Let’s Talk Tariffs with Jamie Rodgers: Canadian Tariffs Change Again, a New Lawsuit Emerges & CBP Updates ACE

Your weekly coffee chat on tariffs & trade.

We’re closing out October with another round of changes to Canadian tariffs, and this one is worth a closer look.

On October 23, President Trump signed an executive order adjusting which Canadian products are subject to the additional 50% Section 338 tariffs. Some products will see relief beginning October 30, while others will face new duties.

For importers, these changes can have a very real impact on purchasing decisions, pricing and long-term planning.

I’ve spoken quite a bit about the importance of flexibility in this environment, and I think this week’s developments are a good example of why.

Businesses need to make decisions today, even when the rules affecting those decisions may change tomorrow.

We’re also seeing a new legal challenge to Section 338 and some important updates to CBP’s Automated Commercial Environment.

There’s plenty to discuss this week.

What Caught My Eye

The latest Section 338 adjustments caught my attention because of how differently they’ll affect businesses importing from Canada.

Beginning October 30, certain plywood, plastics, corrugated cartons and other packaging, wood and paper products will no longer be subject to the additional 50% tariffs.

That’s meaningful relief for companies sourcing those materials.

At the same time, certain carpets, vinyl flooring, window air conditioners, paints and cocoa powders are being added to the list.

What stands out to me is how much the impact depends on the specific product.

Two businesses could have very similar sourcing arrangements in Canada and experience completely different outcomes under these changes.

That’s why I always encourage importers to look beyond the headlines and understand exactly how a new tariff measure applies to their merchandise.

Classification, country of origin, effective dates and overlapping duties all matter.

And when we’re talking about an additional 50% tariff, even a relatively small oversight can become a significant expense.

At J.M. Rodgers, we spend a great deal of time helping businesses understand the details behind their customs entries. It’s work that doesn’t always get much attention, but it’s especially valuable when regulations are changing this frequently.

Here’s My Take

The new lawsuit challenging Section 338 is another development I’ll be following closely.

On October 20, New Jersey-based food importer Gellert Global Group filed a case in the Court of International Trade questioning the administration’s authority to impose these tariffs.

The company is also seeking class-action status on behalf of importers that have paid or may pay Section 338 duties.

It’s an interesting development, particularly given the other tariff-related litigation we’ve been following this year.

I think we’re seeing just how closely trade policy and the legal system have become connected.

For businesses, that creates another layer of uncertainty.

A company may be evaluating a new supplier, negotiating a contract or building next year’s budget while the tariffs affecting those decisions are being challenged in court.

And there’s no simple way to predict how those cases will unfold.

My view is that businesses should continue operating under the rules currently in effect while staying informed about developments that could change their obligations.

I’d also encourage importers to maintain detailed records of the duties they’re paying.

We’ve seen how important historical entry data has become throughout the IEEPA refund process. While there’s no guarantee this Section 338 litigation will result in similar opportunities, having organized records puts businesses in a much better position to respond to whatever happens.

I think that’s a sensible approach regardless of how the case develops.

If It Were My Business…

My first priority would be reviewing our Canadian imports before the October 30 changes take effect.

I’d want our customs, purchasing and finance teams working from the same information, particularly when evaluating landed costs.

If we’re sourcing a product that’s coming off the tariff list, that could create an opportunity to revisit pricing or purchasing plans.

If we’re importing something that’s being added, we’d need to understand the additional costs and determine whether any adjustments make sense.

I’d also spend some time reviewing the latest ACE updates.

CBP recently deployed enhancements to its Electronic Export Manifest system for truck cargo, along with another phase of ocean manifest modernization.

These improvements are part of the continued evolution of customs processing, something I’ve watched change considerably throughout my career.

The technology available today gives businesses and customs professionals capabilities that simply didn’t exist years ago.

But successful implementation still depends on accurate information, reliable systems and people who understand the process.

For carriers and freight forwarders, I’d recommend confirming that electronic transmissions and related workflows are functioning properly following the updates.

There’s also a recent change involving ACH refund accounts that deserves attention.

CBP now requires multi-factor authentication when banking information is updated for certain refund payments, including duty drawback and IEEPA refunds.

I support measures that help protect those funds.

At the same time, businesses should make sure their account contacts and verification information are current.

A refund process can involve a considerable amount of work, and it’s important that an outdated email address or account setting doesn’t create an unnecessary delay at the final stage.

One for the Road

Looking ahead, the Section 338 lawsuit will certainly be one to watch.

It’s still early, and we’ll need to see how the Court of International Trade approaches the challenge.

We’re also monitoring CBP’s proposal for heightened import disclosures, with public comments due December 1.

The potential for additional supply chain documentation is another reminder of how much customs compliance has expanded beyond the entry process itself.

I think that’s one of the biggest changes I’ve seen in this industry.

Customs decisions now influence nearly every part of an international business, from sourcing and purchasing to financial planning and inventory management.

And with tariffs changing as frequently as they have this year, those connections are becoming even more important.

One thing I’ve always appreciated about working in this industry is that there’s always something new to learn. Even after decades in the business, trade policy has a way of keeping everyone engaged.

At J.M. Rodgers, we’ve been helping companies navigate these challenges for 75 years, and the importance of preparation, communication and sound customs practices remains as relevant as ever.

As we head into November, my advice is to keep your teams informed, stay close to your customs data and make sure you’re evaluating how these developments affect your specific business.

See you next week.

Jamie Rodgers
CEO, J.M. Rodgers Co.