Tariff Talk

Relief was felt in tariff escalations today as President Trump and Mexican President Claudia Sheinbaum agreed to a 30-day pause to focus on border issues. Similarly, Canadian Prime Minister Justin Trudeau reached a comparable agreement near the close of the business day.

With these pauses in place, the updated tariff plan set to take effect on February 4 at 12:01 AM will now focus solely on China, imposing an additional 10% tariff on covered goods from China and Hong Kong. In response, U.S. Customs and Border Protection (CBP) has released initial guidance on import processing procedures. The list of specific HTS numbers is not yet available.

According to the guidance, the new tariffs will not be eligible for drawback or de minimis treatment. Limited exceptions include certain donations intended to relieve human suffering and informational materials, such as publications, films, photographs, and artwork.

Details regarding the timing of impacted shipments are still being clarified. Generally, goods from China or Hong Kong that were loaded onto a vessel at the port of loading or in transit on the final mode of transport before February 1 and entered for consumption before March 7 will be exempt from the additional tariff.

Further updates from the White House and U.S. Customs and Border Protection are expected. OCEANAIR will continue to monitor developments and keep our clients informed.