With little publicity, the EU Commission is imposing extra taxes of up to 25% on goods imported into the EU from the US with effect from 1 July 2018. The taxes are in response to Donald Trump’s decision to impose duties on European aluminium and steel.
This will affect businesses in Exeter that import goods from the US.
There is an extensive list of items that are caught by the new tax. The full list is here: https://tinyurl.com/y9anfddw.
The list goes from sweetcorn and cranberries, jeans through steel and aluminium to yachts and speed boats.
Further taxes could be imposed by the EU in years to come if the situation between the trading bloc and the US deteriorates further.
The UK government has suggested that the UK might be given an exemption from the US tariffs once we leave the EU, though this is far from clear.
Businesses affected by the new tariffs will face a dilemma of whether to absorb the costs or pass them on to customers. They could also look to use suppliers from outside the US, where this is contractually and commercially viable.
If you would like to discuss how these taxes will affect your business, please contact Bishop Fleming’s VAT Director, Wendy Andrews on 01392 448800 or email: [email protected]