The Lead Story
Tariff Tsunami: Washington Goes Double-Or-Nothing
The trade winds just turned into a hurricane. On 1 August, President Donald Trump unveiled a 35% tariff on all Canadian imports and followed up with a 50% duty on semifinished copper products set to bite this Friday, BBC and Law360 report.
Why now? The White House argues the levies will “boost American manufacturing and protect jobs,” while shrinking the yawning U.S. trade deficit. Critics counter that the policy “has thrown the world economy into chaos,” BBC notes, and a pending U.S. trade-court case questions whether the president even has the authority to act under national-emergency powers.
For importers, the fine print stings. The copper measure spares raw ore but hits semifinished and derivative products—and a domestic-sales quota kicks in come 2027, according to Law360. Canadian exporters, meanwhile, face blanket exposure beginning today.
The reaction was swift: U.S. manufacturers warn of higher input costs, while trade partners hint at retaliation. Tax pros are bracing for a summer of recalculating landed costs, revising transfer-pricing models, and—yes—explaining fresh line items on the customs duty schedule.
Around the Tax World
• CJEU nixes Spanish goodwill claw-back. In a blockbuster ruling, the EU’s top court annulled the European Commission’s finding that Spain’s goodwill amortization for indirect foreign share purchases was illegal State aid (KPMG).
• Belgium kicks UTPR to Luxembourg judges. Belgium’s Constitutional Court has asked the CJEU to decide whether the undertaxed-profits rule (UTPR) meshes with EU law (KPMG).
• Denmark’s EET precedent upends 15 years of TP practice. Relying on OECD guidance, Denmark’s Supreme Court sided with the tax authority in Denmark v. EET Group, shredding long-standing administrative comfort, experts told International Tax Review.
• DAC9 dominoes fall. The EU published its crypto-asset reporting rules (DAC9); Denmark and Sweden launched consultations, while Czechia’s Senate signed off on minimum-tax amendments (KPMG).
• Africa deepens anti-avoidance net. Zimbabwe became the 151st signatory to the OECD’s Multilateral Convention, and Madagascar deposited its ratification instrument (The Zimbabwean).
By the Numbers
“Half Off”? Not Quite — 50% is the new U.S. tariff rate on semifinished copper products, kicking in 2 August (Law360).
Looking Ahead
All eyes now turn to the CJEU’s upcoming hearings on Belgium’s UTPR referral and to whether the U.S. trade court will curtail the president’s tariff-setting powers. Buckle up.
Prepared by MyTax - mytax.com.ng