Global tariffs impacting supply chains

Global Tariff Updates Impacting Steel, Aluminum, USMCA, Canada, China, and the EU

In our previous communication, we informed you about the February 10, 2025, Executive Order introducing new tariffs on aluminum and steel imports, effective March 12, 2025. We’re now sharing additional details on how these changes impact derivative products and the adjustments required for your commercial invoices to comply with U.S. Customs and Border Protection (CBP) regulations. Additionally, we want to provide the latest updates on tariff changes between the United States, Canada, Mexico, China, and the European Union (EU), which may affect your supply chain. Maersk Customs Services is here to help you navigate these developments and ensure your operations remain compliant and efficient.

Steel & Aluminum Tariffs

The 25% tariff on steel and aluminum imports took effect on March 12, 2025, at 12:01 a.m. Eastern Time.

Derivative products now impacted:

Aluminum Derivatives: Wire, cables, bumper stampings, body stampings, and other fabricated parts. For a complete list of affected products, click here.

Steel Derivatives: Nails, fasteners, vehicle parts, pipes, tubes, and construction materials. For a complete list of affected products, click here.

Foreign Trade Zones (FTZs) Affected: Goods admitted under “privileged foreign status” before March 12, 2025, remain subject to these tariffs.

New Reporting Requirements:

• For aluminum imports, importers must report:
• Primary country of smelt
• Secondary country of smelt
• Country of cast
• For steel imports, importers must report:
• Country where the steel was melted and poured

New Invoicing Requirements

To ensure proper tariff assessment and compliance, importers must adjust how products are listed on commercial invoices:

Wholly Steel or Aluminum Products

Products entirely made of steel or aluminum will remain on a single invoice line with the full value of the product assessed at the applicable tariff rate.

Derivative Products Containing Steel or Aluminum

• Must be separated on the commercial invoice into two distinct lines:
• One line for the steel or aluminum portion of the finished product.
• A separate line for the other materials (e.g., plastic, rubber, or other metal components).
• The additional duties will only apply to the value of the steel or aluminum content, not the entire finished product.

For reference, see this invoice example.

Next Steps

• Review Your Product Classifications to determine if your aluminum or steel derivatives fall under the affected tariff codes.
• Update Your Commercial Invoice Structure to properly list wholly steel/aluminum products and derivative products separately for accurate tariff application.
• Ensure Supplier Compliance by obtaining correct smelting, casting, and pouring origin details from manufacturers.
• Monitor CBP Announcements for further instructions via CBP’s Cargo Systems Messaging Service.

EU Countermeasures on U.S. Steel and Aluminum Tariffs

With the 25% on imports of steel, aluminum, and certain products containing steel and aluminum from the European Union (EU) and other trading partners, the EU has launched a series of countermeasures.

The EU’s response includes two key actions:

1. Reimposition of Suspended Countermeasures: On April 1, 2025, the EU will has announced the 2018 and 2020 rebalancing measures that were previously suspended. These measures will apply tariffs on a range of U.S. goods, including boats, bourbon, and motorbikes.
2. New Package of Additional Measures: The EU is also preparing a new package of countermeasures targeting approximately €18 billion worth of U.S. goods. These measures will complement the reimposed tariffs and are designed to ensure a proportionate response to the increased scope of U.S. tariffs. The EU is currently consulting with stakeholders to finalize the list of targeted products, which includes industrial goods (e.g., steel, aluminum, textiles, plastics) and agricultural products (e.g., poultry, beef, dairy, nuts).

The EU’s countermeasures are expected to take full effect by mid-April 2025, following consultations with EU Member States and stakeholders.

U.S. Tariff Update – USMCA Products from Canada & Mexico

The United States has removed tariffs on certain Canadian and Mexican imports under the United States-Mexico-Canada Agreement (USMCA) until April 2nd. This change benefits businesses importing qualifying goods from Canada and Mexico.

