U.S. Trade and Tariff Update: Key Developments on IEPPA Tariffs

On May 28, the Court of International Trade (CIT) ruled that the IEPPA tariffs under the Trump Administration are unlawful, giving CBP 10 days to respond to this ruling by CIT. This ruling applies to the IEPPA tariffs (Fentanyl tariffs with China, Mexico and Canada, and the Reciprocal/Liberation Day tariffs) but does not apply to Section 232 (Steel, Aluminum, Auto, and Auto parts) or to Section 301 tariffs for China (which started in 2018). 

Today, on May 29, the U.S. Court of Appeals for the Federal Circuit issued a stay on the Court of International Trade's ruling while the appellate court reviews the government's emergency stay motion filed by the Trump administration. 

It is not clear whether refunds will ultimately be allowed, nor what the process will be for refunds if allowed (whether through a PSC process or automatic refunds). In the short term, the tariffs will continue to be collected at least until the appellate court reviews the government’s emergency stay motion.

Regardless of the appeal's outcome, the Trump administration has alternative mechanisms to impose tariffs in place of the currently under appeal IEPPA tariffs.

We will continue to monitor this issue very closely and continue to provide updates as they become available.  

For assistance and additional questions, please reach out to Janel Group's Compliance Team or a Janel Group Representative.

Sean McClung

Director of Trade Compliance for Janel Group LLC

Jodi Blitz

Senior Compliance Analyst

Market Update: May 20, 2025

Ocean Freight Market

The White House has announced a reduction in the reciprocal tariff on Chinese imports to 10% as part of a 90-day pause starting May 14, 2025. This adjustment reduces the rate from 34%, as set by Executive Order 14257 on April 2, 2025, by 24 percentage points. Media reports of a 30% total rate reflect the combination of a 20% IEEPA tariff and the 10% reciprocal tariff. Note that if the shipment is subject to Section 232 tariffs, the 10% reciprocal tariff does not apply—instead, the 25% Section 232 tariff will apply.

The updated China duty rate structure will be: MFN Rate + Section 301 (7.5%–25%) + IEEPA (20%) + Reciprocal (10%).

For those under Section 232, it will be: MFN Rate + Section 301 (7.5%–25%) + IEEPA (20%) + Section 232 (25%).

We’re awaiting the Federal Register Notice (FRN) for the exact end date of the 90-day pause and specific details on the May 14 implementation, including in-transit rules.

The full White House joint statement is available in the provided link – here.

In the Trans-Pacific market, 34% of capacity was cancelled in late April/early May, with demand seeing a very short-lived drop pre-trade negotiation. Currently, 52 container ships are crossing the Pacific (up from May 2024/2023), against a January-April average of 55–59. LA/LB ports have 15 ships on berth (below the usual 20), hinting at congestion risks. Freight rates are likely to spike as importers address backlogs, with ocean rate hikes expected. Logistics challenges, like container shortages in China and limited US trucking capacity, may arise due to the surge in backlog shipping. We are advising clients to secure bookings early to avoid delays, as larger importers may get priority. 

The US-UK also reached a trade deal on May 8, reducing tariffs on British cars (from 27.5% to 10% for up to 100,000 vehicles), steel, and aluminum, while maintaining a 10% base tariff on most UK goods. The UK removed tariffs on US ethanol and granted tariff-free beef access (13,000 metric tonnes). The deal opens approximately $5 billion in US export opportunities, including agriculture and aerospace, and establishes a framework for future digital trade and technology partnerships. Final details are still being negotiated. This provides some clarity on expectations for non-China trade deals to come over the next few months.

Conditions in the Red Sea persist. However, as the USA and Yemen’s Houthis come to an agreement for a ceasefire, it is unclear if safe shipping will return to the region. Though Yemen’s Houthis agree to stop stacking vessels in the Red Sea and Bab al-Mandab Strait, leaders of the group indicate their campaign against Israel will continue. Without a complete ceasefire, escalation remains possible. Carriers will not resume shipping through the region until war risk insurance rates are revised, which is unlikely while escalation remains a threat.

