For all the talk about new tires for importing to the United States, it is necessary for importers to move from reading the sensational headlines to understanding and actually implementing the new tariffs.The questions we get include how are the tariffs applied? How can we know if our goods are affected and do these tariffs stack on top of one another?
Broadly speaking, the tariffs imposed by the Trump administration are done so under legal authority granted by Congress.In all cases, their president is empowered to increase tariffs in exceptional cases. Usually this relates to specific cases such as claims of dumping ofspecific product from a specific country. The Trump administration has taken much greater liberty with this authority.
The tariffs imposed are often referred to as IEEP a tariffs, section tariffs, anti-dumping or countervailing duty tariffs. They pretty much mean the same thing a higher tariff.Usually the higher tariff is via a specific commodity code or harmonize classification.But the tariff planned for implementation on April 9 apply across the board to all countries, except Canada, Mexico, Russia, and Belarus.
In the case of Canada and Mexico, goods qualifying under the USMCAA free trade agreement can still import duty-free. Also, for the time being, de minimis imports (or single imports valued under $800) can import duty-free. This exemption will also be taken away first for postal imports, and then broadly expanded to include all such entries.
IEEPA and How Does It Relate to U.S. Tariffs?
The International Emergency Economic Powers Act (IEEPA) grants the president broad authority to impose economic sections, including tariffs and trade restrictions, during declared national emergencies. While not the primary tool for tariffs (like **Section 232** or **301**), IEEPA has been used to enforce trade measures when other legal avenues are insufficient.
See specific countries via tariff "chapter 99 classification"
Key Details on IEEPA
1. Legal Basis and Purpose
Enacted:** 1977 (amended multiple times): Grants the president power to regulate international economic transactions (e.g., tariffs, embargoes, asset freezes) during a **declared national emergency**.It covers threats from foreign countries, entities, or individuals.
2. How It Relates to Tariffs
While tariffs are typically imposed under Section 232 (national security) or Section 301 (unfair trade practices), IEEPA can be used for a broader economic response is needed beyond trade laws.
3. Differences from Section 232/301 Tariffs
Emergency powers law , trade Expansion Act (1962), Trade Act (1974): Triggered in response to a National emergency.Commonly Used for sanctions, embargoes, rare tariffs(such as for steel/aluminum China tech and IP tariffs. Congressional approval is not needed.
Changes to section 321 de minimis entries
How are the Trump tariffs applied via the United States Tariff schedule?
The IEEPA and Section tariffs are applied via chapter 99 tariffs of the United States tariff schedule.These tariffs are applied in addition to the standard tariff.And when updated properly. There will be a reference to the chapter 99 tariff via a footnote on the actual tariff classification for the specific good.
The country specific tariffs are in addition to the standard tariff.They are not in addition to the section 232 or 30 one tariffs.
The most certain way to confirm what your new tariff will be is to check with your customs broker. Customs brokers have the most up-to-date access to the US Customs data.