However, it is crucial to remember that not all products qualify for USMCA benefits simply because they originate or are manufactured in the U.S., Canada, or Mexico. Goods must still:

• Be sufficiently transformed according to USMCA rules
• Meet product-specific rules of origin outlined in the agreement

If you need assistance in verifying your products' eligibility under USMCA, our Maersk’s customs compliance team is available to help ensure compliance and maximize duty savings.

Canada’s Tariff Policy Update

Canada will maintain its Phase 1 tariff measures on select U.S. products effective March 4th but has paused the planned Phase 2 tariffs until April 2nd. This means that while certain U.S. goods remain subject to existing Canadian tariffs, no additional tariff rounds will be implemented on March 25th as originally announced.

We recommend reviewing your imports to assess the impact of these measures. Our team can provide tariff classification assistance and strategic guidance to mitigate cost implications.

China's Retaliatory Tariffs on Canada

In retaliation to Canada's tariffs on Chinese goods, China has announced that, effective March 20, 2025, it will impose:

• 100% tariffs on:
• Rapeseed oil
• Peas
• Oilcakes
• Annex 1 List of goods subject to additional 100% tariff.pdf
• 25% tariffs on:
• Aquatic fish/seafood products
• Pork
• Annex 2 List of goods subject to additional 25% tariff.pdf

These measures are in response to Canada's earlier tariffs on Chinese electric vehicles, steel, and aluminum products. Detailed information on China's tariff measures can be found in the official announcement by China's Ministry of Commerce.

We are here to help

Maersk Customs Services is committed to helping you navigate these evolving trade policies. Our Customs Compliance Team can assist with:

• USMCA Eligibility Reviews: Ensuring your products meet the rules of origin.
• Tariff Classification & Duty Analysis: Identifying cost-saving opportunities.
• Trade Compliance Strategy: Mitigating risks and optimizing supply chain efficiency.
• Tariff Classification: Ensuring accurate classification of your goods.
• Invoice Formatting: Adjusting commercial invoices to comply with new tariff requirements.
• Compliance Strategies: Developing tailored strategies to ensure adherence to evolving regulations.

We are here to support you with your logistics needs and will continue to provide customer advisories and updates as the situation develops.

For assistance regarding US regulations, please contact us at: compliance.mcsi.nam@maersk.com. For inquiries related to Canadian regulations, reach out to compliance.ca.mcsi.nam@maersk.com.

Navigating Tariff Changes Additional Duties Now in Effect for Imports from China, Hong Kong, Canada & Mexico

The US government has announced new and increased tariffs on imports from China, Hong Kong, Canada and Mexico through multiple Executive Orders. As your logistics partner, we want to keep you informed of these developments, help you navigate this changing landscape, and minimize disruption to your supply chain.

What is changing on March 4, 2025?

• 25% additional duty applies to most imports from Mexico (HTS 9903.01.01)
• Exemptions include humanitarian aid and informational materials (books, films, etc.)
• If you use Foreign Trade Zone (FTZ), you must enter goods as "Privileged Foreign Status" and will be subject to duties upon withdrawal.
• These duties cannot be refunded through drawback claims.

• 25% additional duty applies to most Canadian-origin goods (HTS 9903.01.10).
• 10% additional duty applies to Canadian energy products (HTS 9903.01.13), including crude oil, natural gas, and critical minerals.
• Exemptions include humanitarian aid and informational materials.
FTZ impact & no drawback – Same restrictions apply as with Mexico.

• Duty rate has doubled from 10% to 20% on most imports (HTS 9903.01.24).
• Exemptions include humanitarian aid and informational materials.
• If your goods were in transit before Feb 1, 2025, they may qualify for exemption if entered before March 7, 2025 (HTS 9903.01.23).
• FTZ impact & no drawback – Similar to Canada & Mexico, affected goods must enter FTZs under "Privileged Foreign Status."

For steel & aluminum import tariffs, please reference our previous communication.

These new duties are in addition to all other tariffs, including USMCA and existing trade remedies. US Customs and Border Protection (CBP) will reject entries that are non-compliant, including those without proper duty deposits. Importers must ensure accurate product classification and duty calculation to avoid penalties.

