Spotlight on Tariffs and Trade Actions
Q3 2024 Market Update
SUMMARY: Trade actions likely to drive cost upward for certain products manufactured for foodservice
A tariff is a tax imposed by one country on goods and services imported from another country. Tariffs may result in increased prices for domestic consumers, which in turn may make imported goods less appealing relative to domestically produced goods. Historically, governments have relied on tariffs to protect or promote domestic industries from foreign competition while also raising government revenue. (Masterclass) Anti-dumping duties are taxes imposed on imported goods when a government believes they are priced below fair market value and could harm domestic producers. The goal of these duties is to raise the price of the imported goods back to fair market value. (Investopedia)
On May 14, the White House announced that following an in-depth review by the United States Trade Representatives, President Biden was taking action to protect American workers and companies from China’s unfair trade practices. (whitehouse.gov)
As a result, the US Trade Representative will allow exclusions to Section 301 tariffs to expire, reverting the tariff on these goods to 25%, effective 06/15/2024 (ustr.gov)
Further, Section 301 tariffs on aluminum foil rolls manufactured in China will increase from 7% to 25%, effective 08/01/2024. (ustr.gov)
Additionally, exclusions to Section 232 tariffs of 10% placed on aluminum foil rolls for national security reasons will be removed effective 07/01/2024, regardless of the product’s countr y of origin. (ustr.gov)
Anti-Dumping Duties investigations on aluminum foil pans made in China is underway, prompted by a petition filed by the Aluminum Foil Container Manufacturers Association. The US Department of Commerce is scheduled to deliver a preliminary antidumping determination on 10/23/2024, and final determination on 01/06/2025 and the US International Trade Commission following a similar timeline. The outcomes of these investigations will influence market prices and availability potentially as early as the second half of 2024.
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