Trump Delays Tariffs on Canadian Imports

-Editorial 

President Donald Trump has delayed the effective date of additional tariffs on certain Canadian imports, pushing the start of the duties from Aug. 19 to Aug. 22 as the United States and Canada continue negotiations over trade measures involving alcoholic beverages, dairy products and motor vehicles.

Trump signed the proclamation Aug. 18, saying the three-day suspension was in the public interest because of the status of ongoing negotiations between the two countries.

The additional duties were established in three presidential proclamations issued July 20. The measures targeted certain Canadian imports in response to what the administration described as discriminatory or unreasonable Canadian trade practices affecting U.S. commerce.

One proclamation addressed Canadian policies involving U.S. alcoholic beverages. The administration said Canada was restricting the purchase, distribution, or retail sale of U.S. alcoholic beverages while not imposing similar restrictions on products from other countries.

A second proclamation concerned Canada’s tariff-rate quota allocation measures affecting U.S. cheeses. The administration characterized those measures as discriminatory against U.S. dairy products.

The third proclamation addressed Canada’s motor vehicle tariff system, which the administration said placed U.S. automobile and auto parts exports at a disadvantage compared with trade from other countries.

The July proclamations imposed additional ad valorem duties under Section 338 of the Tariff Act of 1930. The duties were scheduled to take effect at 12:01 a.m. Eastern Time Aug. 19.

The new proclamation changes that date to 12:01 a.m. Eastern Time Aug. 22.

According to the Aug. 18 proclamation, Trump received information, opinions, and recommendations from senior members of the executive branch regarding the status of the trade disputes and negotiations with Canada. The proclamation states that Canada has expressed a commitment to removing the discriminatory or unequal measures cited in the earlier proclamations.

The administration determined that the status of the negotiations supported a temporary suspension of the additional duties.

The proclamation directs federal agencies to take steps to implement the delay and, as required, suspend collection of the additional duties during the three days.

The U.S. Customs and Border Protection commissioner is also directed to consult with the Treasury and Commerce departments, the Office of the U.S. Trade Representative, the U.S. International Trade Commission, and other members of the executive branch to determine whether additional changes to the Harmonized Tariff Schedule of the United States are needed.

Any changes to the tariff schedule will be made through notice in the Federal Register, according to the proclamation.

The order also addresses potential refunds for duties that may have been collected. It states that refunds required as a result of the proclamation will be processed under applicable law and standard Customs and Border Protection procedures.

The administration based the action in part on Section 338 of the Tariff Act of 1930, which gives the President authority to impose additional duties to address certain foreign trade practices that discriminate against U.S. commerce or place U.S. commerce at a disadvantage.

The law also allows the President to suspend, revoke, supplement, or amend proclamations issued under the provision when the President determines that the public interest requires such action.

The proclamation states that any provisions of earlier proclamations or executive orders that conflict with the new action are superseded to the extent of the conflict.

The three-day delay gives the United States and Canada additional time to continue negotiations before the additional duties are scheduled to take effect.

If no further changes are made, the duties covered by the three July 20 proclamations are scheduled to become effective at 12:01 a.m. Eastern time Aug. 22.