IEEPA Refunds Face CIT Pressure, USMCA Review Talks Begin
NEWSLETTER | Trade Insight AI
CIT Weighs Lifting Stay as IEEPA Refund Delays Mount
STR Trade Report • May 29, 2026
After the Supreme Court voided IEEPA tariffs, the CIT ordered CBP to refund them, but Judge Eaton now demands CBP show cause by June 4 and set a June 9 hearing, citing no plan for millions of finally liquidated informal entries and signaling he may lift his stay on immediate compliance. CBP says about $85 billion in claims are in CAPE and $20.6 billion certified to Treasury, yet many payouts are stalled by file/entry validation errors, ineligible or duplicate entries, and missing ACH details from importers or their 4811 designees. A possible DOJ appeal by June 6 could affect timelines; importers should validate CAPE files, ensure ACH is on file, and monitor liquidation dates to file timely protests.
Policy & Agreements: USMCA Review, EU–Mexico Update, Global Disciplines
U.S. and Mexico Launch Bilateral Talks Ahead of First USMCA Review
USTR Press Releases •May 27, 2026
The United States and Mexico announced a series of bilateral negotiating rounds to prepare for the first USMCA joint review in 2026. These talks will shape each country’s positions for the upcoming trilateral process and could influence the agreement’s 16‑year continuation decision and any targeted updates—making early stakeholder engagement critical, particularly for autos, energy, labor, and agriculture.
USMCA Tariffs Hold; EU–Mexico Deal Advances; China Tightens Chemical Exports
STR Trade Report •May 29, 2026
The U.S. will keep certain tariffs affecting USMCA partners, with officials suggesting higher external tariffs could support deeper North American preference schemes. Trade policy is shifting from broad tariffs to targeted tools like export controls and licensing tied to security and technology, while the EU and Mexico updated their agreement to cut more tariffs—especially on agriculture—and ease investment. China added three precursor chemicals to its export-control catalogue for shipments to the U.S., Canada, and Mexico (now 16 substances total), requiring permits and triggering new compliance checks for chemical supply chains.
New Zealand opens safeguard probe into aluminium extrusions imports
WTO Latest News •May 27, 2026
New Zealand has initiated a WTO-notified safeguard investigation into imports of certain aluminium extrusions, formally opening the probe on 28 May 2026. MBIE will issue questionnaires and invites domestic and international stakeholders to submit information sheets to register as interested parties via its trade remedies portal. If increased imports are found to cause or threaten serious injury, New Zealand could impose temporary import restrictions, affecting market access and pricing.
WTO presses universal adoption, tighter fisheries subsidy rules by 2029
WTO Latest News •May 26, 2026
At the Monaco Blue Initiative, WTO DDG Jennifer Nordquist urged members to complete acceptance and implementation of the Fisheries Subsidies Agreement—now at 120 acceptances with 46 still outstanding—and to accelerate “Fish 2” negotiations to curb subsidies that drive overcapacity and overfishing by the September 2029 deadline. She highlighted the operational Fisheries Subsidies Committee and the donor-backed Fish Fund (26 grants approved) aiding developing members, warning that delays prolong roughly $22 billion in harmful subsidies and could jeopardize the first-phase rules. Trade professionals should anticipate tighter subsidy constraints, heightened reporting and transparency, and competitive shifts across seafood supply chains as disciplines expand.
WTO Opens 2026 Review of Japan’s Trade Regime
WTO Latest News •May 26, 2026
Japan’s 16th WTO Trade Policy Review will be held on 27 and 29 May 2026, drawing on an independent Secretariat report and a government policy statement. The TPRB discussion offers an up-to-date snapshot of Japan’s trade measures and a venue for members to flag market access concerns; businesses should watch the chair’s day‑two concluding remarks for signals on priority issues and compliance expectations.
