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The White House revealed its plan to impose substantial tariffs on a number of U.S. trading partners. In general, all U.S. imports will be subject to a minimum 10% tariff, which goes into effect April 5. Some countries, like China, will be hit with higher tariffs, while some like Canada and Mexico were exempted due to previous tariffs that have already been imposed. 

A Feb. 13 presidential memorandum directed USTR and other federal agencies to initiate, after April 1, “all necessary actions to investigate the harm to the United States from any non-reciprocal trade arrangements adopted by any trading partners.” Following those investigations the agencies are to submit to the president a report detailing proposed remedies in pursuit of reciprocal trade relations with each trading partner. Virginia companies need to monitor these developments closely and reach out to VEDP should questions arise. You can contact your Virginia trade manager here.

Just two days after new 25 percent tariffs were imposed on imports from Canada and Mexico, the White House announced that those tariffs will be suspended for all such imports that qualify for duty-free treatment under the U.S.-Mexico-Canada Agreement.

Late on March 6 , the White House issued separate executive orders exempting articles that are entered free of duty as a good of Canada or Mexico “under the terms of general note 11 to the HTSUS, including any treatment set forth in subchapter XXIII of chapter 98 and subchapter XXII of chapter 99” as related to the USMCA. Further, these EOs lower from 25 percent to 10 percent the additional tariff on imports of potash from Canada or Mexico that do not qualify under the USMCA. These tariffs may increase the cost of select products imported into the United States from Mexico and Canada, which happen to be the second and third largest exporters to Virginia, respectively. For more information, click here.

On March 12, the U.S. imposed tariffs of 25 percent on (1) additional steel derivative products classified in HTSUS Chapter 73, (2) aluminum and derivative products previously subject to 10 percent tariffs, and (3) additional aluminum derivative products classified in HTSUS Chapter 76.

These tariffs will only apply to the declared value of the steel or aluminum content of the derivative article. Tariff exemptions will apply to newly-added derivative products provided they were processed in another country from steel articles that were melted and poured, or aluminum articles that were smelted and cast, in the U.S. 

If aluminum derivative products are from Russia, or any amount of primary aluminum used to make those articles is smelted or cast in Russia, they are subject to 200 percent tariffs. Virginia companies that are importing steel or aluminum as inputs need to review carefully which products are subject to these new tariffs to ensure they remain in compliance. For more information, click here.

Canada has hiked tariffs on nearly C$30 billion worth of imports from the U.S. in retaliation for the Trump administration’s tariffs on steel and aluminum. 

According to a press release from Canada’s Department of Finance, as of March 13, Canada imposed 25 percent reciprocal tariffs on C$12.6 billion worth of steel products, C$3 billion worth of aluminum products, and C$14.2 billion worth of additional goods imported from the U.S. The list of affected products is available here and includes tools, computers and servers, display monitors, sports equipment, and cast-iron products. Affected goods that were in transit to Canada as of March 13 are exempt. It is possible that additional tariffs will be assessed on U.S. goods as a result of the April 2 tariffs.

These retaliatory tariffs on U.S. products may have severe impacts on Virgina companies doing business in Canada. In 2024, Virginia exported more than $3.4 billion to Canada, making Canada the largest export destination for Virginia companies. For more information, click here.

The European Union announced recently that it will delay retaliatory tariffs on imports from the U.S. in hopes of reaching a negotiated solution.

Effective March 12, the U.S. began imposing 25 percent tariffs on imports of steel and aluminum and derivative products from all countries. The EU responded with a two-step plan of retaliation, the first of which was to be reinstating tariffs on €4.5 billion worth of imports from the U.S. as of April 1. These tariffs, which had been suspended during President Trump’s first term, cover products ranging from boats to bourbon to motorbikes. In the second step the EU intends to impose in mid-April tariffs on another €18 billion worth of imports from the U.S. Proposed target products (a full list can be downloaded here) include industrial goods such as steel and aluminum products, textiles, leather goods, home appliances, house tools, plastics, and wood products as well as agricultural products such as poultry, beef, seafood, nuts, eggs, dairy, sugar, and vegetables.

