Tariffs on Imports

Note this information is subject to change

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Canada

• 25% IEEPA tariff on goods not meeting USMCA (U.S.-Mexico-Canada Agreement) rules of origin.

• 10% IEEPA tariff on potash not meeting USMCA (U.S.-Mexico-Canada Agreement) rules of origin.

• 10% IEEPA tariff on energy not meeting USMCA (U.S.-Mexico-Canada Agreement) rules of origin.

• IEEPA tariffs became effective March 4, 2025.

• March 7, 2025 the carve out for USMCA became effective.

• USMCA qualified goods can be entered without the additional IEEPA rate.

• There’s no mechanism to recover duties paid from March 4 through March 6 on USMCA goods.

• If eligible for USMCA based on USMCA rules of origin, then IEEPA tariff will not apply.

Mexico

• 25% IEEPA tariff on goods not meeting USMCA (U.S.-Mexico-Canada Agreement) rules of origin.

• IEEPA tariffs became effective March 4, 2025.

• March 7, 2025 the carve out for USMCA became effective.

• USMCA qualified goods can be entered without the additional IEEPA rate.

• There’s no mechanism to recover duties paid from March 4 through March 6 on USMCA goods.

• If eligible for USMCA based on USMCA rules of origin, then IEEPA tariff will not apply.

China

• IEEPA 20% tariff on all imports.

• Was initially 10% but was increased to 20% on March 4, 2025.

• Started on February 4, 2025.

• Goods on final leg destined to the US prior to February 1 and arriving before March 7, 2025 were eligible for an exemption on the IEEPA tariff.

• Existing Section 301 tariffs still in affect on top of IEEPA tariffs.

• Tariffs stack including IEEPA, 301 and 232 tariffs.

• Existing Section 301 exclusions are still in effect until their expiry date.

Section 232: Steel & Aluminum Tariffs

• All non-US steel and aluminum tariffs are 25% regardless of origin

• 25% tariffs expanded to include derivative products.

• No more exclusion process

• No Drawback allowed

• End of quota agreements with affected countries

• FTZ admissions must be in Privileged Foreign Status

• Listing of affected HTS codes and their corresponding chapter 99 program tariff can be found at the link below.

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International Emergency Economic Powers Act (IEEPA)

• Grants the U.S. President authority to regulate commerce in response to national emergencies.

• Used to impose economic sanctions, restrict trade, or freeze assets of individuals, companies, or governments.

• Aims to protect U.S. national security and foreign policy interests.

• No drawback allowed

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Multiple media outlets are reporting that the President will increase tariffs on steel and aluminum from Canada from 25% to 50% in response to the electricity price increases announced by the Ontario government for electricity sold to the United States.  The President noted on a Truth Social post that the increase is effective starting tomorrow, March 12, 2025.

Read our full advisory by clicking below.

Customs and Border Protection has issued two CSMS messages, 64348288 and 64348411 providing guidance on handling of steel and aluminum derivatives including derivatives outside of chapters 73 and 76. The additional 25% duty will be applicable starting on March 12, 2025, for ALL steel and aluminum derivatives.

To read our full advisory, click on the link below.

The President has signed an amendment to the Executive Orders related to goods from Canada and Mexico.  This amendment addresses duties on Canadian and Mexican goods that are eligible for duty free entry under USMCA.

To read the full advisory, check out the link below.

An update has been provided regarding the steel and aluminum derivatives that are subject to the 25% additional tariff.  The additional tariffs for the derivatives listed in chapter 73 and 76 will go into effect on March 12, 2025.

To read the full advisory, check out the link below.

Multiple media outlets are reporting that the paused tariffs with Canada and Mexico will go into effect on March 4, 2025.  It has also been stated that the 10% additional tariffs on goods from China implemented in early February may be increased to 20% effective on March 4, 2025.

To read our advisory, check out the file below.

As the Administration continues to announce numerous new tariffs on various imported goods, it is crucial for importers to review their continuous bond sufficiency. With increased tariff rates and new product categories subject to additional duties, the potential for higher liabilities has significantly risen.

To read the full advisory check out the link below:

On February 11, 2025, the President issued a proclamation regarding the importation of steel and aluminum articles, increasing tariff rates to 25% from all countries. As part of that proclamation, it was announced that there would be expanded 25% tariffs to include key downstream products (derivatives) for both steel and aluminum. The Annex containing those products has been drafted and is expected to be officially published in the Federal Register on February 18, 2025.

Key Points:

• There are 167 new codes for steel downstream products (derivatives) subject to the 25% tariff referenced in this proclamation (covering 4 different chapters of the HTSUS).

• There are 123 new codes for aluminum downstream products (derivatives) subject to the 25% tariff referenced in this proclamation (covering 11 different chapters of the HTSUS).

To read the draft Federal Register, and access our Excel listing of HTS affected, click the links below:

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On February 13, 2025, during a news conference, the President directed agencies to investigate plans for reciprocal tariffs.  In attendance, Howard Lutnick, the Commerce Secretary nominee commented that the investigation will likely be completed by April 1 and that the President could act as soon as that investigation is complete.

