Much to update you on with the current U.S. tariff policy. Buckle up…
IEEPA Tariff Refunds: To date, the Trump Administration has returned $100 billion in tariffs that were illegally levied under the “Liberation Day” IEEPA (International Emergency Economic Powers Act) justification. This figure represents about 60% of the estimated $166 billion that was charged. The remaining monies are tied up as being contested, under review, or not yet applied for.
We’re happy to report that for those customers who use GPI for their freight forwarding, all of the applicable entries that we cleared through U.S. Customs in 2025 were accepted, approved, and refunded with interest. A great track record!
Current Tariff Policy: When the IEEPA tariffs were struck down by the U.S. Supreme Court on February 24th, the Trump Administration pivoted the next day to implement a global 10% tariff rate on all imports under a new justification: Section 122 of the Trade Act of 1974. This act authorized the President to implement this policy only for 150 days. This authorization expired on July 24th. It should be noted that this tariff policy is also being challenged in court, so it’s anybody’s guess what a decision on the legality of these tariffs might look like.
Now, the administration has implemented yet another tariff policy (I know, it’s head spinning but this is our reality…). This new policy is justified under Section 301 of the Trade Act of 1974. This should sound familiar, as there are Section 301 tariffs currently in effect that were implemented in 2018 during Trump’s first administration. Those tariffs applied to steel and aluminum imports (and some products containing steel and aluminum), semiconductors, and a range of chemicals and other raw materials.
The new (Section 301) tariff policy, effective as of July 24th, levies tariffs of 10% and 12.5% on a list of 80 countries who, according to the Office of the U.S. Trade Representative, have “failed to curb the use of forced labor in manufacturing”. All products produced in and imported from China are subject to the 12.5% rate.
It is important to note that these Section 301 tariffs are “stacked” on top of the existing Section 301 tariffs, so the ultimate rate that is charged when goods are cleared through U.S. Customs could actually be higher.
We’re Sorry Canada…: We do like you, we don’t think you’re “nasty people”, and we don’t really want to make you our 51st state. Most of all, we’re sorry that those in the Federal Government seem to think otherwise. Oh, and we’re sorry about the heavy-handed tariff policy currently in effect. The tariff landscape looks like this:
- Section 301 Baseline Duty: The new 10% tariff applies to most Canadian imports
- “Sectoral” Duties: Ongoing Section 232 tariffs range from 10% to 50% on metals (steel, aluminum, copper), plus 25% duties on non-USMCA (United States-Mexico-Canada Act) compliant vehicles and components, softwood lumber, and select furniture.
- President Trump has further announced sweeping 50% tariffs on roughly $20 billion worth of additional Canadian goods to take effect on August 19, 2026. He has also threatened to levy even more tariffs due to the smoke that was blanketing the U.S. recently for the rash of wildfires Canada experienced.
Again, we’re sorry, and hopefully someday we’ll make it up to you…
So stay tuned, everyone, as there seems to be one constant that is a foundational element to the United States Global Tariff Policy: it’s subject to constant change!
