The President has issued an executive order “Addressing Threats to the United States by the Government of the Russian Federation” on August 6, 2025. This executive action falls under the International Emergency Economic Powers Act (IEEPA).
This order addresses findings that the Government of India is currently directly or indirectly importing Russian oil. As a result, articles of India imported into the United States shall be subject to an additional ad valorem rate of duty of 25%. This will take affect on August 27 and will be in addition to the 25% reciprocal tariff that takes effect for India on August 7.
Goods that were loaded onto a vessel at the port of loading and in transit on the final mode of transit prior to entry into the United States before 12:01 am EDT on August 27, and are entered for consumption, or withdrawn from warehouse for consumption before 12:01 am EDT on September 17, 2025, the tariff will not apply.
Click below to read more:
Per the Executive Order “Amendment to Duties to Address the Flow of Illicit Drugs Across Our Northern Border” issued July 31, 2025, goods that are products of Canada, that are entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. EST on August 1, 2025, the following will be subject to additional duty rates:
All articles that are subject to the additional ad valorem rate of 25% under EC 14193 as amended, shall instead be subject to an additional ad valorem of 35%.
Check out the links below:
The White House has issued an update to Executive Order 14257 “Further Modifying the Reciprocal Tariff Rates” on July 31, 2025. Certain countries identified in Annex I to this order will remain subject to the additional ad valorem duty rates provided in Annex I until such time as final agreements are concluded and the President issues subsequent orders.
Goods of any foreign trading partner not listed in Annex I to this order will be subject to an additional ad valorem rate of duty of 10% unless otherwise expressly provided.
The rates are effective with respect to goods entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. EST on August 7, 2025.
There is an in-transit exemption for these reciprocal tariffs. Goods loaded onto a vessel at the port of loading and in-transit on the final mode of transit before 12:01 am EST August 7, 2025, and entered for consumption or withdrawn from warehouse for consumption, before 12:01 am EST on October 5, 2025, shall not be subject to the new rates and remain subject to the 10% additional tariffs.
Annex I list of countries is provided in the below link.
Check out the links below:
The President has posted on Truth Social that Trade Talks with Mexico will be extended for 90 days.
The President stated that because of the complexities of a deal with Mexico, “We have agreed to extend, for a 90 day period, the exact same deal as we had for the last short period of time, namely that Mexico will continue to pay a 25% fentanyl tariff, 25% tariff on cars, and 50% tariff on steel, aluminum, and copper.”
For the next 90 days, trade with Mexico will continue as it has been.
Click below to read more:
The President has issued an executive order “Suspending Duty-Free De Minimis Treatment for All Countries” on July 30, 2025. This executive action falls under the International Emergency Economic Powers Act (IEEPA).
This order modifies previous orders from February and April and removes the provision for all counties effective August 29. This means that the low value $800 de minimis provision will no longer be available. Low value shipments will still be allowed; however, all shipments will be subject to duties either through formal consumption entry (type 01) or informal entry (type 11-for values less than $2500). The order also notes that CBP may require a bond on informal entries.
The orders also address goods shipped in the international postal system. These goods will have to pay either the applicable IEEPA reciprocal duty rate, or a per package fee based on a country’s IEEP reciprocal tariff. If the IEEPA reciprocal tariff is less than 16%, then the per package rate will be $80. If it is between 16-25%, the per package rate will be $160. If greater than 25%, then the rate will be $200. Note that the per package fee will only be available for the first 6 months. After that, the applicable IEEPA rate will be applied.
Click below to read more:
The President has issued an executive order “Addressing Threats to the United States by the Government of Brazil” on July 30, 2025. This executive action falls under the International Emergency Economic Powers Act (IEEPA).
The order imposes an additional ad valorem duty rate of 40 percent. Note that the existing IEEPA reciprocal tariff will also apply to goods subject to the new rate bringing the total rate to 50%. This action shall be in addition to any other duties, fees, taxes, etc. applicable to such imports, unless subject to existing or future actions under section 232 of the Trade Expansion Act of 1962, in which case the duty imposed in this order shall not apply.
The ad valorem rate imposed in the order shall not apply to items listed in Annex I (includes a wide variety of goods such as silicon metal, pig iron, civil aircraft, Brazil nuts, orange juice, some energy products, wood pulps, certain paper, etc.) of the order or items excepted by 50 U.S.C. 1702 (b) – (i.e. postal, telegraphic, telephonic, or other personal communication, donations of food, clothing and medicine intended to relieve human suffering; merely informational materials; transactions ordinarily incident to travel to or from any country, including importation of accompanied baggage for personal use)).