Airfreight Market

Successful negotiations between the USA and China to reduce tariffs are expected the elevate booking demand in the coming weeks. As capacity returns to normal post-holiday in China and booking demand spikes in light of reduced tariffs, we expect spot rates to trend upward in the coming weeks. Space continues to be dominated by e-commerce and small-pack freight. We strongly urge clients to confirm space in advance for large shipments or volumetric freight. It is anticipated that capacity and volumes will shift over the coming weeks, resulting in temporary instability as airlines work to redeploy aircraft to higher demand lanes.

The U.S. Market

Market Overview:

Successful negotiations to reduce tariffs from multiple origins signal potential surges of inbound freight. Ports and truckers brace for increased volumes. Downturns in operations with dour projections resulted in a contraction of trucking capacity, as well as slow downs at ports. Considering revised projections now showing a swell, cargo handlers are scrambling to be prepared. Delays in processing freight is expected at all ocean and air terminals as an influx of freight lands in the US. Domestic trucking capacity is anticipated to be put under stress in coming weeks and months.

USWC: Good conditions reported, volumes down.

USEC: Good conditions reported, volumes down

USMW: Good conditions reported, rail lines confirming high capacity available.

USSW: Good conditions reported, volumes down

Janel Group continues to closely monitor the market and port situation. Updates will be provided as they come available. To secure a booking or explore additional options for your supplier, please reach out to your Janel Group Representative.

Gabriel Racicot

Director of Procurement and Strategic Partnerships

Hanna Taylor

Sr. Pricing & Commercial Support Analyst

Market Update: May 15, 2024

Ocean Freight Market

Transpac availability remains limited with bookings approx.3 weeks in advance and conditions are expected to continue throughout June. Carriers leveraged the capacity crunch to implement a Peak Season Surcharge and will likely implement GRI and PSS on June 1. Amid the recent uptick in demand, MSC has announced “Diamond Tier premium” for guaranteed space and other carriers are likely to follow suit.

Unions in ports Montreal and Vancouver have indicated possible strike action to begin May 22. The workers voted to strike if a labor deal is not made with strong indicators for possible negotiations. The unions have been without a contract since December 21, 2023. BC Maritime Employers Association (BCMEA) and International Longshore and Warehouse Union Ship & Dock Foremen (ILWU) continue to negotiate to resolve the issue before the strike date. Canada’s Minster of Labour asked the Canada Industrial Relations Board (CIRB). A determination could prevent a strike or lock-out due to health & safety concerns.

Trans-Pac General Rate Increases (GRI)

• May 15 PSS announced and implemented in full.

• June 1 GRI announced and likely.

• June 15 PSS announced.

Airfreight Market

As summer travel ramps up, airlines warn to plan for passenger effects to take priority over booked cargo. Rates remained steady, however coming months could see increases as passenger travel ramps up. Spot markets remained steady.

Civil Aviation Department of Hong Kong announced cargo fuel surcharge will increase effective June 1 2024.

Holiday Notices

• Hong Kong: (Labor Day) Offices closed May 1. Normal hours to resume May 2. (Buddha’s Birthday) Offices closed May 15. Normal hours to resume May 16.

• China: (Labor Day) Offices closed May 1 through 5. Normal hours to resume May 6.

• Taiwan: (Labor Day) Offices closed May 1. Normal hours to resume May 2.

• Malaysia: (Labor Day) Offices closed May 1. Normal hours to resume May 2. (Waisak Day) Offices closed May 22. Normal hours to resume May 23.

• India: (Labor Day) Offices closed May 1. Normal hours to resume May 2.