• Review your supply chain to Identify affected products and assess cost increases.
• Verify your HTS codes and duty amounts are reported correctly.
• Consider duty mitigation strategies through FTZs, alternative sourcing, or compliance planning.
• Prepare for proper compliance to avoid shipment delays, penalties, and financial risk.

• The Canadian Government will implement a 25% tariff, starting on March 4.
• The Chinese Government will implement tariffs for goods originating in the US, starting on March 10.
• The Mexican Government has not yet announced its retaliatory tariffs.

We are here to support you with your logistics needs and will continue to provide customer advisories and updates on reciprocal tariff announcements as the situation develops.

Our Global Trade and Customs Consulting (GTCC) service at Maersk is here to simplify the complexities of international trade and customs processes. With a global presence across North America, Europe, the Indian subcontinent, the Middle East, Asia, and Africa, Maersk GTCC can help your business manage the customs landscape, reduce risks, and identify opportunities for cost savings and improved efficiency.

For assistance regarding US regulations, please contact us at: compliance.mcsi.nam@maersk.com. For inquiries related to Canadian regulations, reach out to compliance.ca.mcsi.nam@maersk.com.

Navigating Tariff Changes: Steel and aluminum imports into the United States

Recent announcements regarding tariffs on steel and aluminum imports into the United States may impact your supply chain. As your logistics partner, we want to keep you informed of these developments and help you navigate this changing landscape.

Effective March 12, 2025, the following updates will apply:

1. Revision of Tariff Structure: All steel and aluminum imports, including derivative products, will be taxed at 25% with few exceptions. Previous duty modifications based on country-specific agreements are repealed. Steel and steel derivatives from Turkey will also incur a 25% tariff.

a. Click here for the full list of aluminum products
b. Click here for the full list of steel products

2. Elimination of Exemptions: Exemptions and quotas for countries including South Korea, Argentina, Australia, Brazil, Canada, Mexico, the EU, Japan, the UK, and Ukraine will be revoked. All steel imports from these countries will be subject to the 25% tariff.
3. Expanded coverage:

a. Steel Derivative Products: Products listed under heading 9903 in the HTSUS will incur a uniform 25% tariff, regardless of country of origin. However, steel derivatives processed in another country will not be subject to the tariff if the steel was originally "melted and poured" in the United States.
b. Aluminum Derivative Products: Products listed under heading 9903 in the HTSUS will also incur a uniform 25% tariff (increased from 10%). Aluminum derivatives processed in another country will not be subject to the tariff if the aluminum was originally "smelted and cast" in the United States.

4. Russia-specific tariff increases: Any aluminum article or derivative aluminum product containing Russian-origin primary aluminum is subject to a 200% tariff.
5. Prohibition of Drawback (Refunds): No refunds will be allowed on duties paid under this proclamation.

Please refer to the frequently asked questions about the new steel and aluminum import tariffs.

We are here to support you with your logistics needs and will continue to provide customer advisories and updates on reciprocal tariff announcements as the situation develops.

Our Global Trade and Customs Consulting (GTCC) service at Maersk is here to simplify the complexities of international trade and customs processes. With a global presence across North America, Europe, the Indian subcontinent, the Middle East, Asia, and Africa, Maersk GTCC can help your business effectively manage the customs landscape, reduce risks, and identify opportunities for cost savings and improved efficiency.

For assistance regarding US regulations, please contact us at: compliance.mcsi.nam@maersk.com.

Navigating Tariff Changes - Strategies for Mitigating Impact on Your Supply Chain

As we have previously communicated and as you are no doubt aware, there have been recent announcements and changes to tariffs and legislation. As your logistics partner, we aim to keep you informed of developments that could affect your supply chain, understanding that these changes may create uncertainty. We are committed to helping you navigate this evolving landscape.

Please refer to the frequently asked questions about the new import tariffs.

We encourage importers to stay informed, proactive, and prepared to navigate the evolving trade landscape of 2025.

