Reinstated Tariff on Aluminum
Duty Drawback Software | Import Export Consulting | Processing Filing | Full Service
In March of 2018, former President Donald Trump imposed a 25 percent tariff on steel imports and a 10 percent tariff on aluminum imports from a variety of countries, including the United Arab Emirates (UAE). On his final day in office Trump lifted the aluminum tariff. However, that did not last long as on February 1, current President Joe Biden reinstated the 10 percent aluminum tariff on imports from the UAE. As predicted by experts that covered the Biden administration this reinstatement is no surprise.
The reinstatement suggests that it is unlikely that the Biden administration will remove that aluminum tariffs imposed by the Trump administration. In a statement regarding the issue Biden said, “In my view, the available evidence indicates that imports from the UAE may still displace domestic production, and thereby threaten to impair our national security.” Union workers applauded Bidens move saying that Trump’s plan to lift tariffs on imports from the UAE would undermine the effectiveness of the program and essentially exempt the vast majority of aluminum imports. That being said, not everybody is happy with Biden’s reinstatement. Sure, union workers are all for it but manufacturers across the country are left disappointed.
These tariffs have sparked an outcry from downstream American industries that use steel and aluminum to make products like cars, boats, recreational vehicles, and cans. With the new tariff in place, it will increase costs for these manufacturers and narrow their profit margins making it even more difficult for their products to compete on the global market. The reinstated tariff on aluminum is one of Biden’s first big moves as the new president of the United States. What Biden will do going forward regarding imports and exports as a whole is not particularly clear but he has indicated that things will not change all that much. For the latest updates on import and export news stay updated here on our monthly blog.
Biden and U.S. Trade Policy
Duty Drawback Software | Import Export Consulting | Processing Filing | Full Service
With inauguration right around the corner there are expected to be changes in the White House. Some very drastic changes, some very minor. One of the minor changes, at least for now, will be U.S. trade policy. President-elect Joe Biden is expected to take a more measured and multilateral approach to trade policy than President Trump. However, experts say that he is unlikely to make significant short-term changes to the tariffs and other restrictions imposed by President Trump. Though they seem to be each other’s worst enemy and cannot seem to agree on anything during this election season, Republicans and Democrats do agree on the need for the U.S. to take a tougher line on trade with China. President-elect Joe Biden probably will not levy any new tariffs on China but on the other hand he will likely maintain those already in place until a better solution to the problems the tariffs were designed to address become available. President-elect Joe Biden does intend to enlist the help of major trading partners to resolve longstanding trade grievances with China. With that said, the White House is likely to be much more proactive in advancing efforts to secure reforms at the WTO that will enable that body to more effectively address not only China but also various other trade issues. Another big reason why President-elect Joe Biden is not expected to make that many changes to U.S. trade policy is because he is focused on fixing this country. He is focused on domestic policy. He is focusing on his plan for economic recovery. He is focusing on alleviating the pandemic. He is focusing on how to bring America back together. Sure, the U.S. trade policy subject should not be slept on but the priority right now is his country. As mentioned before, with inauguration around the corner many things are going to change. For more information on the latest news regarding tariffs stay tuned here on our monthly blog.
Insurance Types for Your Import Export Business
Duty Drawback Software | Import Export Consulting | Processing Filing | Full Service
To run your import/export business successfully you need to make sure various parts of your business are insured. This includes employees, export credit risk insurance, and cargo insurance. Today we will be breaking down what each of these three types of insurances entail for your import/export business. To begin, you need to care for your employees. Most insurance plans cover illnesses or injuries that your employee might incur on the job. One thing to be aware of is that workers’ compensation insurance laws vary among states so you should check with your insurance agent for details in your area. Another thing to be aware of is that employees that work from home might have different policies. For example, if your employee gets injured in their home office, your homeowners’ insurance may refuse to pay on the grounds that it’s actually a workers’ comp case. You will also need export credit risk insurance. You can purchase several types of export credit risk insurances that are designed specifically for the new exporter and small to mid-sized enterprises. These policies protect you in the event that your foreign buyer decides not to pay you for either commercial or political reasons. Cargo insurance is the last kind of insurance that you will need. The cost of insurance usually runs about 1 percent of the insured value. With cargo insurance you will get peace of mind and, in the event of a cargo misadventure, your insurance coverage should include enough to repay you for not only lost or damaged products but for your extra time and trouble and those lost profits. Choosing to insure your employees, export credit risk, and your cargo is something that all import and export businesses should do. Your business will survive when the unthinkable happens and be able to handle any financial bumps in the road. For more information on import/export businesses stay updated here on our monthly blog.
