkey Updates: Removed from GSP and Tariffs Reduced on Steel

On Thursday, May 16, 2019, the President of the United States signed two proclamations that impact trade with Turkey.

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MIQ Supply Chain Logistics

Section 232 Automobiles and Auto Parts Tariff Decision Delayed 180 Days

On May 17, 2019, the President of the United States issued a proclamation directing the United States Trade Representative (USTR) to pursue negotiations with the European Union, Japan and any other country the Trade Representative deems appropriate in order to address the threat to U.S. national security identified by the U.S. Department of Commerce (DOC) Secretary. A decision to impose new tariffs on imports of automobiles and auto parts will be delayed for 180 days while the USTR pursues these negotiations.

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MIQ Supply Chain Logistics

United States, Canada and Mexico Eliminate Steel and Aluminum Tariffs

On Friday, May 17, 2019, the United States announced the elimination of all steel and aluminum tariffs against Canada and Mexico, effective May 20,  2019. In joint statements with the United States, Canada and Mexico also agreed to eliminate all retaliatory tariffs against the U.S.

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MIQ Supply Chain Logistics

Increased Customs Bond Amounts

Importers are experiencing large increases in their annual customs bond amounts due to the sanctions that have been implemented on their products. Generally, bond amounts are calculated at 10% of the total amount of duty, taxes and fees paid in the previous 12 months OR calculated based on duties estimated for the next 12 months. Many of the bonds that traditionally fell below the minimum $50K amount have now more than doubled. Increased anti-dumping (AD) and countervailing duties (CVD) add an additional layer of complexity to these bond amounts and extend the time frames that entries remain open.

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MIQ Supply Chain Logistics

China Tariffs: USTR Releases Fourth Set of Exclusions

On Thursday, May 9, 2019, the United States Trade Representative (USTR) released a fourth Notice of Product Exclusions to Section 301 List 1 products currently subject to a 25 percent tariff.

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MIQ Supply Chain Logistics

China Tariffs: USTR Proposes Additional Import Tariffs on Products from China

On Monday, May 13, 2019, the United States Trade Representative (USTR) released a new proposed list of products that could be subject to an additional 25 percent tariff.

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NRG Import Graph

Retail Imports Rising Ahead of Expected Higher Tariffs

Source: National Retail Federation May 9, 2019

With retail sales rising and President Trump saying he plans to both increase and broaden tariffs on goods from China, imports at the nation’s major retail container ports are expected to see unusually high levels the remainder of this spring and through the summer, according to the monthly Global Port Tracker report released today by the National Retail Federation and Hackett Associates.

“Much of this is driven by consumer demand but retailers are likely to resume stocking up merchandise before new tariffs can take effect,” NRF Vice President for Supply Chain and Customs Policy Jonathan Gold said. “Tariff increases and new tariffs will mean higher costs for U.S. businesses, higher prices for American consumers and lost jobs for many American workers. We encourage the administration to stay focused on a trade agreement, and we hope the negotiations will get back on track. It would be unfortunate to undermine the progress that has been made with more tit-for-tat tariffs that only punish Americans.”

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