May 2025 | Customs & International Trade Law Blog

What Happened This Month in International Trade – May 2025

Another busy month in international trade news – Trump tariffs ruled unlawful, China tariff pause, UK trade deal, and more. Here’s the full roundup:

Administration

President Trump signed an Executive Order reducing the reciprocal tariff on China from 125% to 10% for 90 days.
The US & UK reached a trade deal, allowing the import of UK aerospace engines and parts duty-free. The average tariff on U.K. goods will stay at 10%.

Customs and Border Protection (CBP)

CBP released their April 2025 monthly update. Highlights:
- Successfully implemented tariffs guided by 21 presidential actions
- Identified $117 million in duties and fees owed to the U.S. government
- Stopped 140 shipments for further examination based on the suspected use of forced labor
CBP released a notice outlining refund procedures to implement President Trump’s executive order on tariff stacking.
CBP updated its Section 232 tariff FAQ, clarifying that an exemption from reciprocal tariffs for goods subject to Section 232 tariffs only applies if duties are “owed and payable.”

Court of International Trade (CIT)

On May 28, the CIT ruled against

By Jennifer Diaz|2025-05-30T09:54:48-04:00May 30, 2025|news, Snapshot|Comments Off

Courts Say Trump Tariffs Are Unlawful, Now What??

This week, three courts weighed in on President Trump’s imposition of tariffs through the International Emergency Economic Powers Act (IEEPA).

Court of International Trade (CIT)

On May 28, 2025, the CIT ruled against President Trump’s imposition of worldwide tariffs through IEEPA. The CIT Opinion covers both the IEEPA Reciprocal Tariff, which was invoked on April 2 on global imports, and the IEEPA Fentanyl Tariff, which President Trump ordered earlier on Canada, Mexico, and China.

The CIT found that the power to “regulate importation” does not authorize the President to “impose whatever tariff rates he deems desirable.” Further, the CIT also found that unlimited delegation of tariff power from Congress to the President is unconstitutional under the nondelegation and major questions doctrine.

Along with the decision, the CIT issued an order that the IEEPA tariffs be revoked and that the government has 10 calendar days (until June 7) to effectuate the order.

Court of Appeals for the Federal Circuit (CAFC)

In response to the CIT ruling, the Government filed an appeal to the Court of Appeals for the Federal Circuit (CAFC) and a motion to stay the CIT order for at least 7 days to allow the CAFC to consider their appeal.

In its motion, the Government argued that the CIT’s decision is rife with legal error and disarms the U.S. “in the face of the longstanding predatory trade practices of other countries.”

On […]

By Jennifer Diaz|2025-05-30T09:22:33-04:00May 30, 2025|Tariffs|Comments Off

AD/CVD News: Initiation of AD/CVD Investigations on Silicon Metal from Angola, Australia, Laos, Norway, and Thailand

On April 24, 2025, Ferroglobe USA, Inc. and Mississippi Silicon LLC (collectively, “Petitioners”) filed an antidumping and countervailing duties petition on ferrosilicon from Angola, Australia, Laos, Norway, and Thailand.

Background on AD/CVD Investigations

Antidumping duty (“AD”) and countervailing duty (“CVD”) investigations are brought jointly by the U.S. International Trade Commission (“USITC”) and the U.S. Department of Commerce (“Commerce”). AD investigations are triggered when a domestic industry alleges that it has been injured by competing imports of particular goods from specific countries being sold at less than a fair value. Meanwhile, CVD investigations are triggered when a domestic industry alleges that it has been injured by competing imports that are being unfairly subsidized by their governments. The domestic industry initiating the investigation is known as the petitioner while the foreign industry participating in the investigation is known as the respondent.

Scope of the Investigation

The merchandise covered is all forms and sizes of silicon metal, including silicon metal powder. Silicon metal contains at least 85.00 percent but less than 99.99 percent silicon, and less than 4.00 percent iron, by actual weight. Semiconductor grade silicon (merchandise containing at least 99.99 percent silicon by actual weight and classifiable under Harmonized Tariff Schedule of the United States (HTSUS) subheading 2804.61.0000) is excluded from the scope of this investigation.

Silicon metal is currently classifiable under subheadings 2804.69.1000 and 2804.69.5000 of the HTSUS. While the HTSUS numbers are provided for convenience and customs purposes, the written description of the scope remains dispositive.