The order provides an in-transit exception. Goods in transit that were loaded on to a vessel at the port of loading and in transit on the final mode of transit prior to 12:01 am EDT August 6, 2025, and were entered for consumption, or withdrawn from warehouse for consumption before 12:01 am EDT on October 5, 2025, the tariff will not apply.
Products admitted to an FTZ after 12:01 am EDT on August 6, must be admitted as privileged foreign status. Retaliation to this order could result in increased or expanded scope. There is no express prohibition to claiming duty drawback on these tariffs.
Click below to read more:
The President has issued a Proclamation “Adjusting Imports of Copper into the United States” on July 30, 2025. This proclamation falls under Section 232 of the Trade Expansion Act of 1962.
This proclamation imposes 50% tariffs on imports of semi-finished copper and intensive copper derivative products. The proclamation includes an Annex that helps define the full scope.
The rate of 50% will be applied in addition to other duties, fees, etc. applicable to imported goods. The 50% tariff will be assessed on the value of the copper content in a product and the non-copper content will be subject to the IEEPA reciprocal tariff or other duties such as IEEPA drug/border tariffs or section 301 tariffs on China etc.
The 50% tariff shall not apply to products subject to the auto/auto parts section 232 tariffs.
These tariffs will be effective for goods entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 am EDT August 1, 2025.
Products admitted to an FTZ after 12:01 am EDT on August 1, must be admitted in Privileged Foreign Status. Duty drawback is prohibited on goods subject to this provision.
Click below to read more:
Customs and Border Protection has announced an increase to the Merchandise Processing Fee assessed on imported goods. The increase is effective on October 1, 2025.
CSMS message 65741993 gives the details of the adjustments. For standard entry types, MPF is assessed at 0.3464% ad valorem with minimums and maximums. The minimum will be adjusted from the current $32.71 to $33.58. The maximum will be adjusted from $634.62 to $651.50.
Click below to read more:
The President has announced a trade deal with the European Union.
Some of the terms of the deal are that the EU will purchase $750 billion worth of US energy, invest 600 billion in the US, and buy more US military equipment.
Additionally, the EU will lower the tariff on US origin goods to 0% and the US will impose 15% instead of the original 30% that was expected.
Steel and aluminum will remain at 50% for EU origin products under Section 232.
In a White House Fact Sheet, the Indonesia deal is outlined. Under this deal with Indonesia, the reciprocal tariff will be 19%. Other key terms include eliminating tariff barriers, breaking down non-tariff barriers for US industrial exports, US agricultural exports, and more. Additional details are in the fact sheet linked below.
In a Truth Social Post, the President has indicated that a deal has been made with Japan. According to the post, the deal includes Japan investing in the US, Japan opening their country to trade including cars and trucks, rice and other ag products etc. The reciprocal rate under this deal will be 15%. The full Truth Social post is linked below.
Click below to read more:
Dear Valued Client,
The President has announced on Truth Social with a letter to Canada that effective August 1, 2025, Canada will face a 35% tariff. The letter also advises that goods transshipped to avoid the higher tariff will be subject to a higher tariff.
So far, the Administration has sent letters to 25 countries all effective August 1. Here are the countries:
Japan (25%)
Korea (25%)
South Africa (30%)
Kazakhstan (25%)
Laos (40%)
Malaysia (25%)
Myanmar (40%)
Tunisia (25%)
Bosnia and Herzegovina (30%)
Indonesia (32%)
Bangladesh (35%)
Serbia (35%)
Cambodia (36%)
Thailand (36%)
Brazil (50%)
Algeria (30%)
Iraq (30%)
Libya (30%)
Sri Lanka (30%)
Brunei (25%)
Moldova (25%)
South Korea (25%)
Philippines (20%)
Canada (35%)
Click below to read more:
Dear Valued Client,
The President has announced on Truth Social that effective August 1, 2025, there will be a 50% tariff assessed on copper imports. The President states that copper is the second most used material by the Department of Defense.
The Administration ordered a Section 232 investigation on copper back in February. The President notes in his post that he has received robust National Security Assessment which results in the copper tariff announcement.
At this time, there is no official Executive Order addressing the copper tariffs.
Click below to see the Truth Social Post:
Dear Valued Client,
On July 7, the administration has notified several different countries including Japan and South Korea of their new reciprocal tariffs that are expected to be applicable as of August 1. These letters are related to the reciprocal tariffs from the April 2 Executive Order 14257 that were paused starting on April 9.
Additionally, the President has signed an executive order extending the 10% reciprocal tariff to continue until at least August 1.
Click below to reach the White House Fact sheet and Executive Order:
Dear Valued Client,
The President has posted on Truth Social that a deal has been made with Vietnam. The preliminary details indicate that Vietnam will be subject to 20% tariff on goods sent directly to the US and 40% on goods transshipping. The President’s post indicates that Vietnam will open their markets to the United States.
