U.S. Trade Tariffs: New Developments and Challenges for Importers

As global trade continues to grapple with unprecedented disruptions, important developments are emerging regarding potential new tariffs in the U.S. supply chain landscape. Executives from Flexport recently indicated that new tariffs might be introduced even before the expiration of current duties, which could further intensify the challenges faced by importers. Emerging Tariff Landscape Still in Flux During a recent online discussion titled "Tariff Trends 2026: Expert Insights on the Evolving U.S. Tariff Landscape," trade and customs experts discussed the shifting tariff environment. Proposed adjustments and new tariffs could arise from forced labor enforcement concerns, modifications to Section 232 metal tariffs, ongoing uncertainties regarding USMCA negotiations, and ongoing legal disputes surrounding tariffs established under the International Emergency Economic Powers Act (IEEPA). Marcus Eeman, Flexport's director of customs, stated, "The July 1 deal is looking unlikely, but benefits continue," suggesting that while major changes are not expected during the next USMCA review phase, existing preferences will persist. Proposed Tariffs Addressing Forced Labor Concerns One key issue highlighted in the webinar involves the drafting of a new Section 301 tariff program aimed at countries with insufficient enforcement against forced labor. The U.S. Trade Representative (USTR) is reviewing plans that could impose a 10% tariff on 13 designated countries and the European Union, with an increased rate of 12.5% for 46 other countries. Notably, most nations currently engaged in trade agreements with the U.S. would qualify for the lower tier of tariffs. Flexport clarified that many products already exempted under previous IEEPA tariffs, including critical minerals and pharmaceuticals, would be unaffected by these proposed tariffs. Furthermore, items qualifying under USMCA and DR-CAFTA would maintain exemption from these duties. Legal Challenges Anticipated Over New Tariff Initiatives The webinar also delved into the potential for legal action against the new Section 301 tariffs. While proponents assert that Section 301 permits the imposition of tariffs based on trade practice investigations detrimental to U.S. interests, opponents argue that extending tariffs to practically all U.S. imports could conflict with legislative intent and face scrutiny under the Supreme Court's "major questions" doctrine. Eeman articulated that, unlike the earlier Section 301 tariffs on imports from China, which were based on substantial findings of intellectual property theft, the new forced labor tariffs might encounter more rigorous examination over their appropriateness as a trade remedy. Adjustments to Section 232 Tariffs The discussion also touched on recent changes to Section 232 tariffs on steel and aluminum. The administration has introduced new duty reductions for certain equipment sectors, including agricultural tools and residential HVAC systems. The required threshold for U.S.-made metal content to qualify for reduced duties has been lowered from 95% to 85%, easing conditions for manufacturers seeking to benefit from these tariff reductions. Countries within trade agreements, such as those in the European Union, Japan, and South Korea, may qualify for capped tariffs of 15% on specific industrial products. Additionally, products classified under USMCA may also benefit from these updated duty calculations. Ongoing Refund Processes for IEEPA Tariffs Jenn Park, Flexport's trade advisory director, provided insights regarding the ongoing disputes over IEEPA tariffs and the Customs Automated Processing Engine (CAPE) refund system. The government's appeal against a Court of International Trade order demanding refunds has created uncertainty regarding how importers can reclaim duties on past entries. Despite this, CAPE continues processing refund applications, with nearly $95 billion in claims accepted and around $23.68 billion already refunded to the Treasury. CBP is set to enhance Phase 2 of CAPE on June 29 by expanding coverage to reconciliation entries, with Phase 3—focused on finally liquidated entries—expected to roll out later this summer. For further details, visit the original post on FreightWaves.