Tariffs, Trade Policy, and Compliance: August’s Critical Developments in Global Trade
NEWSLETTER | Trade Insight AI
Census Bureau Overhauls In-Transit Shipment Filing Rules Effective September 15
STR Trade Report • August 15, 2025
The U.S. Census Bureau has finalized major revisions to Foreign Trade Regulations for in-transit shipments, effective September 15. Key changes include expanded definitions of the U.S. Principal Party in Interest (USPPI), new requirements for entry numbers and data elements, and tighter guidelines on electronic export information (EEI) filer eligibility and responsibilities. The rule also updates 19 export-related definitions and clarifies procedures to enhance compliance and accuracy in export filings, significantly impacting brokers, warehouse operators, and trade professionals dealing with in-transit movements.
Tariffs & Trade Policy: Shifting Landscapes and Forthcoming Reforms
Major Overhaul of U.S. Tariff Schedule Set for 2028 as ITC Begins Review
STR Trade Report •August 15, 2025
The U.S. International Trade Commission has launched an investigation to update the Harmonized Tariff Schedule (HTSUS) in alignment with global Harmonized System amendments, with changes slated to take effect January 1, 2028. The ITC will seek public input after the World Customs Organization publishes its recommended nomenclature changes in January 2026, aiming to ensure duty rate neutrality before submitting final recommendations to the president. This process signals significant upcoming changes for importers, exporters, and compliance professionals handling U.S. customs classifications.
USITC Launches Review to Align U.S. Tariff Schedule with New Global Standards
USITC News Releases •August 12, 2025
The U.S. International Trade Commission has initiated a formal investigation to update the Harmonized Tariff Schedule (HTS), aiming to align it with the latest amendments to the World Customs Organization’s Harmonized System. Draft proposed changes will be released for public comment in February 2026, with final recommendations due to the President in September 2026. This process will ensure U.S. tariff classifications remain consistent with global trade practices, impacting importers, exporters, and compliance professionals.
Brazil Challenges US Tariffs at WTO, Citing GATT and DSU Violations
WTO Latest News •August 11, 2025
Brazil has formally requested WTO consultations over US-imposed tariffs—10% on all Brazilian goods and an additional 40% on certain products—alleging these measures violate US commitments under GATT 1994 and the Dispute Settlement Understanding. This marks the start of a formal dispute process, potentially escalating to a WTO panel if no settlement is reached within 60 days. The case highlights rising trade tensions and could impact bilateral trade relations between Brazil and the US.
U.S. Delays Tariff Hike on Chinese Imports, Extends Lower Rates for 90 Days
STR Trade Report •August 13, 2025
President Trump has postponed a planned tariff increase on Chinese imports for another 90 days, extending the current 10 percent reciprocal tariffs until November 10, 2025. This move follows similar actions by China and is intended to support ongoing negotiations to address trade imbalances and market access concerns. Importers should note that other tariffs, including IEEPA and Section 301 duties, remain in effect on many Chinese goods.
WTO: US Import Frontloading Softens 2025 Tariff Blow, But 2026 Trade Risks Mount
WTO Latest News •August 8, 2025
The WTO has revised its 2025 global merchandise trade growth forecast upward to 0.9%, citing a surge in US frontloading ahead of new tariffs and improved global economic conditions. However, heightened tariffs now in effect are set to slow trade further in late 2025 and into 2026, with significant downside risks, especially as inventory corrections and persistent tariff uncertainty threaten business confidence and supply chains. Asian economies will remain a key growth driver, but risk factors—including falling oil prices and regionally uneven impacts—warrant close monitoring for trade professionals.
Enforcement & Customs Compliance: Crackdowns and New Requirements
ACE Rolled Out to Block De Minimis Shipments Exceeding $800 Daily Limit
STR Trade Report •August 14, 2025
As of August 12, U.S. Customs and Border Protection has enhanced the Automated Commercial Environment (ACE) to automatically withhold release of de minimis shipments exceeding the $800 per person per day threshold. This automation triggers an immediate hold and notice, requiring shippers to file standard entries or abandon, export, or return affected goods. This move precedes a broader ban on commercial de minimis entries from all countries, effective August 29 under a new executive order.
CBP Proposes New Tariff Classifications for Auto Suspension Parts
STR Trade Report •August 15, 2025
U.S. Customs and Border Protection has proposed reclassifying metal and rubber automotive air springs and suspension bushings under auto and trailer part tariff codes, potentially increasing applicable duties from duty-free to up to 3.1%. Several previous classification rulings would be revoked or modified, impacting importers' compliance strategies. Comments on the proposed changes are due by September 13, signaling a key window for stakeholder input.