However, EU officials said March 20, that Brussels now plans to impose both sets of retaliatory tariffs at the same time in mid-April (no specific date was given). The delay will allow time for the U.S. and the EU to hold negotiations on how to resolve the underlying dispute without a further escalation of tariffs (talks that appear to be ongoing). It will also give the EU time to evaluate the reciprocal tariffs President Trump imposed beginning April 2 and adjust its response measures accordingly.

Virginia companies export a lot to EU countries, and these tariffs are likely to increase the cost of doing business there. In fact, Germany, the Netherlands, and Belgium were top 10 export destinations for Virginia companies in 2024. For more information, click here.

Effective on March 4, additional tariffs on virtually all imported articles that are products of China were increased from 10 percent to 20 percent.

There are limited exemptions for goods for personal use, humanitarian donations, informational materials, and certain goods entered under HTSUS Chapter 98. In addition, goods from China may be exempted if they (1) were loaded onto a vessel at the port of loading, or in transit on the final mode of transport prior to entry into the U.S., before 12:01 am EST on Feb. 1, and (2) are entered or withdrawn from warehouse for consumption on or after 12:01 am EST on Feb. 4 and before 12:01 am EST on March 7.

While initially the U.S. allowed de minimis imports from China to continue, on April 2, the President revoked that ability effective May 2, 2025.  In the President’s original Executive Order, he announced his intention to shut down all de minimis entries from all countries when a system was in place to collect the tariffs. Given that a system is in place sufficient to address imports from China, we can expect that de minimis will be terminated for all countries soon. For more information, click here and here.

In response to the additional 10 percent tariff the U.S. imposed on imports from China as of March 4, Chinese government authorities have announced several retaliatory measures.

Effective March 10, China imposed additional tariffs of 15 percent on chicken, wheat, corn, and cotton and 10 percent on sorghum, soybeans, pork, beef, aquatic products, fruits, vegetables, and dairy products imported from the U.S. Press reports indicate that goods in transit will be exempt through April 12. Additional tariffs may be imposed if the U.S. increases its 20 percent tariff to a higher rate. In addition, China’s General Administration of Customs has suspended imports of logs from the U.S. and prohibited imports of soybeans from three U.S. exporters as of March 4.

On April 3, China imposed additional retaliatory measures on the United States including a 34% tariff on imports of ALL goods from the United States effective April 10, 2025. This duty will be in addition to any existing duties already in place.  If goods were on the water before April 10, and arrive in China before May 13, they will not pay these additional duties. Additional products were added to their dual use list; eleven were added to the unreliable entities list; 16 companies were added to their export control list; six companies were added to the import ban list; and a new antidumping duty investigation was initiated.

China is the second largest export destination for Virginia companies, coming after only Canada. These additional tariffs on U.S. products will likely increase the cost of doing business in China. For more information, click here.

During a Feb. 13 meeting in Washington, D.C., President Trump and Indian Prime Minister Narendra Modi launched the U.S.-India COMPACT (Catalyzing Opportunities for Military Partnership, Accelerated Commerce and Technology) for the 21st Century and committed to initial outcomes under this initiative this year. Anticipated trade-related measures include the following.

• Negotiating by fall 2025 the first tranche of a multi-sector bilateral trade agreement with the aim of increasing market access, reducing tariff and non-tariff barriers, and deepening supply chain integration
• Increasing U.S. exports of industrial goods to India and Indian exports of labor-intensive manufactured products to the U.S. as well as increasing two-way trade in agricultural goods
• Working to more than double total bilateral trade to $500 billion by 2030

The U.S. has not imposed any new tariffs on India at the time of writing, but negotiations are underway. For more information, click here.

According to press reports, the Trump administration has scrapped the Americas Partnership for Economic Prosperity, an initiative launched in June 2022 that was intended to build on the free trade agreements the U.S. has with countries in Latin America by focusing on issues like customs facilitation, good regulatory practices, resilient supply chains, stronger labor and environmental standards, and greater corporate accountability. 