Next Steps

On May 21, 2025, the U.S. Department […]

By Jennifer Diaz|2025-05-29T07:59:15-04:00May 29, 2025|AD/CVD, U.S. Department of Commerce (DOC)|Comments Off

Breaking Trade News: 50% EU Tariffs, USMCA 232 Auto Savings, Tariffs in Court

Here is a recap of the latest customs and international trade news:

Administration:

President Trump posted on Truth Social that he is recommending a 50% tariff on the EU starting June 1st, claiming that negotiations with the EU are “going nowhere.”
President Trump posted on Truth Social that he expects Apple’s iPhones to be manufactured in the United States, threatening a 25% tariff if they are manufactured elsewhere.

Customs and Border Protection (CBP)

CBP’s Office of Trade’s National Commodity Specialist Division (NCSD) announced several webinars in June as a part of the 2025 NCSD webinar series.
CBP has replaced the list of subheadings for commodities of energy and energy resources of Canada subject to 10% tariffs, IEEPA fentanyl tariffs.
CBP reminds the pharmaceutical trade community of their legal obligations in light of ‘most-favored-nation’ drug-pricing requirements.
CBP officers in Houston seized counterfeit Apple phone chargers worth over $7 million.

Department of Commerce

Commerce published a federal register notice establishing a process to reduce Section 232 tariffs on vehicles. In the notice, Commerce suggested that automakers will be able to save about $10 billion annually on USMCA-qualifying vehicles imported from Canada or Mexico by submitting documentation to the International Trade Commission […]

By Jennifer Diaz|2025-05-23T11:35:24-04:00May 23, 2025|news, Snapshot|Comments Off

AD/CVD News: Petition on Hardwood and Decorative Plywood from Indonesia, the People’s Republic of China, and the Socialist Republic of Vietnam

On May 22, 2025, Colombia Forest Products, Commonwealth Plywood Co., Ltd., Manthei Wood Products, States Industries LLC, and Timber Products Company (collectively, “Coalition for Fair Trade in Hardwood Plywood” or “Petitioners”) filed antidumping and countervailing duties petitions on hardwood and decorative plywood from Indonesia, the People’s Republic of China, and the Socialist Republic of Vietnam.

Antidumping duty investigations are administered by the U.S. Department of Commerce (DOC) and the U.S. International Trade Commission (“ITC”). Dumping occurs when a foreign company sells a product to the United States below its normal value or cost of production. Subsidy is defined by a foreign government providing financial assistance to a foreign company for manufacturing or exportation.

The scope of the petition (subject to change during the investigation) covers:

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Hardwood and decorative plywood, and certain veneered panels as described below. For purposes of this proceeding, hardwood and decorative plywood is defined as a generally flat, multilayered plywood or other veneered panel, consisting of two or more layers or plies of wood veneers in combination with a core or without a core. The veneers, along with the core, may be glued or otherwise bonded together. A hardwood and decorative plywood panel must have at least either the face or back veneer composed of one or more species of hardwood, softwood, or bamboo. Hardwood and decorative plywood may include products that meet the American National Standard for Hardwood and Decorative Plywood, ANSI/HPVA HP- 1-2024 (including any revisions to […]

By Jennifer Diaz|2025-05-22T16:35:06-04:00May 22, 2025|AD/CVD, U.S. Department of Commerce (DOC)|Comments Off

Breaking Trade News: China Reciprocal Tariffs Paused, CBP Monthly Update, IEEPA Tariff Case in Court

Here is a recap of the latest customs and international trade news:

Administration

President Trump signed an Executive Order reducing the reciprocal tariff on China from 125% to 10% for 90 days.

Customs and Border Protection (CBP)

CBP released their April 2025 monthly update. Highlights:
- Successfully implemented tariffs guided by 21 presidential actions
- Identified $117 million in duties and fees owed to the U.S. government
- Stopped 140 shipments for further examination based on the suspected use of forced labor
CBP released a notice outlining refund procedures to implement President Trump’s executive order on tariff stacking.
CBP published guidance clarifying what facilities can be considered bonded warehouses. Bonded warehouses don’t include container freight stations, inspectional facilities, or express consignment facilities.
CBP published an update to their FAQs clarifying that goods loaded onto feeder vessels before reciprocal tariffs took effect, but transferred to another vessel after, aren’t eligible for an exemption from the tariffs for in-transit goods.
CBP released guidance on the decrease of the reciprocal tariff rate on China to 10% as provided in the executive […]

By Jennifer Diaz|2025-05-16T09:42:59-04:00May 16, 2025|news, Snapshot, Uncategorized|Comments Off

Breaking Trade News: U.S. and China Jointly Agree to Halt the Current Trade War

On May 12, 2025, the White House and the State Council of China jointly published statements putting a pause on the ever-escalating trade war. This bilateral trade negotiation took place in Geneva during the weekend between May 10-11.

