U.S. China Trade Truce Extended, Products Recommended for Reduced Tariff Treatment
Following last week’s summit between the U.S. and China, the two countries have agreed to extend a trade truce that began in May 2025. The agreement, set to expire in November of this year, will now be extended through January 10, 2027. At this time, it is unclear exactly which aspects of the truce will be extended but the announcement brings hope that a trade deal can be reached in the coming months.
The U.S. China Board of Trade has also been hard at work and has released a list of more than 75 products recommended for reduced tariff treatment. The list includes goods like fireworks, Christmas ornaments, toys, flashlights, highchairs, microwaves for domestic purposes, and more. Details of implementation, the timeline for implementation, and what form the potential tariff breaks might take are not yet known. We will be looking for further developments.
Import Ban on Select Goods from Canada Takes Effect
The import exclusions from Canada first announced by President Trump on September 8 have now gone into effect. The bans cover select Canadian products including alcohols, dairy products, and motorcycles. Goods covered by these proclamations can no longer be imported into the United States. Already imported products, like those stored in a bonded warehouse or an FTZ, may still be imported with the additional 50% Section 338 duties attached. Any entries containing banned Canadian products that have not been released before September 29 will be canceled.
To view the proclamations and a list of the goods excluded, please visit the White House websites at the following links: Motor Vehicles, Dairy, Alcohol.
Withhold Release Order Issued for Palm Oil and Derivatives from Indonesia
CBP has issued a withhold release order for palm oil and its derivatives produced by two Indonesian plantations: Mitra Aneka Rezeki (MAR) and Hardaya Inti Plantation (HIP). The WRO was issued due to evidence indicating the use of forced labor in production. Because of this, effective immediately, CBP will detain any shipments of palm oil or its derivatives that were produced by MAR or HIP. Importers of any detained shipments may seek to either destroy or export their shipments or they may seek to demonstrate that the merchandise was not produced with forced labor.
If you believe that a product has been produced with forced labor and is being imported or is likely to be imported into the U.S., you can make a report via CBP’s Forced Labor Allegation Portal.
Section 232 Pharmaceutical Updates Take Effect
The full weight of the Section 232 Pharmaceutical tariffs, as well as the modifications announced via Federal Register on September 23, have now taken effect. Previously, Section 232 Pharmaceutical tariffs went into effect on July 31 for the companies listed in Annex III, while all other companies could import targeted pharmaceutical products for 0% additional duty under 9903.04.61. As of 12:01 AM ET on September 29, 9903.04.61 has expired and all companies will be expected to comply with the additional duties unless another exclusion applies.
The modifications announced on September 23 included the following: the removal of five HTS headings from Annex IV, amended definitions of generic pharmaceutical articles and pharmaceutical articles, amended text for subdivision (i), amendments to Annex I to incorporate the statistical changes that went into effect on July 1, and the addition of a new HTS heading 9903.94.70 for pharmaceutical articles and associated ingredients that are solely for use in clinical trials, research and development, or other non-commercial applications.
The federal register notice also announced a process for importers to qualify for the 0% additional duty under 9903.04.66 which covers drugs and pharmaceutical articles for specific uses such as those designated as orphan, nuclear medicines, plasma derived therapies, etc. It also clarified the jurisdictions eligible to use the 9903.04.66 exemption.
A CSMS message was sent by CBP on September 28 with updated guidance.