U.S. Trade Policy and Tariff Actions
- CBP confirms importers will be able to apply for IEEPA tariff refunds starting 20 April: Last week, CBP published CSMS guidance confirming that Phase 1 of the Consolidated Administration and Processing of Entries (CAPE) tool will launch on 20 April in the Automated Commercial Environment Secure Data (ACE) portal. In phase 1, CAPE will be able to process IEEPA refunds for certain unliquidated entries and certain entries within 80 days of liquidation. More complex scenarios including finally liquidated entries (i.e., entries where the standard 90-day window for voluntary reliquidation has closed) and entries involving antidumping and countervailing duties are intended to be addressed in subsequent phases. There is no timeline available for launch of subsequent phases.
- PMMI member companies acting as the importer of record (IOR) should work with their customs broker to:
- Ensure that their entity or authorized customs broker have an established ACE Secure Data Portal Account
- Ensure bank account/ACH information is on file for refund receipts
- Submit CAPE declarations in the ACE portal
- Only entry numbers are required to be submitted. The CSV file, called a CAPE Declaration, can include up to 9,999 entries, and filers may submit multiple declarations if needed. A downloadable CAPE Declaration template will be available through the “upload” button in the CAPE tab of the ACE portal.
- CBP has indicated that refunds will be processed in 60-90 days via ACH payments once submissions are validated, and no paper checks will be issued.
- Finally, while only entry numbers are required to be submitted, IORs are advised to gather additional information to internally track and reconcile receipt of tariff refunds (and interest) from CBP:
- Entry number
- Entry date
- Liquidation date
- Country of origin
- Tariff code and description of good
- Dutiable value
- IEEPA tariff rate applied and amount paid
- Internal tracking number (e.g., invoices), as applicable
- Ambassador Greer signals USMCA review unlikely to be resolved by July deadline: On 7 April, the U.S. Trade Representative (USTR) Jamieson Greer said that the Administration anticipates negotiations with Mexico and Canada, as part of the U.S.-Mexico-Canada (USMCA) tri-lateral review process, are likely to extend past the July 2026 deadline established under USMCA. While bilateral negotiations between the U.S. and Mexico are underway, the U.S. is not expected to start discussion with Canada until May. Ambassador Greer indicated there are provisions which may allow the U.S. to buy more time for negotiations, including notifying Mexico and Canada that the U.S. will take steps to exit the agreement. This would trigger a 10-year timeline in which Parties will meet periodically to address any barriers to extending USMCA, but the U.S. would continue to be part of USMCA and provide duty-free market access for most Mexican and Canadian origin products until 2036.
- 24 states argue Section 122 tariffs are illegal before the U.S. Court of International Trade (CIT): On 10 April, a three-judge panel at the U.S. CIT heard oral arguments as part of litigation by a coalition of 24 states' Attorneys General seeking to block the 10% Section 122 global tariff implemented in response to the invalidation of IEEPA tariffs. The states argue that the implementation of Section 122 tariffs is illegal because the tariff authority was designed to address balance-of-payments (BOP) deficits, which has not existed in the U.S. since the 1970s. While the Administration contends that the persistent U.S. trade deficit is indicative of a BOP issue. There is no timeline for when a ruling by the U.S. CIT will be issued, and a protracted appeals process is anticipated once a ruling is published. As such, a final resolution to this Section 122 litigation is not expected until after the 24 July deadline in which the current Section 122 tariff expires and will be replaced by other, yet to be determined, tariff actions by the Administration.
- Status of U.S. bilateral negotiations and discussions: During the period when IEEPA tariffs were in effect, the Trump Administration negotiated or announced trade agreements with nineteen countries. Countries with announced US reciprocal framework trade deals of relevance to PMMI members include the EU, Switzerland, Japan, UK, Taiwan, South Korea, and India. Given the Supreme Court decision that IEEPA tariffs are deemed illegal, the IEEPA-related provisions of agreements are nullified. As of 24 February, all US trading partners are subject to the Section 122 10% tariff regardless of whether a deal was negotiated. Latest updates on negotiations during the week of 7-13 April include:
- European Union: The first trilogue meeting between the European Parliament and EU Member States on implementation of the Turnberry Framework Agreement is scheduled for 13 April.
- China: On 7 April, USTR Greer characterized the U.S.-China economic relationship as "stable" and said the Administration is not looking for confrontation ahead of the rescheduled Trump-Xi summit in May. The two countries are working toward a proposed "Board of Trade" mechanism to govern bilateral goods trade within national security parameters.
- India: On 9 April, Secretary of State Rubio met India's Foreign Secretary Vikram Misri at the White House to discuss various policy issues including trade. Separately, Ambassador Gor confirmed that Secretary Rubio plans to visit India in May, which would be the Secretary’s first trip to the country since taking office.
