This week:
- US 90-day reciprocal tariff pause, initially thought to expire this week, will now end on August 1
- Trade groups send letter to CBP and DHS seeking clarity on tariff policy and transshipments
- US de minimis exemption to end for all countries in 2027 as Trump’s signature policy bill passes
- Bipartisan group in Congress introduces bill to reauthorize FMC and add oversight committees
Reciprocal Tariff Pause to End on August 1; Carriers Keep Capacity High
A pause on the Trump administration’s reciprocal tariff policy, initially thought to expire this week, will stay in place until August 1, according to US Secretary of Commerce Howard Lutnick.
The policy, which increases import duties for some US trading partners well past the administration’s 10% baseline tariff, was paused by President Donald Trump on April 9. Since the President and members of his cabinet referred to the reprieve as a “90-day pause,” observers expected the reciprocal tariffs to take effect again this Wednesday, July 9.
However, Trump and Lutnick both said this past weekend that Wednesday is the deadline for countries to negotiate a trade deal with the US, and the new rates will take effect on Friday, August 1.
“Tariffs go into effect August 1, but the President is setting the rates and the deals right now,” Lutnick told reporters as he and Trump prepared to board Air Force One in Morristown, New Jersey, on Sunday.
Meanwhile, ocean carriers have been maintaining high capacity in anticipation of a potential surge in US imports before the return of higher tariffs. Data from ocean visibility provider eeSea shows that westbound trans-Atlantic capacity will hit 344,811 TEUs in July, the highest level in the past 12 months.
Capacity is expected to remain robust in August at 327,226 TEUs. Carriers have only blanked 24,840 TEUs in July, and no blank sailings have been announced for August, further reflecting carrier readiness.
Trade Groups Ask CBP for Clarity Regarding Tariffs and Transshipments
The National Retail Federation and the National Customs Brokers and Forwarders Association of America are among a group of 94 organizations that are pressing US Customs and Border Protection (CBP) and the Department of Homeland Security (DHS) for clarity on tariffs and transshipments.
In a letter dated June 27, the group requests a clear ruling from CBP and DHS on whether goods that were already in transit when new tariffs were imposed on April 5 should be subject to additional duties. The confusion stems from products that left their ports of origin before April 5 but were then transshipped through a secondary port en route to the US.
The trade groups argue that longstanding CBP precedent, specifically the “sale for exportation standard,” should exempt these goods from the tariffs. This standard determines a product’s duty levels based on its original, documented destination being the US, regardless of intermediate stops.
“Numerous CBP rulings clarify that CBP relies on documentary evidence, such as invoices, purchase orders and/or bills of lading when confirming that the ultimate destination for goods always was the United States,” the letter said.
Trade compliance experts have criticized CBP’s initial guidance and a subsequent FAQ posted to its website for being unclear on the issue of transshipment. The coalition’s letter emphasizes that decisions regarding transshipment are often made by ocean carriers and are outside the control of importers, who are ultimately liable for the tariffs imposed.
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Trump’s Policy Bill Repeals De Minimis Exemption for All Countries in 2027
Included in President Trump’s policy and budget bill passed last Friday is language repealing the de minimis exemption, effective July 1, 2027. The exemption allows imports under $800 to enter the country free of duties and taxes.
On May 2 of this year, the Trump administration ended the de minimis exemption for imports from China and Hong Kong, stating that it would later announce a plan to phase it out for all countries. Now that the legislation known as the “One Big Beautiful Bill Act” has been signed into law, the timeline for the end of de minimis is set.
The exemption has been a target for administrations on both sides of the political aisle for years. Lawmakers and regulatory agencies, including the CBP, have argued that the de minimis rule has been responsible for illegal drugs and other contraband entering the US in small packages.
After the change in policy becomes official in 2027, exemptions will remain in place only for bona fide gifts exchanged between foreign and US citizens and for items purchased by travelers abroad.
To combat potential misuse of the trade rule ahead of its repeal, the bill also imposes stiff new civil penalties. Effective as of August, any person attempting to circumvent customs law by using de minimis entry will face a fine of $5,000 for a first offense and $10,000 for subsequent violations.
Congress Introduces Bill Reauthorizing the FMC’s Authority Through 2029
A bipartisan group of lawmakers has introduced a bill in the House of Representatives to reauthorize the Federal Maritime Commission (FMC) through 2029 and to create new oversight committees. If signed into law, the bill would authorize increased funding for the FMC over the next three fiscal years, increasing the agency’s budget from $49.2 million in 2026 to $57 million by 2029.
“Ocean shipping is a critical aspect of America’s national, food, and economic security,” US Representative Dusty Johnson, a co-sponsor of the bill, said. “That’s why our Federal Maritime Commission must be equipped with the proper tools to keep the industry operating above bar.”
Key provisions proposed in the legislation include the creation of two new advisory committees to provide outside counsel to the FMC: One would be comprised of 13 representatives from terminal operators, port authorities, and longshore labor unions. The other would feature six members from ocean carriers and three from freight forwarders or non-vessel-operating common carriers.
The bill also targets the operations of freight pricing platforms, such as the Shanghai Shipping Exchange. The Ocean Shipping Reform Act of 2022 (OSRA-22) requires these shipping exchanges to register with the FMC, but the new legislation would establish a formal process allowing the agency to investigate complaints of “alleged incidents of market manipulation or other anticompetitive practices” by these entities.