Our Global Trade and Customs Consulting (GTCC) service aims to simplify the complexities of international trade and customs processes. Operating globally, with a presence in North America, Europe, the Indian subcontinent, the Middle East, Asia, and Africa, Maersk GTCC can help businesses manage the customs landscape effectively. This partnership can assist in reducing risks while identifying potential opportunities for cost savings and improved efficiency.

For assistance regarding US regulations, please contact us at: compliance.mcsi.nam@maersk.com. For inquiries related to Canadian regulations, reach out to compliance.ca.mcsi.nam@maersk.com.

To address these challenges, here are some strategies to help mitigate the impact of increased tariffs:

Tariff Mitigation Strategies

• Setting up ACH accounts: Automated Clearing House (ACH)
  • Direct electronic payment from your bank account to U.S. Customs.
  • Timely duty payments, reduced processing times, longer payment cycle
• Tariff engineering
  • Ensuring your goods are classified under the correct HTSUS (Harmonized Tariff Schedule of the United States) and Canadian HS Tariff provisions to benefit from lower duty rates.
    *Please note, any reclassification of goods will only impact the regular duty rate, additional duties applied to all tariff numbers will still be in effect.
• New sourcing
  • Rearrange the sourcing of raw materials, components, or finished goods to countries that are not subject to the new tariffs.
  • Shifting production to countries with favorable trade agreements with the U.S. and Canada or sourcing materials from alternative suppliers.
• Bonded warehouses and Temporary Import Bonds (TIB)
  • Bonded warehouses allow you to store goods without paying duties until they’re used or sold, deferring duty payments and providing significant cash flow benefits.
  • Temporary Import Bonds (TIB) are used for goods that are imported for a specific purpose and will be re-exported within a certain period. This allows you to avoid duties on goods that are not intended for long-term importation.

Advocacy for Tariff Reduction

Currently, no exemptions or exclusions are available, but it’s important to know the process in the event these circumstances change. If exemptions or exclusions become accessible, consider the following.

Getting involved with legislative bodies and regulatory agencies to influence trade policies and secure tariff reductions is crucial. Here’s how you can engage:

• Seeking Section 301 Exclusions by applying for exemptions from certain tariffs under the Trade Act of 1974.
• Advocating for renewal of expired exclusions to ensure continued relief for previously exempted products helps maintain competitive market conditions. Participate in public comment periods and provide detailed economic impact analyses to support your cases.

Bond Sufficiency

Maintaining adequate Customs bonds is essential to avoid delays in clearance.
How to calculate bond amounts:

• US: Based on anticipated import duties, taxes, and fees over a 12-month period.
• Canada: Based on 50% of your highest monthly outlay of duty, taxes and fees in the past 12-month period. Required amount of coverage can be found in your CARM portal.
• Regularly review and adjust your bond amounts to ensure they remain sufficient as trade volumes and duty rates change.
• Steps required to secure new import bonds if necessary
  • Work with surety companies to obtain bonds that meet U.S. & Canada Customs requirements
  • Submit the necessary documentation and ensure that bond amounts are updated in a timely manner to prevent supply chain disruptions.

Other Common Strategies

If you have been considering any of the following traditional duty saving tools, this may be a good time to evaluate if they fit your needs.

• First Sale Method – Triangle trade valuation basis using the earliest price paid on imported merchandise.
• Vessel Level Clearances – Save on Merchandise Processing Fees by combining multiple bills of lading on a single entry.
• High Level Risk Assessment - A holistic view of the supply chain and where risk can be identified and mitigated. Review past imports for potential duty overpayments and claim refunds where applicable.
• US Drawback – Recover 99% of eligible duties and fees. *Please note, additional duties from this round of tariffs are not subject to drawback recovery.
• Canada Duty Relief & Drawback Programs
• Duties Relief Program: Import goods without paying duties or surtaxes if they will be re-exported or used in manufacturing for export.
• Duty Drawback Program: Allows businesses to recover 100% of duties and surtaxes paid on imported goods that are later exported, either as-is or after processing.

