Tariff Talk

A moment of relief in tariff escalations came today as President Trump and Mexican President Claudia Sheinbaum agreed to a 30-day pause to focus on border issues.

As Monday’s business hours (EST) neared their end, plans remained in place for new tariffs on Canada (25%) and China (10%) to take effect on February 4 at 12:01 AM. U.S. Customs and Border Protection (CBP) has released initial guidance on import processing procedures.

Both guidance documents confirm that the new tariffs will not be eligible for drawback or de minimis treatment. These tariffs will be applied in addition to any existing duties. Limited exceptions include certain donations intended to relieve human suffering and informational materials, such as publications, films, photographs, and artwork. Notably, energy and energy resources from Canada will be subject to a reduced rate of 10%.

Clarification is ongoing regarding the timing of impacted shipments. 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 may qualify for an in-transit exception, provided they are entered for consumption before March 7. For Canadian shipments, goods loaded onto a vessel at the port of loading or in transit on the final mode of transport before February 1 may also qualify for an in-transit exception, subject to CBP certification requirements.

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.