Trade and Tariffs Update: April 21, 2025

Recent tariff measures now require supply chains to maintain a higher level of data granularity, including detailed information on inputs and production. Importers must be prepared to document and support value content declarations with a level of specificity that may not have been previously required.

We encourage members to consult with their customs broker or trade counsel for further guidance and to ensure compliance with all applicable tariff programs.

Lawsuits Challenging the Trump Administration’s Tariff Authority

Four lawsuits have been filed in federal courts across the country challenging the legality of the Trump administration’s use of the International Emergency Economic Powers Act (IEEPA) to impose recent tariffs, including the April 2 reciprocal tariffs and the IEEPA-fentanyl tariffs on Canada, Mexico and China.

Virginia Small Businesses (V.O.S. Selections): The Liberty Justice Center filed a lawsuit at the U.S. Court of International Trade on behalf of five Virginia small businesses challenging the April 2 reciprocal tariffs. The complaint argues that IEEPA does not authorize across-the-board tariffs and that the administration’s justification fails to meet the legal threshold of an “unusual and extraordinary threat.”

California (State of California and Governor Newsom): The State of California filed a lawsuit in the U.S. District Court for the Northern District of California challenging tariffs imposed under IEEPA on Canada, Mexico, and China, as well as the April 2 reciprocal tariffs. The complaint argues the actions violate the separation of powers and that IEEPA does not permit the president to impose tariffs without congressional approval.

Montana (Blackfeet Nation Members): Two members of the Blackfeet Nation filed a lawsuit in the U.S. District Court for the District of Montana alleging that President Trump’s IEEPA-based tariffs are an unconstitutional delegation of legislative authority. They also claim violations of procedural due process and assert the tariff orders are impermissibly vague.

Florida (Emily Ley Paper dba Simplified): The New Civil Liberties Alliance filed a lawsuit in the U.S. District Court for the Northern District of Florida on behalf of a Florida-based stationery importer, Simplified. The suit seeks to block enforcement of the IEEPA tariffs on China, arguing they are unlawful, unconstitutional, and improperly amended the Harmonized Tariff Schedule.

USTR Finalizes Port Fees on Chinese-operated and Chinese-built Ships

On April 17, 2025, the Office of the United States Trade Representative (USTR) announced final actions under the Section 301 investigation targeting China’s maritime logistics and shipbuilding sectors. The measures, which reflect significant changes from the initial proposal released in March, introduce a phased and more narrowly tailored fee structure on Chinese-built vessels and operators.

USTR made significant changes from the initial proposed actions in response to public comments and industry concerns. Fees will now apply per U.S. voyage, not per port call, and are capped at a maximum of five times per vessel each year. The fee structure has shifted from a flat rate to one based on vessel net tonnage or container volume, with gradual phase-in.

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China Warns Against Trade Deals as U.S. Negotiations Advance

Several countries have begun engaging in bilateral discussions with the United States following the temporary 90-day suspension of country-specific reciprocal tariffs announced on April 2. Nations such as Japan and India have reportedly initiated talks to address trade imbalances and explore opportunities for tariff relief during the pause period.

On April 21, China’s Ministry of Commerce issued a statement cautioning governments not to enter into trade agreements that undermine China’s economic interests. The Ministry of Commerce stated that any such agreements would prompt reciprocal countermeasures, emphasizing China's commitment to safeguarding its rights and interests.

New Section 232 Investigations Initiated

On April 15, President Donald Trump directed the Department of Commerce to initiate investigations under Section 232 of the Trade Expansion Act into imports of semiconductors, critical minerals, and their derivatives. These investigations aim to assess whether these imports pose a threat to national security, potentially leading to new tariffs or trade restrictions.

Semiconductors Federal Register Notice

Critical Minerals Executive Order

Clarification on Tariffs Imposed on Chinese Imports

In a recent fact sheet shared by the Trump administration on the White House’s website, it was stated that “China faces up to a 245% tariff on imports to the United States as a result of its retaliatory actions.”

This is to clarify that there are no new tariffs beyond the existing IEEPA-fentanyl tariffs at 20% and the China reciprocal tariffs at 125%. The 245% total does not reflect new actions; it reflects the cumulative maximum charges already in place, including a 100% tariff on Chinese syringes.

CBP Further Clarifies Products on Auto Parts List are not Subject to Reciprocal Tariffs

We previously shared that U.S. Customs and Border Protection (CBP) updated their FAQ page to confirm that products on the auto parts list are not subject to the reciprocal tariffs. CBP has since updated its guidance to further clarify that, even though the 25% auto parts Section 232 tariffs do not take effect until May 3, 2025, those products are and have been exempt from the reciprocal tariffs since April 5, 2025, under HTS heading 9903.01.33.

If you previously paid reciprocal tariffs on auto parts subject to the Section 232 tariffs, please consult your customs broker about submitting a Post Summary Correction (PSC).