U.S. Trade Policy and Tariff Actions
- CAPE tool launched; PMMI members can now apply for IEEPA tariff refunds: On 20 April, CBP initiated Phase 1 of the Consolidated Administration and Processing of Entries (CAPE) tool in the Automated Commercial Environment Secure Data Portal (ACE). Under Phase 1, importers and authorized customs brokers 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 (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. No timeline has been announced for subsequent phases.
To file for a refund, IORs and their customs brokers will need to:
- Ensure that their entity or authorized customs broker has an established ACE account.
- Ensure bank account/ACH information is on file for refund receipts. Enrollment information can be found here.
- Submit CAPE declarations in the ACE portal using the recommended CSV template available in the CAPE tab of the ACE Portal. Currently only the entry number is needed to populate the template.
CBP is hosting two informational webinars on how to navigate CAPE on 21 April and 28 April, both at 1:00 PM ET (see CSMS # 68396594 for more details). In addition, CBP has published the following resources to assist IORs and brokers:
For more details, please see the PMMI Frequently Asked Questions on IEEPA tariff refunds.
- Treasury Secretary Bessent signals higher Section 301 tariffs could replace Section 122 tariffs as early as July: In a statement to the Wall Street Journal, Treasury Secretary Scott Bessent indicated that tariff rates could return to levels previously in place under IEEPA as early as July through the use of Section 301 tariff action. The current 10% Section 122 global tariff expires on 24 July 2026, and the Administration has noted on numerous occasions their intentions of replicating IEEPA tariffs to their full extent through other legal authorities. This includes tariff actions resulting from the ongoing Section 301 investigations on structural excess capacity and forced labor, among others.
- USMCA joint review update: USMCA bilateral talks with Mexico continued on 20 April. Agenda topics included aluminum, steel, and coordinated trade policy to reduce North America's reliance on non-regional goods. Last week, ahead of the talks:
- Ambassador Greer stated in front of a congressional budget hearing that continued offshoring by U.S. businesses to Mexico is a key concern.
- Canada's Trade Minister Dominic LeBlanc stated that Canada intends to resolve trade frictions with the U.S. as part of a comprehensive agreement rather than through "one-off" deals, and that the issues raised privately by U.S. officials are consistent with those outlined publicly.
- Canadian Prime Minister Mark Carney released a public address stating that Canada's historically close trade ties with the U.S. have become a "weakness that must be corrected," and that Canada must reduce reliance on the U.S. as its primary trade partner.
- 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. However, countries are still negotiating bilateral trade deals with the US, with latest updates on negotiations during the week of 14-20 April include:
- United Kingdom: On 13 April, the UK Parliament's cross-party Business and Trade Committee launched a formal inquiry into the UK's Economic Prosperity Deal with the U.S., citing "uncertainty" that is "frustrating ambitions for deeper trade.” The inquiry is expected to report before the summer recess. The committee also launched a parallel inquiry into the UK-EU reset.
- India: On 20 April, a delegation of approximately twelve Indian officials arrived in Washington for three days of talks with U.S. counterparts on the first phase of the bilateral trade agreement (BTA). The talks mark the first formal engagement since February's planned talks were deferred following the Supreme Court's invalidation of IEEPA tariffs. Both sides are expected to recalibrate the agreed framework considering the changed U.S. tariff landscape.
Trade Policy Actions by Other Countries
- India and South Korea agree to nearly double bilateral trade to $50 billion by 2030: On 20 April, South Korean President Lee Jae Myung visited Indian Prime Minister Modi in New Delhi, where the two leaders announced a target to increase bilateral trade from approximately $27 billion to $50 billion by 2030. Both sides signed multiple Memoranda of Understanding (MoU) covering steel, sustainability, and accelerated negotiations to upgrade the India-South Korea Comprehensive Economic Partnership Agreement (CEPA). There is no public information on timeline or details on how the CEPA may be upgraded, including if there will be additional market access opportunities for Indian origin machinery imported into South Korea. Under the current version of the CEPA, food processing of 8438 and packaging machinery of 8422 from South Korea enters India preferentially duty-free. While machinery imports into South Korea from India have no preferential market access and are subject to an 8% MFN/standard duty.