Currently this has only been posted on social media. It is not an official announcement.
Additional updates will follow once they are available.
On June 4, the Court of International Trade determined that IEEPA does not give the President authority to impose reciprocal or drug/border tariffs. The administration immediately filed an appeal and requested a stay.
On June 10, the Court of Appeals Federal Circuit (CAFC) issued the stay which means that for the time being, the IEEPA tariffs will remain while the courts litigate on this matter.
Oral arguments are scheduled for July 31 and a final decision from CAFC is not expected until at least August.
Items falling under Section 232 have had some updates in June. In a Federal Register Notice dated June 23, the Commerce Department added a variety of home appliances with steel content. These items will now be subject to 50% on the steel content effective June 23.
Additionally, CBP issued instructions in CSMS message 65340246 on reporting of unknown country of smelt and cast for aluminum. Effective June 28, 2025, for imports of derivative aluminum subject to Section 232, if the importer does not know the country of smelt and/or cast, then “unknown” will be reported. Note that when “unknown” is reported, importers will be assessed the 200% Section 232 duties.
To read more details:
Dear Valued Client,
On Sunday, Canada rescinded the Digital Services Tax in an effort to continue trade discussions with the United States.
Reports are that the US President and the Prime Minister of Canada have agreed to continue talks.
Additional updates will follow once they are available.
Dear Valued Client,
Almost 90 days after the President authorized the 90 days PAUSE on higher country rate reciprocal tariffs, some countries have made progress and some have made deals.
As July 8 approaches, there is talk from the President indicating that some of the reciprocal tariffs will go back into effect for countries that have not worked on a deal.
Additional updates will follow once they are available.
The President has announced on Truth Social that all discussions on trade with Canada have been terminated effective immediately. The President stated that the termination is because of years of tariffs on dairy products at 400%, and a recently announced Digital Services Tax on American tech companies.
The President also stated that the tariff rate for Canada will be announced in the next seven days.
Check out the link below:
Section 232 Product Listings
On June 13, 2025, CBP released CSMS message 65340246. This message provides guidance on Section 232 aluminum import instructions for reporting unknown for the country of smelt and cast.
Effective on June 28, 2025, for imports of derivative aluminum subject to Section 232, if the importer does not know the country of smelt and/or cast, then “unknown” will be reported. Note that when “unknown” is reported, importers will be assessed the 200% Section 232 duties.
It is extremely important for importers to work with suppliers to obtain the country of smelt and cast for aluminum items so that it can be properly reported.
Check out the CSMS message below:
On June 11, the President announced on Truth Social that the “the deal with China is done.” According to the post, the President and the President of China are working toward final approval.
The Truth Social posting by the President states that the tariffs on Chinese origin goods will be 55%. The 55% will be a combination of existing tariffs including 10% IEEPA reciprocal tariffs, 20% IEEPA drug/border tariffs, and the 25% Section 301 tariff that covers most Chinese origin goods (note some Section 301 rates are currently higher and some are lower).
Full details are not yet known.
Check out the links below:
For June, we are highlighing Maria “Connie” Villarreal. Connie came to JAS in 2022 and found a great interest in Customs and wanted to learn more. She wanted to expand her skills and take the opportunity to serve as a team leader and trainer for colleagues. Connie firmly believes in embracing opportunities for growth and shows enthusiasm about exploring fresh perspectives and experiences that promote career progression.
As a spouse and parent of four children (two that have reached adulthood), Connie makes time for hobbies and family bonding. She loves to read romance and thriller books, watching movies, and spending time with her loved ones. She also cherishes opportunities to indulge in spa days with her youngest daughter and cook meals with her son.
Connie is another example that “People Make the Difference.”
In May, JAS Forwarding (USA) Inc. Compliance team met at the USA Corporate Headquarters in Atlanta, GA. During the meetings, the team worked to align on all of the trade changes and learn from each other to continue to provide positive impacts to our clients.
From Left to Right: Ted Myron, Xenia Vazquez, Leah Ellis, Calvin Oh, Margaret Christian, Casey Hughes, Laurie Arnold, Scott Cassell, and Yvette Sosa
The Court of International Trade has determined that IEEPA does not give the President authority to impose reciprocal or drug/border tariffs.
The Adminstration immediately appealed and requested a stay in the Court of Appeals Federal Circuit which has ben approved. This means that IEEPA tariffs will remain in effect while this is being reviewed in the appellate process.
Click below to read more:
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The USTR has announced that they will extend Section 301 exclusions for 164 items plus 14 exclusions covering solar manufacturing equipment. These items were extended on May 30, 2024, and September 18, 2025 respectively and were set to expire on May 31, 2025. The new expiration date is August 31, 2025.