U.S. Trade Deficit Narrows Amid Surging Imports from Vietnam and Taiwan, Raising Transshipment Concerns
STR Trade Report •August 14, 2025
The U.S. trade deficit shrank by 15.8% in June, with imports from China dropping to a 16-year low while imports from Vietnam and Taiwan reached record highs. These shifts suggest either a migration of production or increased transshipment of Chinese goods through third countries, an issue the U.S. has pledged to address. Such trade flows underscore growing enforcement scrutiny as the U.S. seeks to curb circumvention of tariffs and origin rules.
Recent AD/CVD Developments: New Investigations and Preliminary Rulings Impact Key Commodities
STR Trade Report •August 14, 2025
U.S. trade authorities have announced multiple developments in antidumping and countervailing duty cases impacting aluminum sheet, dissolving pulp, hot-rolled steel, and paprika. Notably, reviews found a zero dumping margin for South African aluminum sheet, initiated dumping and subsidy investigations on dissolving pulp from Brazil and Norway, and imposed modest subsidy rates on Korean hot-rolled steel. Preliminary AD/CVD injury determinations were also issued for Indian paprika, signaling increased scrutiny in several sectors.
USITC Upholds Antidumping Duties on Chinese Small Diameter Graphite Electrodes After Sunset Review
USITC News Releases •August 14, 2025
The US International Trade Commission has decided to maintain existing antidumping duties on imports of small diameter graphite electrodes from China, citing likely recurrence of material injury to the domestic industry if the order were lifted. This outcome follows an expedited five-year (sunset) review, with commissioners unanimously affirming the need to keep protection in place. The decision will continue to shield US manufacturers from unfairly priced Chinese imports, impacting procurement and sourcing strategies across related sectors.
Market Access & Global Trade Opportunities
WTO Selects First Nigerian Women Entrepreneurs for $50M Digital Export Fund
WTO Latest News •August 14, 2025
The WTO and ITC have announced 146 Nigerian women-led MSMEs as the inaugural recipients of the WEIDE Fund, chosen from over 67,000 applicants. These entrepreneurs will receive year-long, targeted support to improve digital capabilities, financial readiness, and export competitiveness, addressing persistent barriers to global market access. Upcoming selections in the Dominican Republic and Mongolia signal the Fund’s expanding impact in empowering women exporters.
U.S. Textile and Apparel Imports Surge in June; China Leads Recovery
STR Trade Report •August 15, 2025
U.S. imports of textiles and apparel jumped 6.9% from May to June 2025, totaling 8.57 billion square meter equivalents, with shipments from China surging 26.3% month-on-month. The annual data also show notable growth from India, Saudi Arabia, and Vietnam, reflecting shifting sourcing trends. This increase signals strong sector demand and heightened competition among key supplier countries.
USTR Seeks Public Input on Russia’s WTO Trade Obligations Ahead of Congressional Review
STR Trade Report •August 15, 2025
The U.S. Trade Representative has opened a call for public comments as it assesses Russia’s adherence to its WTO commitments, covering crucial issues such as tariffs, subsidies, market access, and intellectual property rights. Stakeholders can submit written comments or sign up to testify by October 1, with a public hearing scheduled for October 15. This process will inform the USTR’s annual report to Congress and may impact future U.S.-Russia trade relations.
Trade Facilitation & Supply Chain: Public-Private Innovation
CBP Expands Reimbursable Services Program with 33 New Public-Private Partnerships Across U.S.
CBP Media Releases •August 13, 2025
U.S. Customs and Border Protection (CBP) has announced 33 new tentative agreements under its Reimbursable Services Program, allowing private and public partners to fund expanded inspection and support services at ports of entry nationwide. This initiative aims to boost cross-border trade, expedite traveler processing, and extend CBP's capabilities at airports, seaports, and land crossings without replacing existing services. The partnerships reflect a significant resource optimization effort, supporting over 1.65 million additional processing hours since the program’s inception and responding to growing commercial and traveler demand.
U.S. and South Korea Expand Remote Baggage Screening to Streamline Atlanta Airport Security
CBP Media Releases •August 13, 2025
U.S. Customs and Border Protection and South Korean authorities have expanded their International Remote Baggage Screening (IRBS) program, now covering Atlanta-bound flights from Incheon. This initiative remotely screens checked luggage during flight, adding a security layer and reducing processing time for arriving passengers. The program exemplifies international aviation collaboration and supports CBP’s push for airport modernization and enhanced traveler experience.
Technology and Trade Agreements: Global Implications
Chip Export Controls Spark Legal Debate; Gold Bars Exempted from Tariffs; Indonesia and Peru Finalize FTA
STR Trade Report •August 13, 2025
A new chip export deal is raising legal concerns as it shifts the U.S. government's traditional export control function towards revenue generation, an unprecedented move according to experts. Meanwhile, President Trump clarified that gold bars will not face the recently announced 39% tariffs, impacting the global precious metals trade. In a separate development, Indonesia and Peru have signed a free trade agreement expected to boost trade flows in autos, biodiesel, footwear, and agricultural products.
