Aren't 25% tariffs illegal under NAFTA and the USMCA?

 Aren't 25% tariffs illegal under NAFTA and the USMCA?  

The Canada-United States-Mexico Agreement (CUSMA) is a trade agreement that eliminated most tariffs on goods traded between the three countries. However, there are still some tariffs in place, and it is possible that new tariffs could be imposed in the future. If a tariff is imposed that is not allowed under CUSMA, it would be considered an illegal tariff.

There are a few ways that a tariff could be considered illegal under CUSMA. For example, a tariff could be illegal if it is higher than the rate allowed under the agreement. A tariff could also be illegal if it is applied to a good that is not subject to tariffs under the agreement.

If a country imposes an illegal tariff, the other countries affected by the tariff can take action to challenge it. This could involve filing a complaint with the CUSMA dispute settlement mechanism. If the dispute settlement panel rules that the tariff is illegal, the country that imposed the tariff would be required to remove it.

In addition to the CUSMA dispute settlement mechanism, there are other ways to challenge an illegal tariff. For example, a company that is harmed by an illegal tariff could file a lawsuit in its own country.

The penalties for imposing an illegal tariff can vary depending on the circumstances. In some cases, the penalty could be a fine. In other cases, the penalty could be a requirement to remove the tariff.

It is important to note that the information provided here is general in nature. The specific penalties for imposing an illegal tariff could vary depending on the specific facts of the case.

/////////////////////////////////////////////////

The North American Free Trade Agreement (NAFTA) eliminated tariffs on most goods traded between the United States, Canada, and Mexico. NAFTA also removed other trade barriers, such as investment restrictions. 

Explanation

NAFTA was signed in 1992 and took effect in 1994. 

The agreement established a free-trade zone in North America. 

NAFTA eliminated tariffs on agricultural and manufactured goods, as well as services. 

NAFTA also removed investment restrictions and protected intellectual property rights. 

NAFTA included side agreements to address environmental and labor concerns. 

NAFTA was replaced by the Canada-United States-Mexico Agreement (CUSMA) in 2018. CUSMA maintained the tariff-free market access from NAFTA. 

This research is provided by Warren A. Lyon at SDGCK, using information sourced from online resources.