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Expeditors International Of Washington — US Customs Market Update Webinar (February 2025)
34 slides from Expeditors International Of Washington's conference presentation, Feb 25, 2025
Slide 1: US Customs Market Update
25 February 2025 US CUSTOMS MARKET UPDATE
Slide 2: Expeditors Webinar
2 EXPEDITORS WEBINAR 45 Mins of Content Submit questions How do I receive How do I get in the Q&A window the slides? information on future webinars? Q&A to follow We will answer them at After the webinar, you will Subscribe to receive the end of the webinar be emailed a short webinar invites, local
Slide 3: Speakers
3 SPEAKERS Madeleine Brenda Veigel Smith Senior Director Customs, Global Director, The Americas Government Outreach Ted Henderson Senior Advisor, • Regional Manager Customs Customs, The Americas Property of Expeditors International of Washington, Inc. and its subsidiaries. Reproduction by written au
Slide 4: Disclaimer
4 DISCLAIMER The contents of this presentation are made available for informational purposes only and should not be relied upon for any legal, business, or financial decisions. Expeditors does not guarantee, represent or warrant any of the contents of this presentation. The contents are based on inf
Slide 5: Agenda
5 AGENDA Most recent US trade actions • Timeline • China • Canada and Mexico • Aluminum and Steel What is the global response? Frequently asked questions What is on the horizon? • Reciprocal Tariffs, DSTs and the Maritime Industry • What is the President saying? Key Takeaways Property of Expeditors
Slide 6: Most Recent US Trade Actions
Mn TT lil MOST RECENT US TRADE ACTIONS y Ii I
Slide 7: Timeline of US Actions
OPEN ITEMS: • GSP Expiration • Section 301 Lawsuit 7 TIMELINE OF US ACTIONS 02/01: US issues Executive Orders on imports from CA/CN/HK/MX 02/13:Recipriocal 07/01: EU/UK Large Early Oct: Trade and Tariff Civil Aircraft Section Comment Period 01/01: Section Memo issued 04/01:America 301 Suspension for
Slide 8: US Imports from China
8 US IMPORTS FROM CHINA Implemented on 04 February 2025 • President Trump issued Executive Order on 01 February 2025 - Effective 04 February 2025 • Implemented under IEEPA (International Emergency Economic Powers Act) • 10% ad valorem tariff on products of China and Hong Kong o In addition to “any o
Slide 9: De Minimis Imports from China
9 DE MINIMIS IMPORTS FROM CHINA Paused – no known implementation date US law allows certain goods to be imported duty-free if their value does not exceed $800 USD per person per day. This exemption, known as the De Minimis or Section 321 exemption, also applies to trade remedy tariffs like Section 3
Slide 10: US Imports from Canada
10 US IMPORTS FROM CANADA Paused until 04 March 2025 • 25% ad valorem tariff on all products of Canada except energy or energy resources • 10% ad valorem tariff on “energy or energy resources” from Section 8 of Executive Order 14156 of 1/20/25 • “The term "energy" or "energy resources" means crude o
Slide 11: US Imports from Mexico
11 US IMPORTS FROM MEXICO Paused until 04 March 2025 • 25% ad valorem tariff on products of Mexico • If retaliatory tariffs implemented, tariff rates may increase • FTZ products must be admitted as privileged foreign unless eligible under domestic status • No drawback will be available for these dut
Slide 12: All Countries: Steel and Aluminum
12 ALL COUNTRIES: STEEL AND ALUMINUM Planned Implementation of 12 March 2025 In 2018, President Trump imposed tariffs of 25% on steel and 10% on aluminum imports under Section 232 of the Trade Expansion Act of 1962, which allows adjustments for national security. Both the Trump and Biden administrat
Slide 13: Derivative Notes
13 DERIVATIVE NOTES • The proclamations for the Section 232 tariffs on steel and aluminum articles include an annex that identifies derivative aluminum and steel articles by HTSUS that will subject to the Section 232 tariffs. • A steel or aluminum derivative refers to products that are made from or
Slide 14: What Is the Global Response?
