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All of the comments in this advisory are subject to change and based on our current interpretation. The President issued executive orders yesterday, April 2. The orders utilize International Economic Emergency Power Act (IEEPA) authority to impose a universal 10% tariff on all countries except some specific countries with greater rates. Additionally, the list of products subject to section 232 tariffs on automobiles/auto parts has been released. The Department of Commerce also added two new products to the section 232 derivative aluminum articles.
IEEPA reciprocal tariffs of 10% ad valorem will be added for all countries. These will be effective at 12:01 am EDT April 5, 2025. Note that goods loaded onto a vessel at the port of lading in the final mode of transit prior to April 5, will not be subject to the IEEPA reciprocal tariffs.
IEEPA reciprocal tariffs with specifc rates (for countries listed in Annex I) will be effective at 12:01 am EDT on April 9, 2025. Note that goods loaded onto a vessel at the port of lading in the final mode of transit prior to April 9, will not be subject to the IEEPA reciprocal country specific rate.
There are published exceptions which define products that are excluded from the IEEPA reciprocal tariffs. Goods for personal use, donations, informational articles including publications, films and posters etc., under 50 USC 1702 are exempt.
Steel, aluminum, and derivatives, automobiles and auto parts under existing section 232 tariffs are exempt from the IEEPA reciprocal tariffs (note all existing tariffs still apply). Additionally, goods listed in Annex II (linked below) of the order are exempt, which includes items such as copper, pharmaceuticals, semiconductors, lumber, certain critical minerals, and energy/energy products. We believe these items are going to be addressed separately. The value of US content on any goods which have no less than 20% US value will be exempt from IEEPA reciprocal tariffs.
Section 232 for automobile and auto parts annex has been released. Section 232 for automobile tariffs are effective 12:01 am EDT April 3, 2025 with 25% tariffs applicable. Section 232 for auto parts tariffs are effective 12:01 am EDT May 3, 2025 with 25% tariffs applicable. The full list of applicable HTS codes are linked below.
Goods from Canada and Mexico that currently qualify for USMCA are exempt from the IEEPA border tariffs. However, upon termination/suspension of IEEPA border tariffs (25%), USMCA goods will be exempt from the IEEPA Reciprocal tariffs and non-USMCA goods will be subject to 12% IEEPA tariffs. No dates have been provided at this time.
Finally, the Department of Commerce has added two items to the Aluminum Derivatives list which include aluminum cans (7612) and aluminum cans containing beer (2203). These are effective 12:01 am EDT April 4, 2025 with 25% tariffs applicable.
Note that goods admitted to Foreign Trade Zones after 12:01 eastern on April 9 must be admitted in privileged foreign status. It is noted that goods that are eligible for admission to an FTZ under domestic status will be exempt from the tariffs.
Update 4-7-2025- IEEPA reciprocal tariffs are eligible for drawback. Unlike in previous IEEPA action, there is no express prohibition of claiming duty drawback on these tariffs.
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.
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