Click below to read the full advisory.

On February 1, 2025, under the International Emergency Economic Powers Act (IEEPA), the administration is implementing 10% additional tariff on imports from China.  

Originally, Canada and Mexico were to have 25% tariffs imposed, however after late meetings between the President of Mexico and the Canadian Prime Minister, news outlets are reporting there will be a 30 day pause on these potential tariffs.

More details include that goods admitted to FTZs must be admitted under privileged foreign status, no duty drawback will be allowed, and there will be no section 321, or de minimis shipments allowed for products of China.

Additional details will be shared as soon as available.  As this is a fast-changing situation, all details are subject to change.

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Check out our Client Advisory:

Indira Coomar from our JAS Forwarding (USA) Inc. Norfolk branch has been with JAS for 14 years in September.  She likes to run each morning.  During her runs, she takes some very beautiful photos of the sunrise over the beach and shares them with an inspirational quote to start many days. One of her recent quotes was “the secret to getting ahead is getting started!”  We appreciate Indira’s motivation, and this attitude perfectly reflects that People Make the Difference.

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July 2024, JAS Forwarding (USA) Inc.’s Laurie Arnold (VP Compliance) and Scott Cassell (Corporate Compliance Project Manager) facilitated a client seminar covering Foreign Trade Zone, Forced Labor and Duty Drawback.  The event was hosted by our JAS Forwarding (USA)Inc. Charlotte Branch!

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CBP publishes monthly trade statistics that provide a snapshot of the volume of shipments being processed.  In May2024, CBP processed more than 2.9 million entry summaries.  This includes numerous modes of transport from all over the world.  

CBP’s monthly trade stats show duties paid, seizures, WRO data and much more.

To read the full article, check out the link below.

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CBP has announced an increase of the Merchandise Processing Fee (MPF) within the Consolidated Omnibus Budget Reconciliation Act (COBRA). The fee increase will be effective on October 1, 2024.

The new minimum will increase from $31.67 to $32.71. The new maximum will increase from $614.35 to 634.62. The ad valorem rate of 0.3464% remains unchanged.

For more details check out the link below.

The USTR (US Trade Representative) has indicated that the increase originally expected on the 301 tariffs on August 1, 2024 will not go into effect as expected.  

The USTR has received 1100 comments from the public and continues to review those comments.  Modifications for 2024will likely take effect approximately two weeks after the final determination is made public.

Check out our client advisory and the links to the USTR and Federal Register Notice dated May 28, 2024.

To read more, check out the full register notice linked below.

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The recent June 12, 2024, Federal Register notice added three entities to the UFLPA Entity List showing increasing focus on three additional commodities. The entities which were added are suspected of working with the Xinjiang Uyghur Autonomous Region to recruit, transport, transfer, harbor or receive forced labor or Uyghurs, Kazakhs, Kyrgyz, or members of other persecuted groups out of the Xinjiang Uyghur Autonomous Region.

The areas of increased focus include shoe and shoe materials, frozen seafood, vegetables, quick frozen convenience food and other aquatic food, and electrolytic aluminum, graphite carbon, and prebaked anodes.

To read more, check out the full register notice linked below.

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On June 24, 2024, the Assistant Secretary of Commerce, Matthew S. Axelrod signed a settlement agreement with an exporter for violations of EAR. The violations occurred because of forty-two different shipments over the course of 4 years which were classified under ECCNs 1C353. These instances were subject to export licenses, but no licenses were obtained prior to exportation.

The exporter has a compliance team and upon recognition of the issue, submitted a voluntary self-disclosure. To read more details, check out the link below.

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The last 30 days have brought many updates to Section 301 duties, exclusions and more.  The action all started on May 14, 2024, when the USTR announced that further action would be taken against China’s unfair technology transfer policies and practices.  It was announced that key products would be subject to new rates over the next two years.  

May 22, 2024, there was a follow up to the May 14 announcement which further defined that 382 HTSUS subheadings and 5 statistical reporting numbers of the HTSUS are the specific products that will have the increases in 2024, 2025 and 2026.  This notice also noted that an exclusion process is being established for machinery used in domestic manufacturing and under certain subheadings under chapters 84 and 85 of the HTSUS.  Finally, this notice proposes 19 temporary exclusions for solar manufacturing equipment.

Finally, on May 24, 2024, the USTR published details about the disposition of the existing Section 301 exclusions 9903.88.67 and 9903.88.68 which have been scheduled to expire on May 31, 2024.  In summary, all exclusions under 9903.88.67 and 9903.88.68 have been extended to July 14, 2024.  On July 15, 2024, a new exclusion will be effective.  The new exclusion, under 9903.88.69 will cover 87 of the original 352 exclusions under 9903.88.67.  

For more details, check out our 3 Client advisories released during May linked below.

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CBP publishes numerous Informed Compliance Publications. These documents can be extremely useful in answering detailed questions about the application of CBP rules/laws on a wide range of topics. Some of the topics covered include Valuation, classification of sets, classification of specific product types, drawback, reasonable care, recordkeeping, rules of origin and the list goes on. These documents are publicly available and can be viewed online or downloaded. To check them out, follow the link below!

