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Showing posts with the label Global Trade

Mexico Imposing A 50% Tariff

The international shipping industry continues to feel the strain from trade wars, with Mexico imposing a 50% tariff. On December 10, Mexico’s congress agreed to hike tariffs on more than 1,400 imports from China and other Asian nations. Some of the goods subject to tax include automotive parts, steel, furniture, textiles, and plastics. Tariffs on most of these items, previously at 10%, will increase to 35%. Key manufactured goods, such as vehicles, will also see a larger 50% increase. After 75 votes in favor, five against, and 35 abstentions, the new bill will take place on January 1. These tariffs could significantly affect global trade, particularly the volume of goods imported into Mexico. Why Is Mexico Imposing A 50% Tariff? Mexico is imposing tariffs of up to 50% on imports for various reasons, including protecting domestic industries. The country aims to reduce its dependence on imports from countries without free trade agreements. Many of these importers are based in Asian c...

US Extending China’s Tariff Pause

  An executive order signed by President Trump on August 11 has the US extending China’s tariff pause. Originally set to start this week, the higher tariffs for imports from each country will begin on November 10. The US will keep its levies on Chinese goods at 30% while China will keep its 10%. Both countries have been in a trade war since 2018, during Trump’s first presidency. The trade war escalated significantly over the last few months during his second presidency after Trump imposed more tariffs. After several back-and-forth levies, the total amount for Chinese imports reached 145% while China reached 125% on US imports. This article will explain the goal behind the extension and how it could impact your shipment. Why Did the US Extend the Deadline? Extending the deadline is to act as a breather, giving both countries a temporary ceasefire.  On May 12, both countries entered a similar agreement to pause tariffs that would reach triple digits . The current extension provi...