The Trump administration has upended global trade in a short period, with the announcement of multiple rounds of tariffs at the commodity, sector, and country levels. Temporary pauses and revocations for certain commodities and countries compounded the uncertainty.
With other larger economies and economic blocs retaliating by imposing counter-tariffs and other restrictions, the ability for multinational corporations, importers and customs brokers to understand implications and strategically scenario plan has become a daily challenge. While some headway has been made in the past few weeks, as tariff rates are lowered and discussions initiated with countries to find common ground, the burden of interpreting and applying the various tariffs correctly is widely expected to remain elevated over the next four years.
Importers, customs brokers, and trade compliance professionals will have to act quickly on heir procurement and compliance planning to ensure they are aware of the latest tariff levels and policy changes, analyse their sourcing data to calculate the exact rate of tariff applicable, and devise strategies to avoid tariff overpayments, while ensuring adherence to all customs regulations and without hindering the smooth movement of goods.
We have shared below some commonly asked questions that our client base of importers and customs brokers must find answers to or understand completely, if they intend to remain ahead of the game in a constantly evolving international trade environment. We often remind our clients they ‘had better know their data better than CBP does.”
Q1. Where can I get authentic information on the latest applicable tariffs and rules?
While it is difficult to track the frequent changes, trade compliance professionals can use the sources below, which provide up-to-date ‘official’ information:
· Federal Register: https://www.federalregister.gov/
· CSMS Alert Registration and Archive: https://www.cbp.gov/trade/automated/cargo-systems-messaging-service
· Executive Orders: https://www.whitehouse.gov/
Q2. What does the current 90-day pause on reciprocal tariffs mean?
With the announcement of base tariffs of 10% and higher reciprocal tariff rates ranging from 11% to 50% on the table in the coming weeks, depending on the country of origin, importers and customs brokers have their task cut out in figuring the impact of tariff stacking.
The initial 90-day pause was announced on April 9 for the reciprocal tariffs on all countries, except China, with a flat 10% tariff on all exports to the US. After several tit-for-tat hikes in retaliatory tariffs between China and the US, which saw US tariff rates on China reach a stunning 145%, the countries jointly announced a 90-day pause on these high tariffs on May 12, bringing the baseline US tariff rates on China all the way down to 30%.
The 90-day pause is intended to offer a brief window for bilateral discussions, whereunder tariffs will be reevaluated depending on concessions made for American exports. Importers can effectively utilize this period to strengthen their supply chains by seeking alternative sourcing centers and analyzing policy changes to minimize the impact on their businesses.
Q2 a). What does the current pause on some tariff categories from the Court of International Trade in the U.S. mean?
The CIT ruled on May 28th that the IEEPA tariffs (Fentanyl and Reciprocal) were illegal (find a reference). The Trump administration likewise filed an immediate appeal which will take time to work through the courts. As per question 1 above, it is suggested to ensure that any announced policy changes or challenges go through the main information flows before action can be taken.
Q3. How are dates calculated for country-of-origin tariffs for China?
Tariff applicability is determined by the “Release Date” provided by CBP, which is assigned after the customs entry is accepted and generally coincides with the arrival at the final port of entry.
Both the Fentanyl and Reciprocal tariff programs included in-transit exceptions, allowing for a phased-in approach to tariff assessment. This meant that if cargo was loaded onto the mother vessel for ocean freight before the effective date of the tariff, and the shipment would unload at a U.S. port, it could qualify for an exception — but only if the program explicitly allowed it. These exceptions have since been clarified by CBP with specific guidance on the mode of transport and what constitutes eligible loading.
It’s essential for importers and customs brokers to carefully track shipping documents — particularly the actual date of arrival and the CBP Release Date — to ensure that the correct tariff rate is applied. Monitoring these timelines helps avoid unexpected tariff charges and ensures compliance with customs regulations, particularly during transitional periods such as tariff increases or temporary pauses.
Q4. What is tariff stacking? How does tariff stacking work?
Tariff stacking refers to the compounded effect of multiple tariffs that apply to the import of a single commodity. Since tariffs have been announced at the commodity, sectoral, and national levels, most consignments will be subject to more than one tariff.
For example, aluminum derivative imports are subject to the base reciprocal tariff of 10%, imposed on the country of origin, as well as the Section 232 tariff of 25%. Thus, the final rate of punitive tariff for aluminum imports is the sum of these applicable tariffs plus any most favored nation and possible antidumping and countervailing duties, as they are stacked on top of one another.
The implication for importers and trade compliance professionals is added complexity, as they will be required to evaluate their global customs footprint, identify all applicable tariffs, and calculate costs accordingly, to ensure compliance and avoid tariff overpayment.
Q5. How is CBP keeping up with these changes? Will the importer be penalised even if there is an inadvertent omission or delay on the part of CBP?
While CBP relies on AI tools and analytics for enforcement, the sheer pace of changes announced and the extremely short timeframe for implementation render it difficult for CBP to incorporate the revisions into its software. Therefore, what we have seen happening is that the CBP sets up the HTS codes and tariff rates, but they don’t always have the validations in place to reject errors at the time of entry filing.