• Indonesia: (Labor Day) Offices closed May 1. Normal hours to resume May 2. (Ascension Day) Offices closed May 9 & 10. Normal hours to resume May 11. (Waisak Day) Offices closed May 23 & 24. Normal hours to resume May 25.

• Korea: (Labor Day) Offices closed May 1. Normal hours to resume May 2. (Children’s Day) Offices closed May 6. Normal hours to resume May 7. (Buddha’s Birthday) Offices closed May 15. Normal hours to resume May 16.

• Philippines: (Labor Day) Offices closed May 1. Normal hours to resume May 2.

• Thailand: (Labor Day) Offices closed May 1. Normal hours to resume May 2. (Coronation Day) Offices closed May 6. Normal hours to resume May 7. (Visakha Day) Offices closed May 22. Normal hours to resume May 23.

• Vietnam: (Labor Day) Offices closed May 1. Normal hours to resume May 2.

• United States: (Memorial Day) Offices closed May 27. Normal hours to resume May 28.

The U.S. Market

Overview

International Longshoreman Association (ILA) President issues statement of confidence on the upcoming contract negotiations. Tentative local contract negotiations were completed on schedule, allowing for Master Contract talks to proceed.

Maryland transportation officials announced the Francis Scott Key Bridge is anticipated to be rebuilt by Fall 2028. Local Port Authority of Baltimore announced cargo stranded in the terminals of Baltimore will begin processing around the end of May.

US Lawmakers urged the Biden administration to a “swift conclusion” to the ongoing review of the Section 301 tariffs. The review aims to study the impacts of the Section 301 tariffs and effectiveness implemented by prior administration. In 2022, the US Trade Representative opted to extend the tariffs while investigation of impact of the additional tax, including effects on US consumers, manufacturers, workers, technology, and supply chains. The Section 301 tariffs are slated to expire at the end of May.

• USWC: Congestion and higher volumes reported. Estimated 7 days needed for vessel to rail transfer. Reduced operations at Portland’s terminal 6 underway and the port has announced plans to shutter its only container terminal this October, which certainly effect PSW trade lanes.

• USEC: Congestion reported in ports with Baltimore diverted traffic. Congestion expected to continue indefinitely.

• USMW: Good conditions reported, volume increases reported.

• USSW: Good conditions and low congestion and lower volumes reported.

Janel Group continues to closely monitor the market and port situation. Updates will be provided as they come available. To secure a booking or explore additional options for your supplier, please reach out to your Janel Group Representative.

APHIS Announces Process Change for Precleared Shipments from Selected Countries

CSMS # 60496390 - APHIS Announces a Process Change to Invoke Certificate of Foreign Inspection and/or Treatment (PPQ Form 203) for Precleared Shipments from Selected Countries.

Starting May 10th, 2024, the US the U.S. Department of Agriculture’s (USDA) Animal and Plant Health Inspection Service (APHIS) will roll out use of APHIS Core Message Set for Certificates of Foreign Inspection and/or Treatment (PPQ Form 203, LPCO type code A07) for air shipments of precleared commodities from Chile, air shipments of precleared commodities from Thailand, and both air and maritime shipments of precleared commodities from Argentina.

This process improvement facilitates commodity inspections and expedites trade. Additionally, it creates an electronic database—for Certificates of Foreign Inspection and/or Treatment—that can be invoked by filers and accessed by Customs and Border Protection (CBP) Agriculture Inspectors through the Automated Commercial Environment (ACE) Document Image System (DIS).

APHIS will continue to send stakeholder announcements as the PPQ203 is phased in for different international preclearance locations and commodities.

Importers must provide a PPQ Form 203 to their Customs Broker when Importing:

• Air shipments of precleared commodities from Chile.

