U.S. Trade Policy and Tariff Actions
- President Trump modifies the scope of Section 338 trade action and issues import ban on select tariff lines from Canada: In response to the 8 September tariff retaliation by Canada, President Trump issued a pair of proclamations that modified the scope of the 50% Section 338 tariff actions for alcoholic beverages (see Annex) and motor vehicles (see Annex). Additionally, President Trump issued separate proclamations banning imports of select dairy products, alcoholic beverages, and motorcycles, from Canada effective 29 September. The modifications did not impact food processing and packaging machinery of 8422 and 8438, and the below Canadian origin machinery continues to be subject to the 50% under the original Section 338 tariffs. The import ban is not anticipated to impact PMMI members as it is limited in scope.
- 8422.3091: Machinery for filling, closing, sealing, capsuling, or labeling bottles, cans, boxes, or other containers; machinery for aerating beverages; nesoi
- 8422.4091: Packing or wrapping machinery, nesoi
- 8422.9091: Parts of packing or wrapping machinery, nesoi
- 8438.40: Brewery machinery, nesoi
- CBP expected to launch Phase 3 of CAPE on 6 October for IEEPA refunds: On 15 September, CBP’s Executive Director Trade Programs Directorate notified the U.S. Court of International Trade (USCIT) that Phase 3 of CAPE in ACE, which covers entries that reached “final” liquidation, is expected to be deployed on 6 October 2026. For now, Phase 3 will be limited to importers who have filed lawsuits over IEEPA payments and secured a refund order from USCIT. Eligible importers who have submitted a valid importer of record (IOR) number to CBP by 30 July 2026, will be able to file CAPE declarations on 6 October 2026. Those who submitted IOR numbers after 30 July 2026 will receive additional instructions. An appeal case is pending at the U.S. Court of Appeals for the Federal Circuit which addresses whether all “final” liquidated entries, regardless of a court order, will be able to file for refunds.
- President Trump signs Russia sanctions bill which includes new tariff authorities: On 18 September President Trump signed into the law the Russia sanctions bill which grants the President the authority to implement tariffs of up to 100% on goods imported from countries that knowingly made new purchases of Russian oil or gas on or 30 days after the bill’s enactment, and similar tariffs on imports from the world’s top five purchasers of Russian oil or natural gas. While the President is required to implement the tariffs within 30 days of the bill’s enactment, there are broad exceptions to their implementation. These exceptions include the ability for the President to waive tariffs if such an action is in the national interest. Reporting indicates that the implementation of tariffs under the new authority is not imminent, but it represents a new method for the Administration to deploy additional tariff action.
- Department of Justice (DOJ) defends full customs value Section 232 tariff calculation method in the USCIT litigation: On 16 September, the DOJ filed a brief with the USCIT defending the Administration's April 2026 restructuring of Section 232 tariffs on steel and aluminum derivative articles. The plaintiff argues that applying Section 232 tariffs to the full customs value of derivative articles, rather than only to the metal content value, exceeds the Administration's statutory authority. DOJ countered that the method is consistent with the 2 April Presidential Proclamation.
