Resources

Over the past three months, tariffs have dominated headlines, with the most significant tariffs being revealed on April 2. Earlier in the year, the U.S. had already imposed new tariffs on goods from Canada and Mexico that do not qualify for duty-free treatment under the U.S.-Mexico-Canada agreement. The U.S. has also increased tariffs on Chinese goods as well as imposing tariffs on steel and aluminum imports. In response, several U.S. trading partners have imposed tariffs on U.S. exports, including the European Union, Canada, and China. Outside of tariffs, the U.S. met with India to discuss trade relations, and the U.S. exited the Americas Partnership for Economic Prosperity agreement.

This guide outlines several strategies for businesses to manage and mitigate the impact of increased tariffs on imported goods. The guide covers three main approaches: avoiding tariffs, mitigating tariffs, and recovering paid tariffs.

U.S. negotiators wrapped up the year by finalizing several new memorandums of understanding, one on improving two-way trade with Montenegro and one on critical minerals with India. The U.S. also discussed labor standards with several allies, including the EU and Kenya. Other negotiations included meetings with representatives from the UAE, the Caribbean nations, and Taiwan to discuss customs and investment matters.

The United States continues to focus on de-coupling from China, most recently by imposing new tariffs on Chinese goods, including a 100% tariff on electric vehicles. At the same time, the U.S. is continuing to have trade negotiations with a number of countries, including Japan, the Philippines, South Korea, the Maldives, Sri Lanka, Argentina, and Kenya. Several plurilateral agreements, such as the Indo-Pacific Economic Framework and Americas Partnership for Economic Prosperity, are slowly making progress as well.

The United States is continuing negotiations with a number of countries to tighten compliance around sanctions and export controls, with recent negotiations involving the United Kingdom and France. In addition, the White House has looked to ensure the viability of the critical minerals supply chain, holding discussions with Norway, Kazakhstan, and the Philippines over the last three months. U.S. trade negotiators have also been active in several Africa nations, making progress on a trade agreement with Kenya and seeking public comments on the African Growth and Opportunity Act (AGOA).

So far in 2024, the United States has had several discussions around critical minerals, supply chains, and tariffs. USTR has stated that it is currently negotiating critical mineral agreements with the United Kingdom and the European Union while the Department of State hosted the inaugural meeting on critical minerals with Central Asian countries. In addition, the U.S. has had conversations with the EU and separately with Japan on the importance of diversifying and strengthening their supply chains, and the Indo-Pacific Economic Framework for Prosperity agreement relating to supply chain resilience also recently entered into force. The U.S. has continued its trade discussions with Kenya while the U.S. and Mexico exchanged threats on reinstating tariffs on steel and aluminum.