Canada Tariff Deadline: Talks Have Stalled — Consider Moving Up Shipments
With the August 19 deadline for the 50% tariff on Canadian alcohol, dairy, and autos getting closer, there’s no real progress to report and talks this week produced no significant developments, but negotiators remain focused on reaching a deal. Sen. Collins (R-ME) has requested further review, clarity, and more notice for businesses, noting the expected negative impact of 50% tariffs. Canada has stated it is prepared to retaliate should the new tariffs be implemented. Some companies are already pulling shipments forward to beat the deadline. If you have Canadian orders scheduled for late August, it’s worth asking your supplier whether they can ship earlier. Please note that the 50% tariff as proposed has no exemption for USMCA eligible product! We will continue to monitor closely.
Section 301 Tariff Challenges
A coalition of 25 states, led by California, filed suit August 3 in the U.S. Court of International Trade challenging the new Section 301 forced-labor tariffs on 60 trading partners. The plaintiff’s argument is that the forced-labor rationale is not legal due to both the rushed decision without enough time to thoroughly investigate 60 economies and that it is just a means to bypass the earlier Supreme Court ruling on the IEEPA tariffs. The Liberty Justice Center is also challenging the tariffs for multiple plaintiffs, with similar arguments. The US CIT (Court of International Trade) will hear the challenges to the latest tariffs. Nothing changes for importers at this time, but we will continue to monitor the challenges to both the Section 122 and Section 301 tariffs, and the Court’s responses. Should you have any question on the current Section 301 amounts or exemptions, please let us know.
IEEPA Tariff Updates
Phase 1 and Phase 2 refunds have continued, and many importers have received the full amounts due. Other importers are still facing delays in payments due to a variety of issues, from problems with entries subject to multiple tariffs, such as Section 232, or issues with ACH refund set up. For the “finally liquidated” entries (those that are 80 days past the liquidation date), the importers who filed lawsuits are scheduled to receive payouts. Other importers who have these types of entries are awaiting further information, including the results of the class action certification hearing held on August 6. We are still hoping that Judge Eaton of the CIT will rule that all of these entries should be re-liquidated and claims paid through the CAPE portal without the necessity of legal action. We should have more news on this next week and will update further.
Chile/Argentina Border Still Closed – More Delays Expected
The Mendoza–Los Libertadores crossing between Argentina and Chile remains closed despite weather conditions being slightly better than expected this week. Road crews continue clearing snow, but another snowfall is forecast for Sunday, which could delay reopening efforts further. While there had been hopes of reopening one lane sometime next week, officials say it’s still too early to confirm a timeline and expect to provide a more reliable update early next week. Chilean ports remain fully operational and Argentinian cargo can be re-routed if needed. While the Chilean ports are open, there is congestion due to vessel schedule delays and Panama Canal restrictions, thus, be prepared for some disruption in normal flows from San Antonio and Valparaiso ports. Should you need more information on options for Argentina cargo, please reach out to us.
Typhoons Causing Delays Across Asia
Multiple typhoons are disrupting port operations across Asia, and vessel schedules are being impacted, with knock-on congestion expected in both Asia and Europe. Additional delays should be expected over the coming weeks as schedules recover. If you have cargo moving through Asia or connecting via European transshipment hubs, monitor vessel schedules closely and plan for potential transit time changes.
Rhine Water Levels Hit a Record Low
The Kaub gauge on the Rhine dropped to its lowest level on record this week, and low-water surcharges continue to be in effect. Barge service remains extremely restricted, thus creating congestion for both truck and rail traffic. Plan ahead for pickups throughout Germany and the hinterland.
Peak Season Fees on North Europe Routes
Most carriers have announced peak season surcharges on North Europe–to–U.S. routes due to vessels running at capacity or being overbooked. Schedule integrity continues to be an issue with vessels running at less than 60% on time and port omissions creating backlogs in some areas. All steamship lines are reporting full ships for the next 3-6 weeks, with cargo volumes higher than expected, thus the push for an uptick in charges. The Mediterranean is less congested, and we are not seeing any surcharges at this time.
Strait of Hormuz & Red Sea Violence
The Strait of Hormuz remains closed with mixed messages from Iran and the USA as to the next steps toward ending the conflict and opening the waterway. Oil prices continue to fluctuate, rising when Iran posted news on plans for restrictive conditions for ships traveling through the Strait, after falling when US Treasury Secretary Scott Bessent provided information on a deal to open the Strait. The roller coaster appears to be continuing with no clear end in sight. Houthi rebels continue to attack ships in the Red Sea, another conflict with no clear end, and containers ships continue to be routed around the tip of Africa.
LCL Services from France, Italy, and Spain/Portugal – SUMMER UPDATE
Bi-monthly departures continue from each of these countries for your small shipments, offering a per case rate from point of pick up to the Alba Wine and Spirits warehouse in Edison, New Jersey. For the summer months, all containers will be temperature controlled, ensuring your cargo is protected from summer heat. Shipments from other European countries can be added into the mix, with pick-ups offered in most European countries. Please let us know if you need any further information!