US to allow deferral of some tariff payments to help cash-strapped businesses

Importers will not have to pay interest during the postponement period

Treasury Secretary Steven Mnuchin says US will allow deferral of certain tariffs for 90 days. AFP 

The US will allow importers and manufacturers to defer payments on many imported goods for 90 days, a move aimed at freeing up cash for pandemic-hit businesses that is limited in scope in that it doesn’t stem ongoing punitive measures that are a centrepiece of President Donald Trump’s trade strategy.

“This will protect American jobs and help these businesses get through this time,” Treasury Secretary Steven Mnuchin said in a statement.

The deferral doesn’t apply to anti-dumping or countervailing duties, or so-called Section 201, Section 232 or Section 301 duties.

As such, it won’t ease Mr Trump’s duties on China, steel and aluminum, or enforcement actions he took including against Airbus.

Under the plan, the Treasury Department and Customs and Border Protection will allow payments to be postponed for three months. Importers won’t have to pay interest during this period.