Therefore, while an import or customs broker can transit customs entries based on their best understanding of the applicable duty rates, and CBP might also accept the duty calculations, there remains risk that CBP subsequently identifies some discrepancy or deficiency in the customs filing and rate advance the entry sending an invoice to the importer for additional payment. The importer is then liable for paying the duty difference, along with interest.
Q6. If goods were shipped when the reciprocal tariffs were higher, and the tariff was then reduced at a later date, can the importer apply the reduced rate?
Each shipment will be subject to the tariffs that are in effect on the Release Date assigned by CBP when the goods arrive in the United States. Even if the tariff rate is revised at a later date, either upwards or downwards, the new tariff rate cannot be applied unless CBP announces retroactive refunds through a certain Release Date. We have not seen this in practice during the current administration and thus importers and customs brokers have considered whether to delay entry filings while pending imminent announcements and the impact of the tariff fluctuations versus potentially paying storage while they await the details.
Importers can use certain strategies to try and minimise the impact of tariff rates increasing, such as:
a) Take goods to a Foreign Trade Zone, in which case the tariff rate is locked into Privileged Foreign status based on the date of admission into the zone. Even if higher tariffs are announced subsequently, they will not apply to goods in Privileged Foreign Status. Likewise, if goods are re-exported from the Foreign Trade Zone they never become subject to tariffs at all. However, this strategy also risks tariffs being locked into a higher rate in effect at the time of admission if tariff rates could go down later.
b) Store goods in a bonded warehouse so that the tariff rate is based on the day the shipment is removed from the bonded warehouse. Bonded warehouses do not lock in the tariffs at the time of admission like Foreign Trade Zones. However, bonded warehouses have limited activities that can be performed and time limits for removal unlike Foreign Trade Zones making each program more or less appealing on a case-by-case basis
c) You can also distribute through Canada or Mexico so that the tariffs are assessed based on when the cargo crosses into the US and is released into US commerce. If you unload at a US port and move in bond to export into Canada or Mexico, you would not be subject to tariffs until the goods return to the US. However, you may also need to defend the activity in Canada or Mexico being more than circumvention of the tariffs to avoid CBP scrutiny and potential penalties.
Q7. I’ve been flagged for section 232, but I don’t have any metal derivatives in my product. What should I do?
Section 232 has multiple subsections of HTS codes that can have the 25% tariffs based on the full entered value or only the respective metal value.
If your HTS code flags for Section 232 based on the full entered value, you are not able to disclaim the Section 232 tariffs. In this case, you may want to review your HTS code to confirm it is appropriate if your import does not contain that metal. These HTS codes are typically found in the HTS chapters specific to the respective metal.
Otherwise, if your HTS code flags for Section 232 based on the metal value, and your import does not contain that metal, then the customs broker would file the entry without declaring an HTS code for Section 232, and there would be no tariffs assessed.
CBP has clarified that in order to be “subject to” Section 232 for the HTS codes that flag for Section 232 based on the metal value, the import must contain greater than zero metal.
There is also a Reciprocal tariff exception for imports subject to Section 232. If there is no metal content for an HTS code flagged as a derivative (with the tariff based on metal value) then the Reciprocal tariff exception would not apply. If CBP finds that a customs entry used the Reciprocal tariff exception without also paying greater than $0 Section 232 duties, then CBP can “rate advance” the entry and invoice the importer for the Reciprocal tariffs.
Q8. What do I need to do to ensure bond sufficiency?
The annual customs bond amount needs to be at least 10% of the total duties and fees assessed by CBP during the bond’s effective period.
While importers may set the next year’s bond amount based on past years’ records and expectations for the forthcoming year, in times when exponentially higher tariffs have become the norm, such an approach may add risk that the bond may not be sufficient to cover the additional costs.
To overcome these challenges and avoid a situation where CBP issues a bond insufficiency notice and the flow of imports is impeded due to inadequacy of the bond amount, importers need to adopt a proactive approach in terms of:
a) Leveraging dialogue and using algorithms such as increased uplift factors to determine the bond amount
b) Monitor imports against the bond
c) Seek clarity from your surety as to what bond thresholds start to trigger additional underwriting requirements that could include sharing copies of your financial statements and putting up collateral to approve the bond.
Given the dynamic nature of the tariff scenario, importers and customs brokers will be under pressure to ensure compliance and accurate tariff payments. The frequent changes also make it difficult to plan customs activities. The volume of post-entry corrections may also increase due to changes in interpretation or other guidance from CBP.
While importers have no control over the pace or direction of policy changes, staying informed and proactive — using the guidance above — can help mitigate volatility and reduce the commercial and operational risks to their business.
Partnering with KlearNow and using the company’s AI-powered global trade data hub can make it easier for importers and customs brokers to navigate the turbulent trade environment by capturing all your trade data without complex integrations, digitizing documentation, and allowing you to run tariff scenarios using your own data in near real-time.
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