Trade Remedies & Tariff Actions
U.S. AD/CVD: Chassis Injuries Affirmed; Vietnam Boxes, Pipe Face Steep Rates
STR Trade Report •May 29, 2026
U.S. trade authorities issued several AD/CVD actions affecting chassis, packaging, mushrooms, and steel products. The ITC finalized affirmative injury findings on chassis and subassemblies from Mexico, Thailand, and Vietnam (AD) and from Mexico and Thailand (CVD), while Commerce set final rates including 130.58% on polypropylene corrugated boxes from Vietnam—paired with an affirmative critical‑circumstances finding that raises retroactive‑liability risk—and 90.8% on welded stainless steel pressure pipe from Vietnam. Commerce also finalized a 2.55% rate on preserved mushrooms from Poland for Nov. 3, 2022–Apr. 30, 2024, and a sunset review determination will keep AD orders on pre‑stressed concrete steel wire strand from Brazil, India, Japan, Mexico, South Korea, and Thailand, plus CVD on India, in place.
AD/CVD Update: Tris Probed, OCTG Advances, Rebar Algeria Dropped
STR Trade Report •May 28, 2026
U.S. trade authorities launched AD/CVD investigations into tris(hydroxymethyl)aminomethane from China (scope comments due June 1) and issued preliminary affirmative injury determinations for oil country tubular goods from Austria, Taiwan, and the UAE (AD) and from Austria (CVD), allowing those cases to proceed. In a sunset review of Chinese crepe paper, Commerce found that revoking the order would likely lead to continued or recurring dumping at margins up to 266.83%, supporting continuation of the measure. The ITC closed the CVD injury probe on Algerian rebar after USTR deemed Algeria not a Subsidies Agreement country, and Commerce rescinded the administrative review of Chinese freight rail couplers, directing CBP to assess duties at current cash deposit rates.
CBP Proposes Reclassifications: Protein Powders, Shower Doors, Bed Frames, Foot Warmers
STR Trade Report •May 29, 2026
CBP’s May 20, 2026 Customs Bulletin proposes revising several classification rulings, with comments due June 19. Changes would shift flavored protein powders to HTSUS 2106.90.99 (still 6.4%); glass shower doors to safety glass 7007.19.00 (duty down to 5% from 12.5%); upholstered bed frames to 9403.89.60 (remains duty-free); and electric foot warmers to 6307.90.98 (duty up to 7% from 2.7%). Grounded in essential-character and principal-use analyses, these moves could alter landed costs and compliance positioning—importers should model impacts and consider submitting comments.
ITC launches review of Section 201 quota on fine denier PSF
STR Trade Report •May 28, 2026
The U.S. International Trade Commission opened an investigation to assess domestic industry developments since the November 2024 Section 201 safeguard on fine denier polyester staple fiber (under 3.3 dtex), which imposed a quota on TIB entries under HTSUS 5503.20.00/5503.20.0025 or 9813.00.0520—set at zero in year one and rising by one million pounds annually for three years. The measure covers PSF not carded or combed and excludes qualifying imports from Canada, Mexico, Australia, Colombia, Israel, Jordan, Panama, Peru, Singapore, CAFTA-DR members, and GSP/CBERA beneficiaries. A public hearing is slated for Oct. 1 (pre-hearing briefs due Sept. 24; requests to appear Sept. 25; conference Sept. 28; post-hearing briefs Oct. 8), with the ITC’s report to the president and Congress due Nov. 23—offering producers and downstream users (yarn, apparel, nonwovens, furnishings) a window to influence potential policy adjustments.
Enforcement & Compliance Spotlight
CBP Crackdown: Winning Strategies for CF28s, CF29s, and Penalties
STR Trade Report •May 28, 2026
CBP is intensifying trade enforcement with tougher standards, quicker and larger penalties, and expanded use of CF28 information requests and CF29 Notices of Action—especially around 19 U.S.C. §1592, tariff-mitigation tactics, and AD/CVD evasion. Because DOJ reviews CF28/CF29, protest, and penalty responses, importers should treat every submission as litigation-ready: complete, accurate, consistent, and supported by admissible evidence, with early risk analysis, evidence preservation, and witness preparation. Strong, well-documented responses can end inquiries or lower culpability and damages, while inconsistencies or omissions may themselves trigger violations.