On June 3, 2025, the President signed a proclamation, “Adjusting Imports of Aluminum and Steel into the United States.” This proclamation addresses previous statements on increasing steel and aluminum duties from 25% to 50%.
Per the proclamation, all countries except for U.K. will now be subject to 50% for 232 tariffs on steel/aluminum and derivatives. Steel/aluminum and derivative imports from the U.K. will remain at 25% at least through July 9. The Commerce Secretary may adjust the rate at that time if needed.
This is effective for consumption entries as of 12:01am Eastern time June 4, 2025, and there are no in-transit exemptions, and no drawback is allowed on these duties.
With regards to steel/aluminum and derivative items,duties will be applied as follows:
- Automobiles/auto parts
- Section 232 automobiles and auto parts
- Automobiles will be subject to 25% tariff rate
- Auto parts will be subject to 25% tariffs on the non-U.S. content
- Section 232 automobiles and auto parts
- Products of Canada/Mexico
- Section 232 steel/aluminum
- Items will be subject to 50% tariff rate
- IEEPA Drug/Border tariff will not apply to Section 232 steel/aluminum items at 50%
- 232 derivatives
- 232 derivatives will be subject to 50% tariff rate on non-U.S. steel/aluminum content value
- 232 derivatives will be subject to 25% IEEPA Drug/Border tariff on the other (non-steel/aluminum content)
- Section 232 steel/aluminum
- Products of countries other than Canada/Mexico
- Section 232 steel/aluminum
- Items will be subject to a 50% tariff rate (25% for the U.K.)
- IEEPA Drug/Border tariff (20%) WILL apply to items from China
- 232 derivatives
- 232 derivatives will be subject to 50% tariff rate on non-U.S. steel/aluminum content value (25% for the U.K.)
- 232 derivatives will be subject to the current reciprocal tariff rate (10% June 4) on other (non-steel/aluminum content)
- Section 232 steel/aluminum
Check out the links below:
The President has posted on Truth Social that tariffs on steel and aluminum will be raised from the current 25% to 50%. This change is expected to be effective on June 4.
The President stated that this increase will help continue to bring steel and aluminum production back to the US.
Check out the Truth Social post below:
Update
As previously advised in our advisory below, CIT has determined that IEEPA does not give the President authority to impose reciprocal or drug/border tariffs.
For clarity note that the CIT directed the U.S. Government to enforce a permanent injunction against the IEEPA tariffs within 10 calendar days of its decision, setting a deadline of June 7, 2025. In response, the government promptly filed an appeal with the US Court of Appeals in the Federal Circuit and submitted a motion requesting a stay of judgment’s enforcement during the appeal process. If CIT grants the stay, the IEEPA tariffs will likely remain in place until a final ruling is issued. In other words, nothing changes at this time until additional instructions have been provided.
Until JAS receives further information/instructions from CBP, we are required to continue to apply all existing tariffs.
Additionally, it remains uncertain whether importers will be allowed to file claims for refunds on IEEPA tariffs they have already paid.
Note this is a fluid situation that we will continue to monitor.
Previously advised:
The Court of International Trade has determined that IEEPA does not give the President authority to impose reciprocal tariffs or drug/border tariffs. The court has ruled that the IEEPA tariffs exceed the authority granted to the President.
Per the judgement issued on May 28, 2025, Executive order 14193 (Canada Drug/Border), Executive order 14194 (Mexico Drug/Border), Executive order 14195 (China Drug/Border), and Executive order 14257 (Reciprocal Tariffs), all modifications and amendments are declared invalid as contrary to law.
The administration has the option to appeal, and it is expected that they will file an appeal. It is also very likely the administration will request a stay pending a decision on the appeal, meaning that the tariffs are probably going to stay for a while longer.
Check out the links below for more information.
The Administration has announced a 90-day pause on the recently escalating tariffs with China. During the pause, the US will reduce the 125% reciprocal tariff rate down to 10% which is currently applicable to all other countries. The 20% IEEPA drug/border tariff will remain during the pause.
Part of the agreement includes China removing their retaliatory tariffs and restrictions taken since April 2.
These actions are expected to be in effect by May 14, 2025, and will last for 90 days. The US and China will work to continue trade talks to address issues.
In summary, tariffs on imported Chinese goods will be applied as follows:
- Most Favored Nation rate (MFN)
- Section 301 duty rate (7.5%-100% depending on HTS)
- IEEPA Drug/Border (20%)
- IEEPA Reciprocal (at 10%), OR Section 232 (25% steel/aluminum/autos/auto parts/derivatives) – whichever is applicable by law
Check out the White House announcement, joint statement and fact sheet at the links below.
