Washington shelves border tax plan

John G Smith

WASHINGTON, DC – The U.S. government has shelved proposals for a border tax that would have been tacked on imports.

“While we have debated the pro-growth benefits of border adjustability, we appreciate that there are many unknowns associated with it and have decided to set this policy aside in order to advance tax reform,” the White House, Senate and House leaders said in a joint statement on Thursday.

Unveiled last year, the border adjustment proposal was expected to be a significant tool for raising revenue. But it also could have dramatically affected the supply chain for truck parts.

Trump administration officials at one time had floated the idea of adding tariffs of up to 20% on goods that came from Mexico alone. Daimler, Navistar and Paccar all produce trucks in that country, while Hyundai builds trailers there and Meritor has a plant near Monterrey. Bendix Commercial Vehicle systems has expanded production capacity in Acuna.

China, also identified as a potential target, is the source of individual truck components from tires and wheels to lighting.

 

John G Smith

John G. Smith is the editorial director of Newcom Media's trucking and supply chain publications -- including Today's Trucking, trucknews.com, TruckTech, Transport Routier, Inside Logistics, Solid Waste & Recycling, and Road Today. The award-winning journalist has covered the trucking industry since 1995.

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