• Air shipments of precleared commodities from Thailand

• Air and Ocean shipments of precleared commodities from Argentina

PPQ Form 203

For assistance and additional questions, please reach out to Janel Group's Compliance Team:

Sean McClung

Director of Trade Compliance

Jodi Blitz

Senior Compliance Analyst

Market Update: May 1, 2024

Ocean Freight Market

Carrier blank sailings to the US West Coast hit over 20% of total trade capacity. Meanwhile, demand surged in final weeks of April in preparation of a weeklong holiday and closures in China. As reduced capacity failed to meet increased booking needs, FAK rates remained steady through April and had full implementation of a May 1 GRI. Our partners project a June 1 increase via PSS/GRI is likely as the delta between FAK & contract rates is now quite significant. Ningbo and Shanghai ports reported shortages of container equipment. As carriers reintroduce services, and rebalance equipment, spot market conditions are expected to improve in the coming weeks. Recovery of retail markets in the USA cast a hopeful light on the remainder of the year.

Panama Canal Authority report rising water levels in the Gatun Lake, a crucial source of water for the canal. Operations of the canal have already begun to allow more vessels. As water levels continue to recover in the lake, it is projected Panama Canal routings to become more stable and allow for regular transit times. Suspended loops utilizing the canal are expected to return to full service.

Trans-Pac General Rate Increases (GRI)

• May 1 GRI announced and implemented in full.

• May 15 PSS announced but unclear.

• June 1 GRI announced.

• June 1 PSS announced.

Airfreight Market

Air rates remained steady through the end of April and into May. Steady e-commerce and retail demand stabilized the market despite geo-political factors. It is expected air rates will increase post-holiday as delayed shipments dominate bookings.

Holiday Notices

• Hong Kong: (Labor Day) Offices closed May 1. Normal hours to resume May 2. (Buddha’s Birthday) Offices closed May 15. Normal hours to resume May 16.

• China: (Labor Day) Offices closed May 1 through 5. Normal hours to resume May 6.

• Taiwan: (Labor Day) Offices closed May 1. Normal hours to resume May 2.

• Malaysia: (Labor Day) Offices closed May 1. Normal hours to resume May 2. (Waisak Day) Offices closed May 22. Normal hours to resume May 23.

• India: (Labor Day) Offices closed May 1. Normal hours to resume May 2.

• Indonesia: (Labor Day) Offices closed May 1. Normal hours to resume May 2. (Ascension Day) Offices closed May 9 & 10. Normal hours to resume May 11. (Waisak Day) Offices closed May 23 & 24. Normal hours to resume May 25.

• Korea: (Labor Day) Offices closed May 1. Normal hours to resume May 2. (Children’s Day) Offices closed May 6. Normal hours to resume May 7. (Buddha’s Birthday) Offices closed May 15. Normal hours to resume May 16.

• Philippines: (Labor Day) Offices closed May 1. Normal hours to resume May 2.

• Thailand: (Labor Day) Offices closed May 1. Normal hours to resume May 2. (Coronation Day) Offices closed May 6. Normal hours to resume May 7. (Visakha Day) Offices closed May 22. Normal hours to resume May 23.

• Vietnam: (Labor Day) Offices closed May 1. Normal hours to resume May 2.

• United States: (Memorial Day) Offices closed May 27. Normal hours to resume May 28.

The U.S. Market

Overview

Port of Baltimore opened a third option to carriers to allow barge access to terminals. Depth of available options to Baltimore’s terminals remain too shallow to allow for container vessel access. Surrounding ports continue to support Baltimore as carriers focus on rerouting sailings during bridge repairs. The US Department of Transportation has coordinated efforts with local port authorities to mitigate supply chain disruptions.

International Longshoreman Association (ILA) President announced the union would not work beyond the contract expiration. The union president set a deadline of May 17 to address local issues as a preliminary step towards a broader agreement. It remains unclear if a new deal will be completed before the contract’s September expiration. Those close to the negotiations predict labor issues are unlikely.

• USWC: Congestion and higher volumes reported. Estimated 7 days needed for vessel to rail transfer.

• USEC: Congestion reported in ports with Baltimore diverted traffic. Congestion expected to continue indefinitely.

