U.S. Suspends Tariffs for Some Importers Affected by Coronavirus - The Wall Street Journal

The plan would delay the payment of tariffs for goods that are imported into the... — The plan would delay the payment of tariffs for goods that are imported into the U.S. through ports such as this one in Elizabeth, N.J.
Photo: mike segar/Reuters

William Mauldin

The Wall Street Journal

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@willmauldin
William Mauldin

Updated April 19, 2020 10:54 pm ET

The Trump administration said it would allow some companies to delay payment of import tariffs due to economic hardship triggered by the new coronavirus, but the relief was much more limited than many officials and business leaders had signaled.

The Treasury Department on Sunday announced a rule in conjunction with U.S. Customs and Border Protection to allow companies to delay for 90 days the payment of tariffs on certain goods coming into the U.S. in March and April.

U.S. importers seeking a tariff-payment delay must “demonstrate a significant financial hardship” and have operations that are “fully or partially suspended during March or April 2020 due to orders from a competent governmental authority limiting commerce, travel, or group meetings.”

The measure fell short of the across-the-board tariff deferral or even elimination sought by big business groups and retailers.

President Trump’s special tariffs on Chinese goods and steel and aluminum imports weren’t included in the tariff-deferral offering, and other punitive tariffs on dumped and subsidized products also can’t be delayed, according to the temporary rule.

Acting Secretary of Homeland Security Chad Wolf, left, says the decision is a step toward... — Acting Secretary of Homeland Security Chad Wolf, left, says the decision is a step toward helping “the trade community.”
Photo: Alex Brandon/Associated Press

Chad Wolf, acting homeland security secretary, said the decision “gives the Administration the ability to help the trade community and U.S. businesses who keep critical supply chains for U.S. manufacturers moving during this unprecedented time.”

The latest plan to delay for 90 days the payment of tariffs—essentially taxes at the border paid by U.S. importers—follows previous moves to delay corporate income-tax payments during what is expected to be a sharp economic downturn.

Rep. Kevin Brady of Texas, the top Republican on the House committee that oversees trade, said the new tariff measure “will free up much-needed cash, allowing these businesses to pay these duties when they, as well as the economy, are on sounder footing.”

The tariff issue rekindled a sensitive debate in an election year, with the steel industry, trade hawks and lawmakers who support domestic industries rejecting earlier proposals to delay payments.

Backers of tariffs and Mr. Trump’s “America first” trade policy have emphasized that any payment delays don’t amount to forgiveness of duties on imported goods.

The divide between products—with some eligible for delays while others aren’t—is likely to generate complaints from industry and could sow confusion.

Many goods are subject both to ordinary tariffs allowed under international agreements and special tariffs stemming from Mr. Trump’s trade war with Beijing or other punitive duties.

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U.S. Suspends Tariffs for Some Importers Affected by Coronavirus - The Wall Street Journal

The plan would delay the payment of tariffs for goods that are imported into the U.S. through ports such as this one in Elizabeth, N.J.

Acting Secretary of Homeland Security Chad Wolf, left, says the decision is a step toward helping “the trade community.”

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U.S. Suspends Tariffs for Some Importers Affected by Coronavirus - The Wall Street Journal

The plan would delay the payment of tariffs for goods that are imported into the U.S. through ports such as this one in Elizabeth, N.J.

Acting Secretary of Homeland Security Chad Wolf, left, says the decision is a step toward helping “the trade community.”

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