CBP has announced in CSMS 64981848 that they will be presenting a monthly series of four ACE Reports informational webinars starting on May 21. Below are the schedule and topics for the webinars:
1. Topic: Schedule and Email Recurring Reports
Webinar Date/Time: Wednesday, May 21, 2025, 1:00 p.m. ET
Virtual Office Hours Date/Time: Thursday, May 22, 2025, 1:00 p.m. ET
2. Topic: Modifying Reports
Webinar Date/Time: Tuesday, June 17, 2025, 1:00 p.m. ET
Virtual Office Hours Date/Time: Wednesday, June 18, 2025, 1:00 p.m. ET
3. Topic: Adding Dynamic Dates
Webinar Date/Time: Wednesday, July 30, 2025, 1:00 p.m. ET
Virtual Office Hours Date/Time: Thursday, July 31, 2025, 1:00 p.m. ET
4. Topic: Webinar Topic Coming Soon!
Webinar Date/Time: Wednesday, August 13, 2025, 1:00 p.m. ET
Virtual Office Hours Date/Time: Thursday, August 14, 2025, 1:00 p.m. ET
Information on how to join the webinars will be provided in an upcoming CSMS message. Check out the CSMS message link below for more details.
The President and the UK Prime Minister announced a trade deal, providing American companies access to the UK markets.
The trade deal will expand US market access in the UK, creating a $5 billion opportunity for new exports for US farmers, ranchers, and producers.
Additionally, the deal will create preferential access to UK aerospace components, and 10% reciprocal tariff rate on the first 100,000 UK origin vehicles per year (with the rate increasing to 25% after that threshold).
The White House Fact Sheet also states that “The United States…will negotiate an alternative arrangement to the Section 232 tariffs on steel and aluminum.”
No dates have been provided on when these actions will take effect. Click below to check out the White House Fact Sheet:
JAS Forwarding (USA) Inc. Compliance Project Manager, Scott Cassell in partnership with Sheryl Roberts, Director of Ocean Services, presented at a client event at our JAS ATL Branch. Ocean trends were discussed along with all the tariffs in the news.
Pictured Left to Right: Lars Huebecker, Tabitha Ackermann, Scott Cassell, Sheryl Roberts, and Cameron Hall
Laurie Arnold and Leah Ellis from the JAS Forwarding (USA) Inc. Compliance team attended the annual NCBFAA (National Customs Brokers and Forwarders Association of America) conference in April. Laurie Arnold, our VP of Compliance is also the Secretary of the NCBFAA. Leah is the NCBFAA Legislative Committee Chair. Our Compliance team attends numerous events during the year to stay on top of current events and issues!
Leah is on the left looking at the camera and Laurie on the right looking at the camera!
With rising tariffs, importers of record should proactively coordinate with their financial institutions to ensure that Customs and Border Protection (CBP) can successfully debit the appropriate duty amounts from their bank accounts.
Your bank may need to adjust the Debit Cap or remove a Debit Blocker associated with CBP debits. This action requires providing your bank with the CBP Company ID, which was originally issued in your ACH Debit Acceptance letter.
To avoid failed transactions, it is critical to:
• Review ACH debit reports to monitor the amounts CBP is drawing from your account.
• Confirm sufficient funds are available in your account to cover upcoming debits.
• Work with your bank to raise your debit cap if the increased tariffs result in higher duty payments.
Failure to ensure adequate authorization or funding could lead to debit rejections, which may trigger the issuance of a debit voucher and possible removal from the ACH Debit program, along with potential liquidated damages.
If you're moving to your own ACH Debit Pay Types 3, 7, or 8, here are additional steps to take:
• Notify your bank that CBP is authorized to debit your account.
• Provide the CBP Company ID to your financial institution.
• Set an adequate dollar limit on your ACH authorization to cover all expected Duties, Taxes, and Fees.
• Establish a daily transaction limit with your bank that accommodates the number of charges CBP may process (especially important for Periodic Monthly Statement (PMS) participants, who may incur multiple transactions in a single billing cycle).
CBP has stated in CSMS message 64916414 that they will publish refund procedures and any necessary updates to the Harmonized Tariff Schedule of the United States (HTSUS) in a Federal Register Notice no later than May 16, 2025. The message goes on to say that “Filers should refrain from requesting refunds until refund procedures are announced in the Federal Register Notice.”
This is related to the Executive Order, “Addressing Certain Tariffs on Imported Articles,” signed on April 29 which gives guidance on the application of tariffs imposed by previous presidential actions.
