Breaking Trade News: Tariff Stacking, Auto Tariff Credit, 301 Report

Here is a recap of the latest customs and international trade news:    

Administration  

• President Trump signed a Proclamation amending tariffs on automobiles and auto parts. Automakers who build cars in America and import parts to do so will get a partial credit against the costs of 25% Section 232 tariffs on non-USMCA qualifying parts. 
• President Donald Trump issued an Executive Order clarifying the applicability of recently imposed tariffs, specifically tariff “stacking.” Goods subject to Section 232 tariffs on automobiles will not also be subject to Canada and Mexico IEEPA tariffs or 232 tariffs on steel & aluminum. Goods subject to Canada and Mexico IEEPA tariffs will not also be subject to 232 steel & aluminum tariffs. 

Customs and Border Protection (CBP) 

• CBP updated its tariff FAQs clarifying that exemptions from reciprocal tariffs for goods that were in transit on April 5 or 9 only apply to ocean vessels.
• CBP updated its IEEPA FAQs clarifying that if you are subject to aluminum and steel tariffs, you are not subject to reciprocal IEEPA tariffs.
• CBP ruled that a partial duty exemption for U.S.-origin materials exported to a third country for assembly will not apply to certain components used in solar cells and panels.
• According to a CSMS message from CBP, customs brokers will be able to file Type 11 informal entries for articles under $2,500, even if they are categorized in Chapter 99 and are subject to tariffs, from all countries.
• CBP Executive Director for the Office of Trade Relations George Bogden has departed from the agency.
• CBP intercepted a shipment of counterfeit cigarettes valued at more than $729,000.
• CBP officers in Chicago seized counterfeit watches worth over $9 million and 4,345 counterfeit licenses.

Bureau of Industry and Security (BIS)

• BIS issued an interim final rule announcing that new tariff schedule subheadings may be added to the list of derivatives subject to Section 232 steel and aluminum tariffs up to three times every year. The agency will open a “submissions window” In May, September, and January every year.  

Court of International Trade (CIT)  

• A honey manufacturer filed a complaint at the CIT alleging that CBP unlawfully detained 11 shipments of honey for nearly a year without explanation or justification. 

United States Trade Representative (USTR)

• USTR released its 2025 Special 301 Report on the adequacy and effectiveness of U.S. trading partners’ protection and enforcement of intellectual property (IP) rights.

U.S. International trade Commission (USITC)

• The USITC determined that a U.S. industry is materially injured by reason of imports of ferrosilicon from Brazil, Kazakhstan, and Malaysia that are sold in the United States at less than fair value and subsidized by the government.
• The USITC determined that a U.S. industry is materially injured by reason of imports of epoxy resins from South Korea, Taiwan, and Thailand that are sold in the United States at less than fair value and subsidized by the government.

Federal Maritime Commission (FMC)

• A FMC administrative law judge denied a complaint by Texas importer against Chinese ocean carrier COSCO Shipping Lines Co., ruling there was insufficient evidence that COSCO charged it $1.2 million in unfair demurrage, detention and storage fees.

Department of Justice (DOJ)

• The DOJ announced that it has declined the prosecution of Universities Space Research Association (USRA) after it self-disclosed criminal violations of U.S. export control laws committed by its former employee.

Congress

• The U.S. Senate voted on a resolution that would end the trade deficit emergency that the president used to impose tariffs on Canada, Mexico, and China. The measure did not pass. 
• The House Homeland Security Committee released its budget reconciliation recommendations, which included over $6B in increased spending for CBP. 

Industry News 

• Labor group International Rights Advocates filed a lawsuit against Starbucks on behalf of eight individuals who were allegedly forced to work on coffee plantations in Brazil. The complaint alleges that Starbucks knowingly benefitted from this slave labor. 
• Israel-based ZIM Integrated Shipping Services announced the suspension of its service between Central China and the US West Coast, citing ongoing market instability.