JAS USA COMPLIANCE

News & Insights from JAS Worldwide Compliance

JAS Forwarding (USA), Inc.

6165 Barfield Road
Atlanta GA, 30328
United States
Tel: +1 (770)688-1206
Fax: +1 (770)688-1229

UPDATE CONCERNING IEEPA DRUG/BORDER TARIFFS FOR CHINA, CANADA, AND MEXICO (ORIGINALLY ANNOUNCED FEBRUARY 1)

April 3, 2025

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.

CLIENT ADVISORY- UPDATED CONCERNING IEEPA DRUG/BORDER TARIFFS FOR CHINA, CANADA AND MEXICO
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Latest News

RECIP UPDATES JULY 2025

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:

VIETNAM DEAL

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.

IEEPA UPDATES JULY 2025

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.  

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