To read more details click below:
Click below to download a copy of the JAS Forwarding (USA) Inc. CTPAT Certificate
The President issued a Proclamation on April 29, 2025. The Proclamation states in part “To more effectively eliminate the threat to impair national security posted by imports of automobiles and automobile parts,...it is necessary to modify the system imposed in Proclamation 10908 by reducing the duties assessed on automobile parts for 15% of the value of an automobile assembled in the United States for 1 year and equivalent to 10% of that value for an additional year...” The Proclamation continues and states that “For automobiles assembled in the United States, automobile manufacturers shall be eligible to receive an import adjustment offset amount applicable to section 232 duties on automobiles...”
The Proclamation also defines the schedule for the import adjustment offset. “The automobile manufacturer may apply for an import adjustment offset amount equal to 3.75% of the aggregate MSRP value of all automobiles assembled in the US from April 3, 2025, through April 30, 2025.” It goes on to say, “The automobile manufacturer may apply for an import adjustment offset amount equal to 2.5% of the aggregate MSRP value of all automobiles assembled in the United States from May 1, 2026, through April 30, 2027.”
The Proclamation states that a process will be established for manufacturers to seek an import adjustment offset amount.
The President also issued an Executive Order on April 29, 2025. This order exempts good subject to 232 automobile and auto parts tariffs from section 232 steel/aluminum tariffs, and IEEPA drug/border tariffs for goods from Canada and Mexico.
The executive order also states “This order shall apply retroactively to all entries of merchandise subject to any applicable tariffs... (as noted above)...and made on or after March 4, 2025. Any refunds will be processed pursuant to applicable laws and U.S. Customs and Border Protection’s standard procedures for such refunds.
JAS Forwarding (USA) Inc. will provide more details on the refunds procedures once the guidance has been provided by CBP.
The President issued an Executive Order on April 9, 2025 aimed at “Restoring America’s Maritime Dominance.” The order covers numerous topics including a Maritime Action Plan, Ensuring Security and Resilience, PRC’s unfair actions, and other topics.
One key topic addresses the enforcement/collection of HMF (Harbor Maintenance Fees) and other charges. Historically, HMF was payable on all entries of goods by ocean mode of transport at US ports (including inland ports where cargo imported at a sea port and moved in bond inland). Cargo routed through Canada and Mexico and entered by land borders were not assessed the HMF fees. The executive order directs the Secretary of Homeland Security to take steps to collect HMF and any other fees etc. PLUS a 10% service fee for cargo first arriving in Canada or Mexico by vessel.
Another key issue addressed is the “Targeted and Phased Action to Reverse Chinese Dominance and to Restore American Shipbuilding.” These actions will occur in two phases. For the first 180 days, applicable fees will be set to zero. After 180 days:
• Fees on vessel owners and operators of China based on net tonnage per U.S. voyage, increasing incrementally over the following years - the fee would start at $50/NT in 180 days and increases by $30/NT per year over the next three years;
• Fees on operators of Chinese-built ships based on net tonnage or containers, increasing incrementally over the following years - the fee would start at $18/NT or $120 per container in 180 days, and would increase by $5/NT per year, or the same proportional yearly amount per container (e.g., in year 2, to $154 per container), over the next three years; and
• To incentivize U.S.-built car carrier vessels, fees on foreign-built car carrier vessels based on their capacity - the fee would start at $150 per Car Equivalent Unit (CEU) capacity of the entering non-U.S. built vessel in 180 days.
To read all related documents, check out the links below.
The President issued a memorandum on April 11, 2025 providing clarification of exceptions under Executive Order 14257 of April 2, 2025. In this EO, the President stated that certain goods are not subject to the ad valorem rates of duty under that order. Some of the excepted products are chips, computers, and smartphones.
The memorandum of April 11, 2025 notes that products classified in the following headings and subheadings of the HTSUS are included:
8471, 8473.30, 8486, 8517.13.00, 8517.62.00, 8523.51.00, 8524, 8528.52.00, 8541.10.00, 8541.21.00, 8541.29.00, 8541.30.00, 8541.49.10, 8541.49.70, 8541.49.80, 8541.49.95, 8541.51.00, 8541.59.00, 8541.90.00, and 8542.
Any duties collected at or after 12:01 a.m. eastern daylight time on April 5, 2025 are eligible for refunds in accordance with US CBP procedures. JAS Forwarding (USA) Inc. is reviewing past entries to see if any updates can be made and our branches will reach out to confirm approval to process.
The President has posted on Truth Social that as a result of China’s actions, he is increasing the tariff rate charged to China by the United States to 125%, effective immediately.
Additionally, the President has authorized a 90 day PAUSE on higher country rate reciprocal tariffs (Excluding China) because of more than 75 affected countries reaching out to the US to negotiate a solution.