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The U.S. Commerce Department’s Bureau of Industry and Security (BIS) has updated the process for excluding certain steel and aluminum imports from tariffs, effective July 1, 2024. This revision removes twelve General Approved Exclusions (GAEs), aiming to strengthen domestic steel and aluminum production and reduce reliance on foreign manufacturing.  The changes follow public feedback and are intended to ensure fairness and transparency in the exclusions process while upholding national security interests.  BIS has been overseeing this process since tariffs were imposed in 2018, and these adjustments reflect ongoing efforts to refine controls and support U.S. industrial base.

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In December, 2023, FDA issued guidance for Industry regarding the registration and listing of Cosmetic Product Facilities and Products.  The publication lists product categories and provides a Q&A section with answers to specific cosmetic product questions.  The deadline is July 1, 2024.  For more info and links, check out our most recent client advisory linked below:

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A multinational organization based in Bangkok, Thailand, has agreed to pay $20,000,000 to settle potential civil liability for 467 apparent violations of OFAC sanctions on Iran. Between 2017 and 2018, the company facilitated $291 million in wire transfers through U.S. financial institutions for the sale of Iranian-origin high-density polyethylene resin (HDPE), manufactured by a joint venture involving the parent company in Iran. HDPE is a robust resin used in various plastic products such as food and beverage containers, shampoo bottles, and industrial items. Concurrently, the company initiated U.S. dollar wire transfer transactions to settle the joint venture’s debts to third-party vendors.

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BIS has released the newest iteration of their guidance on export enforcement.  The “Don’t Let This Happen to You” guidance document is dated March 2024 and is 76 pages of important guidance for the export community.  The opening letter states “Export controls have never been more important to our collective security interests than they are today.”  Follow the link below to check out more details!

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The U.S. Customs and Border Protection (CBP) has issued a Withhold Release Order (WRO) against work gloves manufactured in a Chinese company and its subsidiaries, based on evidence suggesting the use of convict labor. This action is part of the U.S. government's efforts to combat forced labor globally. With nearly 28 million workers suffering under such conditions worldwide, WROs are a means to deter companies from exploiting labor and to protect vulnerable populations. By enforcing laws prohibiting the importation of goods produced by forced labor, CBP aims to safeguard American workers, businesses, and consumers. Currently overseeing and enforcing numerous WROs and Findings, CBP emphasizes its commitment to eliminating forced labor from U.S. supply chains and encourages reporting of suspected violations.

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JAS Forwarding (USA) Inc.’s VP Compliance, Laurie Arnold and Compliance Operations Manager and NCBFAA Legislative Committee Chair, Leah Ellis, has diligently championed to help pass the Customs Business Fairness Act (CBFA) for many years alongside the National Customs Brokers & Freight Forwarders Association of America (NCBFAA).  In a significant victory for Customs Brokers the bill was included in a continuing resolution bill that passed both the House and Senate.  The CBFA has finally come to fruition.  “The CBFA bill has been a long-standing passion of mine to help prevent Customs Brokers from having to return customs duties when an importer has filed bankruptcy and at long last (20 years) this bill has passed and signed into law and I am very happy to have been a part of the march to protect the Customs Brokers of our industry,” said Laurie Arnold when asked for her reaction on the passing of CBFA.

The CBFA, a long-standing initiative of the NCBFAA, aims to protect customs brokers and their employees by advocating for changes in bankruptcy laws. The bill seeks to grant "subrogation" rights to customs brokers, allowing them to assume the priority rights of U.S. Customs and Border Protection (CBP) when importers file for bankruptcy. This would prevent payments made to CBP through customs brokers from being subject to preference payment recovery actions during the 90-day period preceding the importer's bankruptcy filing.

NCBFAA President Jose D. (JD) Gonzalez lauded the passage of CBFA, emphasizing its importance to the customs broker industry. He credited the dedicated efforts of the association's Legislative Committee leadership, Legislative Advisor Nicole Bivens Collinson, and member companies for lobbying lawmakers and pushing for the bill's passage.

Special recognition was extended to Rep. Andrew Garbarino (R-NY) for his role in championing CBFA in the House of Representatives. Garbarino reintroduced the bill at the association's request in 2023, garnering bipartisan support with 28 co-sponsors. NCBFAA expressed gratitude to its members for their engagement in advocacy efforts, including letter-writing campaigns urging Representatives to support the bill.

NCBFAA also acknowledged the contributions of individuals and organizations who worked tirelessly over the past two decades to advance CBFA. Past and current leaders of the association's Legislative Committee, along with former NCBFAA Legislative Representative Jon Kent, were recognized for their efforts. Additionally, the longstanding lobbying efforts of organizations such as the New York/New Jersey Foreign Freight Forwarders & Brokers Association, JFK Airport Customs Brokers and Forwarders Association, and International Trade Surety Association were highlighted as instrumental in the bill's progress.

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