Tariff Watch: Section 232 Aircraft Proclamation, HTS Updates, and De Minimis Deadlines

Welcome back (or if this is your first time here, welcome) to Tariff Watch, the weekly update from J.M. Rodgers designed to keep busy supply chain leaders informed on the latest US trade news.

As we enter the middle of July, the administration has taken steps in the name of national security that could affect importers in high-profile industries, while the trade community wrestles with reporting changes. Here’s what you need to know this week:

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What’s New

• A Section 232 proclamation on commercial aircraft and engines: On July 9, the administration issued a new Section 232 Presidential Proclamation directing the Secretary of Commerce and the US Trade Representative (USTR) to aggressively pursue negotiations with trading partners regarding imports of commercial aircraft and engines.
• The Department of Commerce initiated a Section 232 investigation into coal: On July 6, the DoC officially launched a Section 232 national security investigation into anthracite coal imports. This sets the stage for potential tariffs or quotas on the energy and metallurgy staple.
• The mid-year US HTS updates went into effect: The Committee for the Statistical Annotation of Tariff Schedules, aka the 484(f) Committee, rolled out updates to the US Harmonized Tariff Schedule (HTS) reporting numbers earlier this month. US businesses spent their first full week dealing with changes to the 10-digit import/export codes for everything from wood and plastics to mechanical and electrical equipment.

Who’s Impacted

This week’s news affects a broad range of supply chain activity, from massive aerospace procurement to the granular details of customs data entry. Here’s who’s impacted:

• The aerospace and aviation industries: The July 9 Section 232 proclamation regarding commercial aircraft and engines puts manufacturers, airlines, and specialized component importers on high alert, as the outcome of the USTR negotiations could directly affect the cost of vital parts and fleet acquisitions.
• Energy and heavy manufacturing sectors: The new Section 232 probe into Anthracite Coal will closely affect the metallurgy, water filtration, and domestic steelmaking industries, which rely on this specific grade of coal for their manufacturing processes.
• All customs brokers and filers: The recent HTS updates affect virtually any business that files customs declarations. Submitting outdated or discontinued numbers will now result in entry transmission errors and likely rejected filings — both of which can lead to clearance delays at the border.

What We’re Seeing

In response to the latest news, supply chain leaders quickly went into action. Here’s how we see them react:

• Businesses are rushing to update their master trade data: In response to the July HTS changes, trade compliance teams are proactively auditing their ERP systems and product databases. They are working closely with their customs brokers to ensure they use the newly mandated 10-digit statistical reporting codes and avoid costly ACE transmission errors that could delay their freight.
• Aerospace supply chains are modeling new cost scenarios: With Section 232 negotiations concerning commercial aircraft and engines officially mandated, industry leaders are stress-testing their long-term procurement contracts. Many are identifying alternative domestic suppliers in anticipation of new tariffs or quotas on imported aerospace components.
• E-commerce shippers are bracing for a post-de minimis reality: Following CBP’s late-June Interim Final Rules, which indefinitely suspend the $800 de minimis exemption, many B2C retailers are thoroughly revamping their import strategies. Some are shifting away from direct-to-consumer foreign fulfillment and instead setting up bonded warehouses or domestic distribution centers to meet the new entry requirements for low-value goods.

What We’re Monitoring

In addition to this week’s news, we’re noting significant action on these ongoing stories:

• Pushback on 60-country Section 301 tariffs: We’re seeing a groundswell of political and industry pushback against the proposed Section 301 tariffs on forced labor. Last week, a coalition of 22 state Attorneys General and the Senate Finance Committee Ranking Member formally urged the USTR to abandon the proposal altogether, arguing that it would operate as a backdoor to revive invalidated global tariffs and inflate consumer costs.
• The July 24 de minimis public comment deadline: We’re closely watching the docket for CBP’s Interim Final Rules that indefinitely suspended the $800 de minimis duty exemption across all modes of transport. The public comment period closes on July 24, and the industry’s response will shape how CBP ultimately implements its new electronic postal informal entry process (Entry Type 13) slated for testing in September.
• The countdown to the Section 122 expiration: By statute, the Section 122 global tariffs will expire on July 24. Yet, the Trump admin has remained remarkably quiet on the subject. We’re watching daily to see whether they will allow the 10% surcharge to expire or if they see the proposed Section 301 forced-labor tariffs as a permanent replacement.

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Sources

• Trump Announces Negotiations Based on Section 232 Aircraft and Engine Findings, SmarTrade
• Admin Initiates Section 232 Investigation of Anthracite Coal Imports, White & Case
• 2026 HTS Revision 11, HTS.USTIC.gov
• CBP Issues Final Rules Indefinitely Suspending De Minimis Exemption, SmarTrade
• Democratic AGs Oppose Trump Plan to Impose Section 301 Tariffs, Reuters
• CBP Introduces New Postal Entry Requirements, BDO USA