Mn TT lil WHAT IS THE GLOBAL RESPONSE? y Ii I
Slide 15: Current Global Responses
15 CURRENT GLOBAL RESPONSES The threat of tariffs has led to different responses. Some countries are negotiating with Trump, diversifying trade partners, preparing retaliatory measures, considering legal action through the WTO, or a combination of these strategies. EUROPEAN UNION TAIWAN JAPAN SOUTH
Slide 16: China Imports from US
16 CHINA IMPORTS FROM US • On 04 February 2025 China's Tariff Commission of State Council announced that additional tariffs would be imposed on certain commodities originating from US starting on 10 February 2025 o 15% additional tariffs on coal and liquefied natural gas included in 8 HS Subheadings
Slide 17: Canada Imports from US
17 CANADA IMPORTS FROM US Paused until 04 March 2025 • The Canadian government has paused for thirty days their planned 25% tariffs on $30 billion in goods imported from the United States (US) - based on date of direct shipment. • Tariffs only apply to goods originating from the US o Only products w
Slide 18: Mexico Imports from US
18 MEXICO IMPORTS FROM US Paused until 04 March 2025 "I've instructed my economy minister to implement the plan B we've been working on, which includes tariff and non- tariff measures in defense of Mexico's interests." President Sheinbaum (Mexico) on 01 February 1 2025 "We [...] agreed to immediatel
Slide 19: In Summary
19 IN SUMMARY US TRADE ACTIONS GLOBAL RESPONSE Legal Country Status Country Status Basis All Imports China IEEPA - Implemented Selected US China Implemented Fentanyl Imports All De China IEEPA - Paused – No Date Selected US Canada Paused to 04 March 2025 Minimis Fentanyl Imports All Imports Canada I
Slide 20: Frequently Asked Questions
Mn TT lil FREQUENTLY ASKED QUESTIONS y Ii I
Slide 21: Understanding Stacked Tariffs
21 UNDERSTANDING STACKED TARIFFS Widget Steel Widget EXAMPLE EXAMPLE Country of Origin = China Country of Origin = Canada 1 2 Value = $100 Value = $100 Duty Rate Duty Paid Duty Rate Duty Paid Chapter 1-97 HTS: 15% $15 Chapter 1-97 HTS: 0% - Under $0 General Classification General Classification USMC
Slide 22: Understanding Country of Origin
22 UNDERSTANDING COUNTRY OF ORIGIN The country from which the article was COUNTRY OF The country from which COUNTRY OF shipped to the US having last been a ORIGIN the article originated EXPORT part of the commerce of that country • Determination may be simple or very complex • Per 19 USC 1484: The i
Slide 23: What Is on the Horizon?
Mn TT lil WHAT IS ON THE HORIZON? y Ii
Slide 24: Reciprocal Trade and Tariffs
24 RECIPROCAL TRADE AND TARIFFS (ISSUED 13 FEBRUARY 2025) • To reduce the trade deficit and address perceived unfair trade practices, President Trump announced the "Fair and Reciprocal Plan," which aims to establish reciprocal tariffs with each foreign partner. • Following the submission of the Amer
Slide 25: Reciprocal Analysis Example
25 RECIPROCAL ANALYSIS EXAMPLE Source: Global Trade Alert. (2025, February 21). Attracting the ire of the next US administration. Global Trade Alert. https://globaltradealert.org/reports/attracting-the-ire-of-the-next-us-administration Property of Expeditors International of Washington, Inc. and its
Slide 26: Source: Trump tariffs, The New York Times
26 Source: Smith, J. (2025, February 13). Trump tariffs. The New York Times. https://www.nytimes.com/2025/02/13/us/politics/trump-tariffs.html Property of Expeditors International of Washington, Inc. and its subsidiaries. Reproduction by written authorization only.
Slide 27: Digital Services Taxes
27 DIGITAL SERVICES TAXES (ISSUED 21 FEBRUARY 2025) • President Trump announced that "where a foreign government, through its tax or regulatory structure, imposes a fine, penalty, tax, or other burden that is discriminatory, disproportionate, or designed to transfer significant funds or intellectual
Slide 28: 301 Action on Maritime, Logistics, and Shipbuilding Sectors
301 ACTION ON MARITIME, LOGISTICS, AND 28 SHIPBUILDING SECTORS (ISSUED 21 FEBRUARY 2025) • A previous Section 301 investigation found China’s acts, policies, and practices to be unreasonable and to burden or restrict US commerce • USTR proposes to impose fees and restrictions on international mariti
Slide 29: Recent Statements on Tariffs
29 RECENT STATEMENTS ON TARIFFS 21 January 2025 20 January 2025 At a White House press conference, President Trump stated that his administration is considering a 10% President Trump is still considering imposing a tariff on goods from China, “probably February 1st”. During the same news conference
Slide 30: FCPA and Expeditors
30 FCPA AND EXPEDITORS On 10 February 2025, the Trump Administration ordered a 180-day pause in enforcing the Foreign Corrupt Practices Act (FCPA), a law since 1977 that prohibits US persons or companies from bribing foreign officials to obtain or retain business. This pausing of enforcement of the
Slide 31: Key Takeaways
31 KEY TAKEAWAYS Actions to Consider Today Principles ❑ What will you need to prove the steel/aluminum content in any imported derivatives? Supplier • Commit to tracking trade developments certification, bill of material, product specification, • Remember any actions taken in the US will cause etc.
Slide 32: Certificate of Completion
32 CERTIFICATE OF COMPLETION Continuing Education Credit to Support Your US Customs Broker License and Your NEI CCS Certification This webinar has been approved for 1.0 credits by the NCBFAA Educational Institute Completion code for webinar NEI-022025-6-CG94 Code Expires: 21 February 2026 Original P
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Slide 34: Opportunities for Input
49 OPPORTUNITIES FOR INPUT 1. USTR Seeks Public Comment on Proposed Actions in Section 301 Investigation of China’s Targeting of the Maritime, Logistics, and Shipbuilding Sectors for Dominance. In a Section 301 investigation, USTR found China’s acts, policies, and practices to be unreasonable and to
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