AcrossTheTrax - February Edition 2025
A message from JF Moran's CEO, Betty Robson:
"As President Trump rolls out new policies, tariffs remain a key concern for businesses planning for the upcoming fiscal quarters. Recently avoided tariffs on major trading partners like Canada and Mexico have added to market uncertainty, with global organizations closely watching the March deferral deadline. Additionally, a 25% tariff on all steel and aluminum products is set to take effect in March, further impacting trade and supply chains.
These rapid regulatory changes can feel daunting, but we want to assure you that JF Moran is closely monitoring the latest developments and will keep you informed on what you need to know.
Our trade professionals are fully committed to helping businesses navigate these upcoming changes. We are actively preparing for anticipated tariff and regulatory adjustments and will continue to provide timely updates to our clients and partners as new information emerges."
The Latest News On Tariffs
China - Currently In Place
As of February 4, all U.S. imports from China are now subject to an additional 10% tariff, applied on top of existing tariffs. This increase, based on a February 1 executive order, applies to all inbound goods except those already in transit before 12:01 AM EST on February 1 and arriving in the U.S. by March 7, which are excluded from the additional tariffs. Furthermore, the Trump Administration has indicated that additional tariffs may be imposed on China starting March 4.
The Trump Administration is also beginning the process of ending duty-free import eligibility under the $800 de minimis exemption for all Chinese and Hong Kong-origin goods.
Mexico and Canada - (March 4 Implementation)
Mexico and Canada were initially subject to a 25% blanket tariff on all U.S. imports, but negotiations have delayed its implementation until Tuesday, March 4. However, both countries will still be subject to the 25% tariff on steel and aluminum, regardless of trade agreements. Additional details on trade regulation changes are expected early next week.
Steel and Aluminum - (March 12 Implementation)
Additionally, a 25% tariff will be imposed on steel and aluminum products from all countries, effective March 12, 2025. This includes specified derivative products. An expanded list of derivatives, which has yet to be determined, will also be subject to tariffs. These additional tariffs will take effect once the Secretary of Commerce approves the list and an adequate system is in place to efficiently process and collect them. Other Information: Exemptions were removed from previous trade agreements that were in place. Turkey hit with an additional 25% on steel. If a derivative steel product is made in another country but is produced using steel that was melted and poured in the U.S., it will not be subject to additional duties if proper certification is provided to CBP.
All previously approved exclusions will expire on March 12, 2025, unless the exclusion is still within its valid period OR the exclusion has remaining unused volume.
Could Using an FTZ Reduce Your Costs?
With the latest tariff announcements adding pressure to global trade, businesses are searching for ways to minimize costs and maintain supply chain efficiency. Foreign Trade Zones (FTZs) provide a strategic solution by allowing companies to defer or reduce certain duties and tariffs. These zones offer flexibility in manufacturing, warehousing, and distribution, helping businesses better manage cash flow and avoid unnecessary costs. By leveraging an FTZ, companies can stay agile amid evolving trade policies while ensuring smoother operations and stronger bottom lines. Do you think an FTZ could be the right fit for your business? Connect with your JF Moran representative today to explore how FTZs can support your tariff mitigation plan and cost-saving strategy.
Recent headlines have put the Panama Canal at the center of global attention, as President Trump’s stance on reclaiming the vital waterway sparks widespread debate. But why is this canal so crucial that it’s among the first issues addressed by the new U.S. administration? Let’s break it down:
1. Global Market Access
The Panama Canal connects the Atlantic and Pacific Oceans, enabling faster, cost-effective shipping between major markets in Asia, North America, and Europe. Without it, vessels would need to navigate around South America, adding weeks to transit times. The canal is a critical chokepoint for global commerce, influencing both trade flows and supply chain strategies.
2. Recent Disruptions and Controversies
The Panama Canal is facing mounting challenges due to both geopolitical tensions and environmental pressures. The U.S. has expressed concerns over China’s growing influence in the region, particularly through Chinese-operated ports at both ends of the canal. In response, Panama recently announced that it would not renew its Belt and Road Initiative membership with China, escalating diplomatic tensions. Simultaneously, a severe El Ni?o-driven drought has led to historically low water levels in Lake Gatún, forcing restrictions on vessel transits and increasing criticism of the canal’s management.
3. The Latest News
The Panama Canal has become a consistent talking point following President Trump’s comments that the U.S. should "retake" control of the vital waterway, citing concerns over Chinese influence and high tolls on American ships. Panama firmly rejected the idea, reaffirming its sovereignty over the canal. Meanwhile, U.S.-China tensions are escalating, with Panama opting out of China’s Belt and Road Initiative under U.S. pressure.
A Message From JF Moran’s Compliance Team:
If you are the importer of record, payment to the broker will not relieve you of liability for U.S. Customs and Border Protection charges (duties, taxes or other debts owed Customs and any additional Other Government Agencies) in the event the broker does not pay the charges. Therefore, if you pay by check, Customs and Border Protection and Other Government Agency charges may be paid with a separate check payable to “Customs & Border Protection” which shall be delivered to Customs and Border Protection by the broker. Importers who wish to utilize this procedure must contact our office in advance to arrange timely receipt of duty checks.
Periodic Monthly Statements (PMS dates for 2025):