During this time, the 10% reciprocal tariff that went into effect on April 5, 2025 on all countries will continue.
These changes are effective immediately per the posting. This has not been formally announced and we are awaiting the official notice.
The White House Press Secretary announced today April 8, 2025 that the President is set to impose an additional 50% on Chinese imports. The additional 50% is set to take effect at 12:01 a.m. EDT on April 9, 2025.
The official written notice from the White House has not yet been released so it is unclear under which program (IEEPA or others) this additional 50% will be implemented under.
Update- 4/9/2025- The President issued and executive order on April 8, 2025, "Amendment To Reciprocal Tariffs and Updated Duties as Applied to Low-Value Imports From the People's Republic of China." The order updates the reciprocal rate of duty for goods of China to 84% replacing the previous rate of 34% (for reciprocal tariffs).
IEEPA
Drug/Border Tariffs
- 20% for goods from China
- 25% for goods from Canada unless USMCA Qualified or Canadian Energy products
- 25% for goods from Mexico unless USMCA Qualified
Reciprocal Tariffs
- 10% across the board commencing April 5, 2025
- Specific rates are applicable to countries in Annex 1 commencing April 9, 2025- Suspended Except for China April 7, 2025
- China Rate as of April 9, 2025 is 125%
- Reciprocal tariffs are not applicable when:
- Goods are subject to Section 232- includes Steel/Aluminum/Derivatives/Automobiles/Auto Parts etc.
- Goods are for personal use, donations, information articles including publications, films, posters, etc. under 50 USC 1702
- Goods listed in Annex II
- The value of US content on any goods which have no less than 20% US value
- Reciprocal tariff exemptions for goods in transit prior to April 5 will expire on May 27, 2025
China has issued Retaliatory Tariffs of 34% on top of existing tariffs and other measures. The President has posted on Truth Social that if China does not withdraw it’s 34% increase by April 8, 2025, the US will impose additional tariffs on China of 50% effective April 9.
Note that Annex I of the reciprocal tariffs has been updated with some countries having revised rates. Annex I has been updated and Annex III has been added on our link.
Note that 10% reciprocal tariff applies as of April 5 for goods from all countries and starting on April 9, countries with specific rates will be subject to their specific rate.
CSMS 64649265 issued April 5 addressing reciprocal tariffs. The CSMS message states “To prevent importers from abusing the exceptions for goods that were in transit before April 5, 2025 when it is no longer realistic due to the passage of time, CBP will permit heading 9903.01.28 to be declared only for goods that are entered for consumption or withdrawn from warehouse for consumption, on or after 12:01 a.m. EDT on April 5, 2025, and before 12:01 a.m. EDT on May 27, 2025.”
Dear Valued Client,
JAS Forwarding (USA) Inc. Compliance Team has put together some specific examples to help illustrate our current interpretation of the tariffs.
-Example item 1 costs $100 and is considered an aluminum derivative. The non-US aluminum
content represents 25% (or $25) of the value of the item. The regular rate of duty for this
item is 2.5%. If from China section 301 duty of 25% would apply.
-Example item 2 costs $100 and is not a derivative or any product subject to section 232. The
regular rate of duty for this item is 2.5%. If from China section 301 of 25% would apply.
IEEPA Reciprocal examples for countries listed in Annex 1
- Example 1 from China
o Regular rate of duty 2.5% applies= $2.50
o IEEPA Drug/Border duty of 20% applies = $20.00
o Section 301 of 25% applies = $25.00
o Section 232 derivative applies at 25% on non-US content
Non US content is $25 x .25 = $6.25
o IEEPA Reciprocal tariff rate from China is 34%, but because the item is a Section 232 derivative, this 34% reciprocal tariff does not apply.
o Total duty in this example = $53.75
- Example 2 from China
o Regular rate of duty 2.5% applied = $2.50
o IEEPA Drug/Border duty of 20% applies = $20.00
o Section 301 of 25% applies = $25.00
o IEEPA Reciprocal tariff from China at 34% applies = $34.00
o Total duty in this example = $81.50
- Example 1 from Japan
o Regular rate of duty 2.5% applied = $2.50
o Section 232 derivative applies at 25% on non-US content
Non US content is $25 x .25 = $6.25
o IEEPA Reciprocal tariff rate from Japan is 24%, but because the item is a Section 232 derivative, this 24% reiprocal tariff does not apply.