FDA expands DWPE import alerts for foods, cosmetics, devices, lasers
STR Trade Report •May 28, 2026
The FDA issued or modified multiple import alerts this week covering a wide range of products—including animal drugs; cosmetics; laser products; medical instruments/devices; and foods such as canned fish, cheese, spices, rice, shrimp, and sauces—from suppliers in China, India, Indonesia, Italy, Mexico, Portugal, South Africa, Sweden, the UAE, the UK, and others. Listed items may be detained without physical examination (DWPE), with red/yellow/green list status determining treatment; importers must provide strong evidence of compliance to secure release or risk refusal. The alerts create immediate clearance and compliance risks for importers sourcing from the named categories and markets.
DEA Seeks Schedule I Status for Diphenidine, Tightening Import/Export Controls
STR Trade Report •May 29, 2026
DEA is seeking public comments by June 25 on a proposed rule to place the dissociative hallucinogen diphenidine—and its salts and isomers—into Schedule I of the Controlled Substances Act. If finalized, the listing would subject importers, exporters, manufacturers, distributors, researchers, and other handlers to Schedule I controls and related civil and criminal sanctions, requiring compliance adjustments for any legitimate trade or research involving this substance.
Border Operations & Supply Chain
Global chokepoints squeeze capacity, raise costs; WTO pushes Trade Facilitation Agreement rollout
WTO Latest News •May 27, 2026
Senior leaders from MSC, CMA CGM, COSCO, Hapag-Lloyd, ONE, Evergreen, Yang Ming and industry groups told WTO DG Ngozi Okonjo‑Iweala on 28 May that rerouting around Gulf and other chokepoints is inflating costs and straining capacity, with some land routes and ports already saturated. They flagged customs delays along alternative multimodal corridors and urged investment in port and logistics infrastructure, noting the scale gap—about 70 freight trains to match one container ship. The DG called for full implementation of the WTO Trade Facilitation Agreement, accelerated customs digitalization and information‑sharing, restraint in trade restrictions, and respect for freedom of navigation to stabilize supply chains.
CBP Laredo warns of screwworm; USDA scales up sterile flies
CBP Media Releases •May 28, 2026
CBP’s Laredo Field Office launched a bilingual awareness campaign across eight South Texas ports to help keep New World Screwworm out of the U.S., as detections have appeared within 55 miles of the border. USDA has ramped sterile-fly production to about 500 million per week, and U.S. imports of live cattle from Mexico have been suspended since May 2025. Heightened biosecurity measures may affect livestock movements and cross‑border operations; traders should watch CBP/APHIS guidance and report suspected cases promptly.
FTZ Board Logs New Production Requests, Approves Texas Subzone 68C
STR Trade Report •May 28, 2026
The FTZ Board received proposed production activity notices for Essai (semiconductor test equipment) in FTZ 75 in Chandler, AZ; Shiseido America (cosmetics) in FTZ 200 in East Windsor/Cranbury, NJ and FTZ 138 in Groveport, OH; JAE Oregon (automotive electrical connectors) in FTZ 45 in Tualatin, OR; and Twin Disc (marine/off‑highway power transmissions) in FTZ 297 in Lufkin, TX. It also approved establishment of subzone 68C at PMI Services North America in El Paso, Texas. If approved and activated, these FTZ authorities can enable duty deferral and inverted‑tariff benefits, lowering import costs and improving supply chain flexibility.
CBP Reopens Poker Creek Port with Summer Hours, May–September 2026
CBP Media Releases •May 22, 2026
U.S. Customs and Border Protection will reopen the seasonal Poker Creek Port of Entry on May 22, 2026, operating daily 8 a.m.–6 p.m. Alaska Time (9 a.m.–7 p.m. Yukon) and targeting closure around September 15, weather permitting. Cross-border carriers and tour operators should plan for potential short-notice adjustments, pre-file I‑94s via CBP One or online (or bring $30 exact cash), ensure ESTA authorization for Visa Waiver travelers, and avoid transporting Canadian-sourced firewood. The limited operating window will shape seasonal logistics on the Alaska–Yukon corridor, so align routings and staffing accordingly.
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