We have a number of topics to update you about regarding tariffs – here are the details:
1. IEEPA Tariffs
Last week we communicated that the Court of International Trade had issued an injunction of the IEEPA tariffs – the Fentanyl tariffs for Canada, Mexico, and China, as well as the current 10% Reciprocal Tariffs for all other countries (but not tariffs related to Sections 301 or 232.) The immediate appeal filed by the Trump Administration has been approved by the Court of Appeals and the ruling is paused or stayed while the court considers the request filed by the administration.
The petitioners now have until June 5th to file their response with the Court of Appeals, and then the Trump Administration has until June 9th to respond. The Court of Appeals will then take some time to make a decision on the information. We expect this could take up to a week.
This means the IEEPA tariffs remain in effect and will still be due on shipments clearing customs into the USA right now. As a reminder, the current IEEPA tariff levels are outlined in our latest FAQ document here.
It’s worth remembering that the Trump Administration still has other avenues it can use to enforce certain tariffs – Section 301 or Section 232 for example – should its appeal fail.
We asked Erik Smithweiss at GDLSK for his opinion. His take: “As of today, no specific action is required by importers to preserve rights to potential refunds. However, depending upon the length of an appeal and future developments, it will likely become necessary for importers to file protests after liquidation of affected entries and/or file suit in the CIT to preserve refund rights. It is recommended that importers monitor their entries and liquidation status through ACE reports or other means to ensure that timely protests are filed when needed.” You can read the full post on the GDLSK website here.
2. IEEPA In-Transit Provision
CSMS 65201773 was issued on Friday, May 30th, 2025, providing updated guidance on the In-Transit Exclusion from the IEEPA Reciprocal Tariffs, detailing three specific scenarios:
- For those countries without a country-specific Reciprocal Tariff Rate:
Articles from any country that were:- (1) loaded onto a vessel at the port of loading and in-transit on the final mode of transport prior to entry into the United States before 12:01 AM EDT on April 5th, 2025, AND
- (2) entered for consumption, or withdrawn from warehouse for consumption, between 12:01 AM EDT on April 5th, 2025, and 12:01 AM EDT on June 16th, 2025
Declare 9903.01.28 / Free
- For those countries with a country-specific Reciprocal Tariff Rate (excluding China):
Articles from any country with a specific rate of duty (9903.01.43-9903.01.76) that were:- (1) loaded onto a vessel at the port of loading and in-transit on the final mode of transport between 12:01 AM EDT on April 5th, 2025, and 12:01 AM EDT on April 9th, 2025, AND
- (2) entered for consumption, or withdrawn from warehouse for consumption, before 12:01 AM EDT on June 16th, 2025
Declare 9903.01.25 / 10%
- For shipments from China (under 9903.01.63):
Articles the product of China that were:- (1) loaded onto a vessel at the port of loading and in-transit on the final mode of transport after 12:01 AM EDT on April 9th, 2025, and before 12:01 AM EDT on April 10th, 2025 AND
- (2) are entered for consumption, or withdrawn from warehouse for consumption, before 12:01 AM EDT on June 16th, 2025
Declare 9903.01.25 / 10%
When reviewing the date of loading, please keep in mind that the date and time the cargo was loaded at the origin port are in LOCAL time. For example, cargo loaded at 11:58 AM Shanghai time is approximately 11:58 PM the previous day in New York.
The Feeder Vessel clarification issued by CBP recently excludes cargo that is “transloaded” from one vessel to another from the in-transit exemption under 9903.01.28. This is being disputed with CBP by the NCBFAA.
3. Section 301 Exclusions
The exclusions under HTS 9903.88.69 and 9903.88.70, originally set to expire on May 31st, 2025, have been extended through August 31st, 2025. These include 164 exclusions previously extended on May 30th, 2024 and 14 exclusions covering certain solar manufacturing equipment that were originally announced back on September 18th, 2024.
4. Section 232 (Steel and Aluminum)
The President also announced on Friday, May 30th, 2025, that the Section 232 Steel and Aluminum tariffs will be raised to 50%, effective Wednesday, June 4th, 2025. The announcement was made during the President’s endorsement of Nippon Steel’s acquisition of U.S. Steel in Pittsburgh. We’re still awaiting the communication from CBP on the details.
