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Tariffs

The New Trade Order: Navigating Tariffs, Sanctions, and Global Shifts

Strategic Insights

— 2 min read

The ongoing trade tensions between the United States and China, as well as other countries, have significantly impacted the global trade landscape. President Trump's tariff regime has introduced new complexities for businesses, requiring expert guidance to mitigate risks. Experts recommend proactive strategies, such as leveraging CTPAT membership, to navigate these challenges.

Key Takeaways:

  • The US-China trade war has resulted in reciprocal tariffs, with the US imposing a 10% tariff on all Chinese imports and China retaliating with a 67% tariff on US exports.
  • The International Emergency Economic Powers Act (IEEPA) has been used to impose tariffs on Canada, Mexico, and China, but a Court of International Trade (CIT) ruling has deemed these actions unconstitutional.
  • The US has initiated a Section 232 investigation into commercial aircraft and jet engines, which may lead to further tariffs and trade restrictions.
  • China dominates the global rare earth minerals market, producing over 70% of the world's supply and controlling over 80% of the processing capacity.
  • The US and UK have agreed to a new economic prosperity deal, which includes alternative arrangements for steel and aluminum, automobiles, and other strategic sectors.
  • Protectionism and free trade are two opposing schools of economic thought, with protectionism advocating for tariffs and trade restrictions to protect domestic industries.
  • The Constitution guarantees various freedoms, but economic freedom is not explicitly mentioned, leaving room for debate on the role of government in the economy.

Statistics:

  • The US has imposed a 10% tariff on all Chinese imports, with the potential for higher rates on dozens of countries.
  • China has retaliated with a 67% tariff on US exports, making it difficult for American businesses to compete in the Chinese market.
  • The International Emergency Economic Powers Act (IEEPA) has been used to impose tariffs on Canada, Mexico, and China, with a potential impact on global trade.
  • China dominates the global rare earth minerals market, producing over 70% of the world's supply and controlling over 80% of the processing capacity.

Sources:

  • CTPAT: An Anchor for Weathering the Trade Storms by Judy Davis, Senior Trade Advisor, Braumiller Consulting Group
  • The New Trade Order: Navigating Tariffs, Sanctions, and Global Shifts, Biden, Joe
  • The Art of the (UK) Deal by Olivia Van Pelt, Law Clerk, and Paul Fudacz, Partner, BLG
  • Tariffs and the Future of U.S. Beef by Brandon French, Senior Associate Attorney, and Olivia Van Pelt, Law Clerk, BLG
  • U.S.-China Trade Relations: An Update on Tariffs by Brandon French, Senior Associate Attorney, and Olivia Van Pelt, Law Clerk, BLG
  • Protectionism or Free Trade? by Mike Smiszek, Senior Trade Advisor, Braumiller Consulting Group

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