Trump may announce import levy break to help beleaguered businesses

Imports and Exports | | MIC Customs Solutions |

Speculation is rising that Donald Trump may have to bring in more trade measures to battle COVID-19.

It has been speculated that US president Donald Trump is set to announce a three-month import levy break to lend a helping hand to companies whose finances are being battered by coronavirus.

According to Bloomberg, he will announce the 90-day deferral on tariffs for most-favoured nation (MFN) duties soon.

MFN tariffs are the highest rates countries agree to impose on other World Trade Organisation members and apply to products including clothing and textiles.

The news comes after more than 400 chief executives from US household name companies including Macy's and Adidas wrote to Mr Trump asking him to stop collecting import duties amid the coronavirus pandemic.

Should new regulations be announced, businesses would still need to pay the levies at a later date and there would be no formal change to long-term tariff policy.

The US is being hit especially hard by the pandemic, with more than 245,000 people infected and in excess of 6,000 dead. New York, one of the business hubs of America, is seeing the highest rate of infection.