With the reciprocal tariff deadline of July 9th approaching next week, and lots of other news topics being communicated recently, we wanted to bring you a general update:
1. Possible De Minimis Ban?
One of the bills working its way through Congress at the moment is the One Big Beautiful Bill – a massive bill encompassing spending and saving projects that will shape the US economy for years to come. The version that’s been passed by the House also includes the repeal of Section 321 – De Minimis – and incorporates fines of $5000 for the first violation and twice as much for subsequent violations. The Senate version also includes the repealing Section 321. There now needs to be some reconciliation to align the differences between the two bills but once complete, and if passed, it will seal the fate of De Minimis.
2. UFLPA Whistle-Blower Website
A new Forced Labor Allegation site has been launched by CBP to make it easier for potential instances of forced labor to be reported. Anonymous tips can be submitted directly to CBP’s team for evaluation and follow-up as appropriate. This will enhance CBP’s ability to enforce the UFLPA and continue to reduce forced labor utilization. The platform is here. The old Trade Violations Reporting system now redirects users to the UFLPA Allegation Portal too.
Recent industry discussions have highlighted CBP’s emphasis on regulatory enforcement, particularly around UFLPA, tariff revenue valuation, origin issues, and steel and aluminum origins. We encourage you to actively seek supply chain and mapping tools to de-risk your operations and leverage Alba to get guidance on navigating tariff complexities. If you want to proactively scan and identify potential areas of concern within your own sourcing supply lines, please reply to this email so we can discuss the options you have available to you.
3. Reciprocal Tariff Deadline – July 9th
We’re hearing around 20 or so country trade deals are in various stages of completion, but we’re expecting the outcomes to be frameworks versus finalized tariff levels. We don’t expect many of those to be completed by next week. We’re leaning toward an extension of the reciprocal tariffs for the majority of the top US trading-partner countries – perhaps up to Labor Day – to give more time for more details to be determined.
News this morning highlights threats to increase tariffs on products from Japan due to the perceived trade discussion imbalance, but, as yet, nothing formal has been communicated.
As a reminder: China’s current tariff status has an end date of August 12th.
4. Section 232 Tariffs Expanded to More Steel Derivative Products
We shared this update recently and have now updated our FAQ to include more support for your Section 232 questions. You can view our latest FAQ here. The original Section 232 update from the Commerce Department is here. Annex 1 has been updated to include:
(a) combined refrigerator-freezers under HTSUS subheading 8418.10.00
(b) small and large dryers under HTSUS subheadings 8451.21.00 and 8451.29.00
(c) washing machines under HTSUS subheadings 8450.11.00 and 8450.20.00
(d) dishwashers under HTSUS subheading 8422.11.00
(e) chest and upright freezers under HTSUS subheadings 8418.30.00 and 8418.40.00
(f) cooking stoves, ranges, and ovens under HTSUS subheading 8516.60.40
(g) food waste disposals under HTSUS subheading 8509.80.20
(h) welded wire rack under statistical reporting number 9403.99.9020.
5. Trade Negotiations with Canada – On Again
After a brief off-period over the weekend, trade negotiations with Canada will continue. The pause was in response to the approaching commencement date of Canada’s Digital Services Tax it was planning on initiating on June 30th. President Trump announced trade negotiations with Canada would cease and additional tariffs would be implemented on products from Canada last Friday, but over the weekend the leaders of the two countries spoke, Canada rescinded the digital services tax, and negotiations we’re communicated as being back on again.
6. APHIS Dashboard for US Data on Wood Packing Material
A new dashboard has been launched by the US Department of Agriculture’s Animal and Plant Health Inspection Service (APHIS) that presents a dynamic view of import trends, compliance rates, inspection results, and treatment facility certifications for wood packing materials so users can make more informed decisions on where they source their materials. The dashboard is available here. APHIS will hold an instructional webinar to guide users on how to use the system on July 10th – you can register here.
We will continue to monitor these situations and bring you updates and opinion as we have them.
