Update:

President Trump today issued an executive order effectively ending the IEEPA reciprocal tariffs “as soon as practicable” while keeping the current suspension of de minimus in place.

A Presidential proclamation was also issued today to implement a 10% across the board tariff under Section 122 of the Trade Act of 1974, replacing the reciprocal tariff. EO expected to follow. 

The new 10% tariff is effective on Feb 24th at 12:01 AM.  It will have an “in transit” provision for shipments already on the water.  Goods that qualify under USMCA will be exempt from Section 122 tariff as well as other exemptions from the reciprocal tariff that will carry over to the new tariff.

We are expecting Customs to issue guidance on the executive order and the Presidential proclamation by Monday. Not guaranteed of course, but should be before Tuesday.

Ending Certain Tariff Actions – The White House

Imposing a Temporary Import Surcharge to Address Fundamental International Payments Problems – The White House

Update:

President Trump in a press conference today, announced that he plans to impose a blanket 10% global tariff on top of all other tariffs, under Section 122 of the Trade Act of 1974. His administration is also looking at using Section 301 and 232 to raise other tariffs.

He also stated that since the Supreme Court didn’t address refunds, that he’ll try to block them or tie them up in court.

The US Supreme Court has ruled 6-3 that President Trump does not have the authority to unilaterally assess tariffs based upon declaring a national emergency under IEEPA.

This affects any tariff including reciprocal tariffs, imposed by emergency action.

We are pending guidance from US Customs on how to proceed going forward and the refund process, which we assume will be forthcoming soon.

This ruling does not affect tariffs under Section 301 (China) or Section 232 (metals etc.)

We will post clarifications as more information comes in.

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