• USMW: Good conditions reported, volume increases reported.

• USSW: Good conditions and low congestion and lower volumes reported.

Janel Group continues to closely monitor the market and port situation. Updates will be provided as they come available. To secure a booking or explore additional options for your supplier, please reach out to your Janel Group Representative.

Market Update: June 1, 2022

Ocean Freight Market

Overview

Blank sailings via USWC continue to downtrend while USEC blank sailings ramp up. Congestion takes a toll at NY/NJ and Shanghai ports. Despite Trans-Pac trade entering the traditional peak season in June, volumes remain underwhelming as the mitigating elements of worldwide inflation, retail import tapering, Shanghai’s lockdown, and transpacific capacity growth take effect. Shanghai’s much-anticipated re-opening could prove to be the boost that carriers need for a more comprehensive application of Premium rates, but this is yet to be seen.

China Lockdown Update

Our partners advise of a gradual reopening in Shanghai, via public transportation, and places of business in Shanghai are expected June 1. South China’s demand remains stagnant as SE Asia suffers from a lack of capacity and equipment. Meanwhile, although exports remain fluid to a degree, intra-Asia feeder networks and container distribution remain severely compromised, creating vastly different market conditions around the region.

General Rate Increases (GRI)

June 1 GRI implemented with further June 15 increases likely.

Holiday Notices

• Hong Kong: (Dragon Boat Festival) Offices closed June 3. Normal hours to resume June 4.

• China: (Dragon Boat Festival) Offices closed June 3 through 5. Normal hours to resume June 6.

• Taiwan: (Dragon Boat Festival) Offices closed June 3. Normal hours to resume June 4.

• Thailand: (Queen’s Birthday) Offices closed June 3. Normal hours to resume June 4.

• Cambodia: (Queen’s Birthday) Offices closed June 18. Normal hours to resume June 19.

• Indonesia: (Pancasila Day) Offices closed June 1. Normal hours to resume June 2.

• Korea: (Election Day) Offices closed June 1. Normal hours to resume June 2. (Memorial Day) Offices closed June 6. Normal hours to resume June 7.

• Malaysia: (Yang di-Pertuan Agong's birthday) Offices closed June 6. Normal hours to resume June 7.

• Philippines: (Independence Day) Offices closed June 12. Normal hours to resume June 13.

• Vietnam: No June Closings.

• India: No June Closings.

Airfreight Market

Overview

Despite lockdowns across China, air freight exports continue to pick up steam. As lockdowns ease in China, a spike in bookings is anticipated. Massive backlogs of freight once planned for ocean shipping are expected to be booked air in the coming weeks. Additional demand driven by the upcoming Dragon Boat Festival in China is also expected to impact booking needs.

The U.S. Market

Overview

U.S. Export booking and space issues are rising to rival import issues that have been frustrating shippers for the last 2 years. Equipment shortages and rolled bookings are the issue of the day for US exports, specifically reefer containers out of the Mid-West. Congestion continues to trend down as LA/LB seeing the lowest time at birth in 2022. Signal reporting shows average berth times at 14 days and 6.1 days as of the time of writing 6/1/22. A slight uptick in blank sailings to the US East Coast where congestion is growing worse has impacted the availability of direct-call capacity in ports such as Cai Mep, Vietnam. News that the International Longshoremen & Warehouse Union (ILWU) is seeking a break in negotiations over its soon-to-be expiring contract on July 1st with the Pacific Maritime Association (PMA) will likely spur greater demand for capacity to US East Coast ports as shippers to keep a wary eye on negotiations. Due to the high-profile nature of this year’s negotiation and the direct involvement of the current administration, the outlook for negotiations is positive. As reported by JOC - marine terminal operators in the Port of New York and New Jersey are planning new capacity for ultra-large container ships once new dredging is approved which would make New York-New Jersey one of the deepest seaports on the US East Coast.