o Total duty in this example = $8.75
- Example 2 from Japan
o Regular rate of duty 2.5% applied = $2.50
o IEEPA reciprocal tariff from Japan at 24% applied = $24.00
o Total duty in this example = $26.50
IEEPA Reciprocal examples for countries not listed in Annex 1
- Example 1 from any country not listed in Annex 1 (except Canada and Mexico)
o Regular rate of duty 2.5% applied = $2.50
o Section 232 derivative applies at 25% on non-US content
Non US content is $25 x .25 = $6.25
o IEEPA reciprocal tariff for countries not listed in Annex 1 (except Canada and Mexico) is 10%, but because the item is a Section 232 derivative, this 10% reciprocal tariff does not apply.
o Total duty in this example = $8.75
- Example 2 from any country not listed in Annex 1 (except Canada and Mexico)
o Regular rate of duty 2.5% applied = $2.50
o IEEPA reciprocal tariff for countries not listed in Annex 1 (except Canada and Mexico) at 10% applied = $10.00
o Total duty in this example = $12.50
IEEPA examples for Canada and Mexico
- Example 1 from either Canada or Mexico USMCA Qualifying
o Special rate of duty FREE = $0.00
o IEEPA Drug/Border Tariff of 25% does not apply because the item is USMCA qualifying = $0.00
o Section 232 derivative applies at 25% on non-US content
Non US content is $25 x .25 = $6.25
o Total duty in this example = $6.25
- Example 1 from either Canada or Mexico not USMCA Qualifying
o Regular rate of duty 2.5% applied = $2.50
o IEEPA Drug/Border tariff of 25% applied = $25.00
o Section 232 derivative applies at 25% on non-US content
Non US content is $25 x .25 = $6.25
o Total duty in this example = $33.75
- Example 2 from either Canada or Mexico USMCA Qualifying
o Special rate of duty FREE = $0.00
o IEEPA Drug/Border Tariff of 25% does not apply because the item is USMCA qualifying = $0.00
o Total duty in this example = $0.00
- Example 2 from either Canada or Mexico not USMCA Qualifying
o Regular rate of duty 2.5% applied = $2.50
o IEEPA Drug/Border tariff of 25% applied = $25.00
o Total duty in this example = $27.50
For April, we are highlighting Christopher Gottlob, CHB Supervisor in our Detroit, MI branch. Christohper has a bachelor’s degree in supply chain management. Christopher started working at JAS in 2017 as an intern. In 2019, he moved into a brokerage position and found that he enjoyed doing customs entries more than moving freight. Christopher took and passed the Licensed Customs Broker exam in 2020 during Covid, which gave him plenty of time for studying. In 2022, Christopher became the CHB Supervisor in Detroit. Christopher has been able to follow the HTS GRIs and cross reference with CBP rulings to help clients find more appropriate HTS codes and in some cases, that has led to lower duties, saving his client on duties!
Christopher is married to his wife Megan, and they have a 2 year old daughter and are expecting their second in July. Christopher and his family have 2 cats, and a dog. He loves to go Detroit Lions games as a season ticket holder, golfing and enjoying his cabin in north Michigan with family and friends.
Christopher is another great example that People Make the Difference!
JAS Forwarding (USA) Inc. Compliance Project Manager, Scott Cassell in partnership with Sheryl Roberts, Director of Ocean Services, and Vivian Brunialti, Trade-Lane Director, presented at a client event in Miami, FL on March 27. Ocean trends from Asia to the US and LATAM were discussed along with all the tariffs in the news.
Pictured left to right, Scott Cassell, Vivian Brunialti, and Sheryl Roberts
A California based importer have agreed to resolve allegations that they violated the False Claims Act. The importer evaded customs duties on imports from PRC. The importer faces paying $8.1 Million to settle the violations.
Click below to read more.
Dear Valued Client,
We wanted to take an opportunity to clarify that IEEPA Drug/border tariffs (20% effective March 4, 2025 for China), and (25% effective March 4 for Canada and Mexico) are still in effect. IEEPA Drug/border tariffs are distinctly different than the new IEEPA Reciprocal tariffs announced yesterday.
China
- IEEPA Reciprocal tariffs from China (34%) apply effective April 9.
- If section 232, steel, aluminum, derivatives, autmobiles, and auto parts is applicable, then section 232 (25%) tariff supersedes the IEEPA Reciprocal tariffs at 34%.
- Section 301 for China still applies .
- IEEPA Drug/border tariffs from China (20%) still applies.
Canada/Mexico
- Goods from Canada and Mexico are exempt from the IEEPA Drug/border tariffs if qualifying for USCMA.
- If goods are not qualifying for USMCA, then IEEPA Drug/border tariffs apply (25%).
- If the IEEPA Drug/border tariff is terminated or suspended, USMCA qualifying goods will be exempt from IEEPA Reciprocal tariffs and non-USMCA goods will be subject to a 12% IEEPA reciprocal tariff.
- No dates have been provided at this time.
Additional updates will follow once they are available.
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