According to the joint statement, China will lower the tariff on American imports to 10% for 90 days beginning May 14, 2025. The U.S. will simultaneously lower the China specific 125% Reciprocal Tariff to 10% for 90 days beginning May 14, 2025. Currently, the U.S. has imposed a 10% IEEPA Reciprocal Tariff on all imports, except USMCA qualified goods. The Geneva negotiation essentially put China, U.S.’s third largest trading partner, in line with all other countries. However, other duties will continue to apply to Chinese imports, including Section 301 Tariff, Section 232 Tariff, and the IEEPA Fentanyl Tariff. Nonetheless, this weekend negotiation drastically lower tariff on Chinese import by 115%, a significant move since President Trump’s Liberation Day.

Breaking Trade News: US-UK Trade Deal, China Trade Talks, 232 Tariff Update

Here is a recap of the latest customs and international trade news:

Administration

The US & UK reached a trade deal, allowing the import of UK aerospace engines and parts duty-free. The average tariff on U.K. goods will stay at 10%.
The first negotiations between the US and China will begin this weekend in Switzerland. China will be represented by Vice Premier He Lifeng, and the U.S. will be represented by Treasury Secretary Scott Bessent and United States Trade Representative Jamieson Greer.
In a hearing in front of the House Financial Services Committee, Treasury Secretary Scott Bessent said that exempting tariffs on some baby items such as car seats and cribs is “under consideration.”
President Trump told reporters that USMCA may no longer be necessary, calling it a transitional deal to move away from NAFTA.
Via a social media post, President Donald Trump authorized the Department of Commerce and the United States Trade Representative to begin the process of instituting a 100% tariff on movies coming into the U.S. that are produced in other countries.

Customs and Border Protection (CBP)

CBP updated its Section 232 tariff FAQ,

By Jennifer Diaz|2025-05-09T12:09:30-04:00May 9, 2025|news, Snapshot, Uncategorized|Comments Off

DoJ Declines Prosecution of Company That Self-Disclosed Export Control Offenses

The Justice Department announced that it will not be prosecuting Universities Space Research Association (USRA) for violations of U.S. export control laws, citing prompt self-disclosure and cooperation.

EAR Violation

In 2016, USRA was granted a contract with NASA to license and distribute

aeronautics-related and U.S. Army-owned flight control software. Jonathan Soong was employed by USRA and was responsible for performing due diligence on prospective purchasers. Soong willfully exported software subject to the Export Administration Regulations (EAR) to Beijing University, knowing that an export control license was required for the export because it was on the Entity List.

Soong used an intermediary to avoid detection, and embezzled tens of thousands of dollars in software license sales. He ultimately plead guilty to willfully violating the EAR. He was sentenced to 20 months in prison.

Company Disclosure & Remediation

Within days of learning of Soong’s actions, USRA self-disclosed the violation to the Department’s National Security Division (NSD). The company fully cooperated with the ensuing criminal investigation, which eventually established that Soong had acted alone.

USRA’s cooperation included proactively collecting and disclosing evidence and providing detailed and timely responses to the government’s requests for information. USRA remediated the root cause of the misconduct by disciplining an employee who failed to appropriately supervise Soong, and by improving its internal controls and compliance program.

USRA also compensated the government both for the funds Soong embezzled, and for the time Soong had spent embezzling funds instead of performing his duties under the contract with NASA.

The DoJ cited the timely disclosure, cooperation, and remediation […]

By Jennifer Diaz|2025-05-07T16:07:04-04:00May 7, 2025|EAR, Export|Comments Off

Breaking Trade News: Tariff Stacking, Auto Tariff Credit, 301 Report

Here is a recap of the latest customs and international trade news:

Administration

President Trump signed a Proclamation amending tariffs on automobiles and auto parts. Automakers who build cars in America and import parts to do so will get a partial credit against the costs of 25% Section 232 tariffs on non-USMCA qualifying parts.
President Donald Trump issued an Executive Order clarifying the applicability of recently imposed tariffs, specifically tariff “stacking.” Goods subject to Section 232 tariffs on automobiles will not also be subject to Canada and Mexico IEEPA tariffs or 232 tariffs on steel & aluminum. Goods subject to Canada and Mexico IEEPA tariffs will not also be subject to 232 steel & aluminum tariffs.

Customs and Border Protection (CBP)

CBP updated its tariff FAQs clarifying that exemptions from reciprocal tariffs for goods that were in transit on April 5 or 9 only apply to ocean vessels.
CBP updated its IEEPA FAQs clarifying that if you are subject to aluminum and steel tariffs, you are not subject to reciprocal IEEPA tariffs.
CBP ruled that a partial duty exemption for U.S.-origin materials exported to a third country for assembly will not apply […]

By Jennifer Diaz|2025-05-02T10:47:58-04:00May 2, 2025|news, Snapshot|Comments Off