We wanted to bring you the latest status for tariffs after a number of news headlines came out last week – here are the details:
1. US-China Deal Framework
President Trump confirmed a rate of 55% of China-origin goods. It’s key to note that this figure is a summation of all of the currently valid tariffs levied on products coming from China: 10% reciprocal tariff, 20% fentanyl-related tariff, and the Section 301 tariff which is around 25% for most products. The two countries have agreed a framework for continuing negotiations and loosened some other policies but there’s no meaningful update to tariffs just yet. Results from the next stage of negotiations is due between now and August.
2. Federal Appeals Court Allows Reciprocal Tariffs to Remain in Place While Administration’s Appeal is Pending
Last month, the Court of International Trade blocked the Trump Administration’s IEEPA and Fentanyl tariffs – a move that was immediately appealed by the Trump Administration. The Court of Appeals approved the appeal and the ruling was paused. The Court of Appeals has now considered the appeal and has decided to allow these tariffs to remain in place while the Administration’s appeal continues to move through the legal process.
This means the IEEPA tariffs remain in effect and are still due on shipments clearing customs into the USA right now. Current IEEPA tariff levels are outlined in our latest FAQ document here.
It’s also worth remembering that the Trump Administration still has other avenues it can use to enforce certain tariffs – Section 301 or Section 232 for example – should its appeal ultimately fail.
3. The Department of Commerce’s Bureau of Industry and Security has Announced New Section 232 Tariffs Applicable on Some Appliances
Additional steel derivative products will be subject to 50% tariffs under Section 232 as of Monday, June 23rd – read the original notice here. Annex 1 is being 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.
We will continue to monitor these situations and bring you updates and opinion as we have them.