Instead, reports state, the White House will work to update the America Crece (Growth in the Americas) program launched under the first Trump administration, which at that time focused on supporting economic development by catalyzing private sector investment in energy and other infrastructure projects across the region. Politico Pro noted that the revamped initiative will seek to revise existing FTAs and does not appear to envision the negotiation of new ones. For more information, click here. 

U.S. Customs and Border Protection has extended for two years, through Feb. 21, 2027, a test allowing the electronic submission of certain vessel entry and clearance data prior to vessel arrival or departure from designated ports.

CBP regulations generally require that the master or vessel agent of a commercial vessel submit certain arrival, entrance, and clearance data to CBP when traveling to and from U.S. ports of entry. Currently this data must generally be submitted on paper forms. CBP ultimately intends to amend its regulations to require the submission of certain vessel arrival, entry, and clearance data through VECS for all mandated vessels seeking entry into or clearance from U.S. ports after sufficient analysis and evaluation of the ongoing test. For more information, click here.

U.S. Customs and Border Protection has issued an interim final rule that adds implementing regulations covering various provisions of the U.S.-Mexico-Canada Agreement, including those affecting automotive goods, textile and apparel goods, drawback and duty deferral, recordkeeping and protests, temporary admission of goods, applicable fees, and other conforming amendments.

This rule will be effective as of March 18, which is also the due date for comments. However, compliance with the labor value content certification, steel purchasing certification, and aluminum purchasing certification provisions will only be required for vehicle certifications submitted to CBP on or after May 19. For more information, click here.

U.S. companies and their foreign affiliates can be hit with substantial criminal and civil penalties if they violate prohibitions against participating in foreign boycotts that the U.S. does not sanction. Boycott-related actions could see an increase amid ongoing conflicts in the Middle East.

The U.S. maintains two anti-boycott laws that are enforced by the Commerce Department through the Export Administration Regulations and the Treasury Department through the Internal Revenue Code. Under the anti-boycott provisions of the EAR, companies are prohibited from doing the following.

• Agreeing to refuse or actually refusing to do business with or in Israel or with blacklisted companies
• Agreeing to discriminate or actually discriminating against others based on race, religion, sex, national origin, or nationality
• Agreeing to furnish or actually furnishing information about business relationships with or in Israel or with blacklisted companies
• Agreeing to furnish or actually furnishing information about the race, religion, sex, or national origin of another person
• Implementing letters of credit containing prohibited boycott terms or conditions

Maximum civil penalties under the EAR for anti-boycott violations are more than $300,000 per violation or twice the value of the transaction, whichever is greater. For criminal violations, penalties of up to $1 million and/or 20 years’ imprisonment may be imposed. For more information, click here.

In the Feb. 19, 2025, Customs Bulletin and Decisions, U.S. Customs and Border Protection is reclassifying infrared video goggles as other electro-diagnostic apparatus under HTSUS 9018.19.95 (duty-free) rather than as other optical instruments and appliances under HTSUS 9018.90.20 (duty-free).

Ruling HQ H334777 will revoke Ruling NY N308716 to reflect this change, effective with respect to goods entered or withdrawn from warehouse for consumption on or after April 19. The product at issue consists of a plastic enclosure that goes around the eyes to block out all light, attached with a front panel and a silicone strap with two strap adapters and two adjusters. The front panel contains two cameras, two switches, a cable assembly, and other components. Each camera has two infrared LEDs and one visible light LED embedded on the chip and can detect both visible and infrared light, which it then captures on a sensor.

CBP concludes that the goggles are electro-diagnostic apparatus because they are designed to be used by trained medical professionals, such as audiologists, ENTs, physicians, etc., to assist in diagnosing vestibular disorders. Virigina companies exported more than $65 million under these HS codes in 2024. It is important for such companies to review these bulletins to ensure compliance moving forward. For more information, click here.

The State Department has issued an interim final rule that, effective Sept. 15, 2025, will amend the International Traffic in Arms Regulations to (1) remove from the U.S. Munitions List items that no longer warrant inclusion, (2) add to the USML items that do warrant inclusion, and (3) clarify certain entries. Among other things, this rule will remove restrictions on certain controlled reception pattern antennas for position, navigation, and timing to facilitate global navigation resiliency. Comments on these changes are due no later than March 18. For more information, click here.