We are here to support you with your logistics needs and will continue to provide customer advisories and updates as the situation develops.

Global tariffs impacting supply chains

Over the last period of time, there has been a significant uptake in changes to tariffs and legislation on a global plane. As your logistics partner, we endeavor to keep you informed of changes and how they may impact on your supply chain.

On February 1, 2025, the United States government announced the implementation of tariffs on all Canada-origin, Mexico-origin and China-origin goods entering the United States. These tariffs are being applied under the International Emergency Economic Powers Act (IEEPA).

The 10% tariff on all China-origin goods entering the U.S. took effect on February 4. Canada and Mexico imports tariff will be delayed one month. Currently, there is no expiry or revisitation date on the tariffs and no opportunity for tariff exemption. A fact sheet from the U.S. government can be found here.

We recognize that these changes may create uncertainty in supply chains, and we're dedicated to assisting you in managing these challenges. We offer Impact Analysis to assess how these potential tariffs could affect your business, as well as Trade Advisory Services under our Customs House Brokerage product that provide strategic sourcing and contingency planning advice.

Today, we’d like to provide clarity on frequently asked questions about the new import tariffs and outline the solutions available to you:

Lead Logistics

Maersk's Lead Logistics products offer robust support to our customers through our carrier-neutral 3PL service, enabling collaboration with shippers and vendors across the globe. Additionally, we provide a compliant Duty Deduction program that leverages a landmark binding ruling to reduce U.S. import duties by recognizing 29 allowable charges for deduction. This program is integrated with our Customs House Brokerage services, ensuring efficient and effective duty management.

Air Freight

Maersk Air Freight utilizes our own controlled freighter network and global strategic partners to deliver quick and efficient transportation of goods across the globe. We ensure safe and reliable service through a network of hubs and gateways, including operations throughout China and North America. We also provide CFS warehouse solutions at our hubs, allowing for the handling of import cargo pending Customs clearance.

Less than Container Load (LCL)

Our LCL services address your small shipments to and from any global location, adapting to your changing sourcing needs. Our services include consolidation and deconsolidation, allowing you to group smaller shipments and reduce transaction costs. You can also access instant online quotes and benefit from door-to-door services, simplifying your international shipping experience.

Intermodal

We are ready and available to support you in flexing up capacity through our drayage asset network or flex down capacity by providing storage solutions through depot services, both of which include national coverage.

Warehousing

We partner with our customs colleagues to assess various network options, ensuring the optimal supply chain solution for your business considering the recent announcements regarding 321 (De Minimis), potential tariffs, and the general need for added flexibility. We manage the flow of products to your inland and final destinations through our transload centers located in key import gateways, including Redlands, Houston, Vancouver, Seattle, Burlington, Savannah, and Chesapeake. We can also quickly activate short- and long-term warehouse solutions in our existing facilities in Redlands, Seattle, Savannah, and Burlington to help you transition fulfillment of orders back to the U.S. and reduce tariff impact.

Ground freight

Maersk Freight Brokerage collaborates with 58 bonded FTL dry van and reefer carriers to meet your cross-border transportation needs to and from Canada and Mexico. We also partner with four bonded standard LTL carriers for Canada and Mexico cross-border shipments. This enables us to provide the right coverage and capacity for your FTL and LTL transportation requirements.

E-Commerce Parcel Delivery

Maersk Parcel Delivery ensures seamless national coverage by leveraging a dynamic network of national and regional carriers. Our advanced technology selects the best available carrier and routing options, adapting in real time to maintain uninterrupted service—even in the face of market disruptions or carrier issues. With built-in flexibility, our solution continuously optimizes the delivery network to ensure the fastest and most reliable path for every parcel. It also quickly adjusts to evolving tax and trade policies keeping deliveries efficient.

For international inbound shipments, we facilitate smooth transitions from major airport gateways and brokers—such as JFK, ORD, and LAX—seamlessly integrating into our North American delivery network for timely, final-mile delivery.

For any questions or assistance, please reach out to your Maersk representative.