Executive summary

This edition of Trade Talking Points provides updates on trade policy developments, including the European Commission setting out the evidential requirements for "melt and pour" origin reporting under the European Union (EU) Steel Regulation, Vietnam and MERCOSUR¹ commencing negotiations for a Preferential Trade Agreement, and Switzerland and China concluding negotiations for an enhanced Free Trade Agreement.

Latest US trade policy announcements

United States temporarily increases quota for imports of lean beef trimmings

On 26 August 2026, United States (US) President Trump signed a Proclamation temporarily increasing the amount of lean beef trimmings that may enter the US subject to an in-quota tariff rate.

The expanded quota applies for 90 days, beginning on 1 September 2026, and allows imports of up to 100,000 tons per month. It only applies to lean beef trimmings that are to be combined with US beef to produce ground beef.

The Proclamation does not modify any commitments related to beef imports from trading partners that have a Free Trade Agreement with the US and does not apply to countries with country-specific beef quotas.

United States issues guidance on filing entries as Section 338 duties on certain Canadian goods take effect

On 21 August 2026, US Customs and Border Protection (CBP) issued guidance on filing entries for certain Canada-origin goods subject to additional Section 338 duties, following the suspension of US-Canada negotiations and the end of the temporary suspension that had delayed the duties.

The additional duties apply to covered goods entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. eastern time (ET) on 22 August 2026; Harmonized Tariff Schedule of the United States (HTSUS) headings 9903.03.12 through 9903.03.14 carry an additional 50% rate, while headings 9903.03.15 and 9903.03.16 carry a 0% rate.

The CBP guidance addresses how importers, brokers and filers should report the relevant Chapter 99 headings, confirms that covered goods remain subject to other applicable duties, taxes, fees and trade remedy measures, and provides rules for Chapter 98 treatment, foreign trade zone (FTZ) admissions, drawback eligibility and HTSUS reporting order.

See EY Global Tax Alert, US Customs and Border Protection issues guidance on filing entries as Section 338 duties on certain Canadian goods take effect, dated 25 August 2026.

Latest EU trade policy announcements

European Commission sets evidential requirements for "melt and pour" origin reporting under the EU Steel Regulation

On 31 August 2026, the European Commission adopted an implementing act determining the type of evidence that importers must provide to prove the country of "melt and pour" when importing into the EU steel products covered by the EU Steel Regulation.

The implementing act applies from 1 October 2026. From the implementation date, importers of steel products subject to the EU Steel Regulation must declare, in their customs declaration, the country in which the steel has been melted and poured. To support the declaration, the importer must provide a Mill Test Certificate that includes the country of "melt and pour" and the heat number of the imported steel.

If the Mill Test Certificate does not provide the required information or a Mill Test Certificate cannot be provided, customs authorities may consider the following evidence provided that it gives information on the country of "melt and pour" and the heat number: invoices, delivery notes, quality certificates and clauses in implemented purchase orders or contracts, long-term supplier declarations, cost accounting and production documents, customs documents from the exporting country, commercial correspondence or production descriptions.

The EU Steel Regulation entered into force on 1 July 2026 and aims to protect the EU steel sector from the effects of global overcapacity. The Regulation establishes duty-free tariff quotas of 18.3 million metric tonnes, with a 50% customs duty applying to imports exceeding those quotas.

Latest global trade policy announcements

Canada imposes tariffs on US imports in response to Section 232 and Section 338 tariffs

On 25 August 2026, the Canadian Government announced that it will impose tariffs on US imports in response to the US imposing tariffs on Canada under Section 232 of the Trade Expansion Act of 1962 and Section 338 of the Tariff Act of 1930.

From 8 September 2026, Canada will impose tariffs of either 15%, 25% or 50% on US imports and will match the individual product rate imposed by the US.

The tariffs imposed by Canada will apply to products representing CA$27.6 b of imports from the US and will focus on sectors such as dairy, electronics and steel.

The tariffs will be effective from 12:01 a.m. on 8 September 2026.

See EY Global Tax Alerts, Canada announces counter-tariffs in response to new US tariffs, dated 28 August 2026.

Vietnam and MERCOSUR commence PTA negotiations

From 24-28 August 2026, trade representatives commenced the first round of negotiations for a Preferential Trade Agreement (PTA) between Vietnam and the South American trade bloc MERCOSUR.

During the negotiations, both sides exchanged views on the contents of a potential future agreement, while also committing to bilateral cooperation and flexibility in future negotiations.

Switzerland and China conclude negotiations for an optimized FTA

On 20 August 2026, the President of Switzerland, Guy Parmelin, and the Chinese Minister of Commerce, Wang Wentao, announced the conclusion of negotiations for an enhanced Switzerland-China Free Trade Agreement (FTA).

Under the enhanced FTA, both parties have agreed to the following:

• China will remove tariffs on 99.8% of Swiss exports to China. A total of 77.5% of Swiss exports will become duty-free from the date the enhanced FTA enters into force. This is an increase from 53.6% under the existing FTA.
• Key Swiss export sectors will gain duty-free market access, including chemicals, pharmaceuticals and watches.
• Under certain conditions, processing can be carried out on a product in a third country.
• The granting of preferential treatment will no longer require products to be transported directly between Switzerland and China.

The enhanced FTA builds on the existing Switzerland-China FTA, which entered into force on 1 July 2014.

Once both parties have completed their legal review of the texts, they aim to sign the agreement by the end of 2026. This will be followed by the required domestic approval procedures before the FTA enters into force.