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PRIVILEGED AND CONFIDENTIAL: ATTORNEY-CLIENT COMMUNICATIONS

CTDA MEMBER UPDATE ON THE STATUS OF ADDITIONAL US TARIFFS PLACED ON IMPORTED PRODUCTS BY THE TRUMP ADMINISTRATION

In view of President Trump yesterday pausing the imposition of the “reciprocal” tariffs, this will summarize the current tariff requirements that US importers must satisfy:

1. With very limited exceptions, imports from all countries are subject to a 10 percent ad valorem (on the value) tariff. This is in addition to the “regular” US tariffs which apply to your products;
2. The “reciprocal” tariff list that we earlier provided to you in Annex I to President Trump’s April 2nd Executive Order has been “paused” for ninety days. All of the 86 listed countries with higher individual tariffs are instead now subject to the “flat” ten percent additional tariff, including those from the European Union, including Spain and Italy;
3. Existing 25 percent additional US tariffs on steel, aluminum and certain “derivative” products remain in effect as do sectoral tariffs on vehicles and certain automotive parts;
4. Mexico and Canada are not subject to the 10 percent additional tariff. Their products are, however, covered by a preexisting 25 percent US tariff, EXCEPT for their products that qualify as “originating” under USMCA/NAFTA;
5. Imports into the US from China will be assessed a 125 percent tariff across the board. It is uncertain at this time whether this new tariff will encompass, or be added to, the 20 percent tariffs assessed China earlier this year. The new tariff is in addition to the AD/CVD duties and “ordinary” MFN US tariffs applicable to Chinese goods;
6. We have attached guidance from US CBP on how to report the new tariffs in a Cargo Systems Messaging Service (“CSMS”) advisory issued at 10:30 last evening. Please note that you will need two tariff classifications, one that is the “regular” classification (such as in HTS Chapter 69 for ceramic tile) and in HTS Chapter 99 classifying the goods according to the new tariffs.

Should you have any questions, please contact Rick Church or CTDA Legal Counsel Robin Grover.