Tariff Reset: Korea’s 15% Reciprocal Duty, UK Pharma Exemptions, Quartz Safeguard Risks
NEWSLETTER | Trade Insight AI
U.S. sets 15% reciprocal tariff on Korean imports, revises Section 232
STR Trade Report • December 4, 2025
The U.S. amended the HTSUS to implement parts of a bilateral pact with South Korea, applying to originating Korean goods the higher of the KORUS or MFN rate or a new 15% reciprocal tariff. Section 232 tariffs on South Korean autos, auto parts, timber, lumber, and wood derivatives are standardized at 15% (no extra 232 duty if KORUS/MFN is at least 15%), while reciprocal tariffs are removed for certain aircraft and parts. Changes are retroactive: autos/auto parts to entries on or after Nov. 1, 2025, and all other changes on or after Nov. 14, 2025—prompting importers to reassess recent entries for duty impacts.
Market-Moving Tariff Actions
U.S.–U.K. agree 25% U.K. drug price rise, tariff exemptions
USTR Press Releases •December 1, 2025
The United States and United Kingdom reached an agreement-in-principle under the Economic Prosperity Deal to rebalance pharmaceutical pricing, with the UK committing to raise the net price it pays for new medicines by 25% and reverse a decade of declining NHS spend on innovative drugs. The UK will reduce the VPAG repayment rate to 15% in 2026 and keep it at or below that level, while the U.S. will exempt U.K.-origin pharmaceuticals, ingredients, and medical technology from Section 232 tariffs and refrain from Section 301 actions on U.K. pricing during the current term. The deal signals improved market access and pricing certainty in the UK alongside immediate tariff relief and policy clarity for cross-border life sciences supply chains.
WTO: Tariff coverage quadruples to $2.6T as facilitation rises
WTO Latest News •December 1, 2025
The WTO’s latest monitoring report finds that new tariffs and related import/export measures between mid‑October 2024 and mid‑October 2025 affected $2.97 trillion in trade, including $2.64 trillion of goods imports (11.1% of global imports)—more than quadruple the prior period. While members also adopted 331 trade‑facilitating measures covering $2.09 trillion, protectionism remains entrenched: 19.7% of world imports are now covered by post‑2009 measures, trade‑remedy initiations averaged 32.3/month with just 11.4 terminations, and remedies comprised 46.5% of recorded goods measures. WTO economists project merchandise trade growth of 2.4% in 2025 and 0.5% in 2026, with 2025 buoyed by import front‑loading and AI‑related demand—implying rising cost and compliance pressures alongside selective openings that will shape sourcing and market‑access strategies.
Quartz Surfaces Face Section 201 Review; 50% Tariff Sought
STR Trade Report •December 5, 2025
The U.S. International Trade Commission has opened a Section 201 safeguard investigation into quartz surface products—slabs and fabricated surfaces with predominantly silica—covered by HTSUS 6810.99.0020, 6810.99.0040, and 7020.00.6000, including items finished in third countries or imported with non-subject fixtures. Parties must enter appearances by Dec. 22; the injury hearing is set for Feb. 24, 2026, with an injury decision due by April 1 and a remedy hearing on April 14 before a report to the president by May 18. If injury is found, the ITC could recommend country-specific quotas and steep tariffs—petitioners seek up to a 50% duty or weight-based specific tariffs—though the president will determine the final relief, initially up to four years (extendable to eight).
Costco Seeks Tariff Refunds; Canada 25% Steel-Derivatives Tariff; EU Tightens Preferences
STR Trade Report •December 4, 2025
Costco sued the Trump administration to secure tariff refunds, warning a Dec. 15 deadline could block recovery of duties paid on an estimated basis. Canada will impose a global 25% tariff on certain steel‑derivative imports and strengthen border measures against steel dumping. The EU advanced reforms adding more human-rights and environmental conventions to the conditions for trade preferences, raising compliance thresholds and potential eligibility shifts for suppliers.
Enforcement and Compliance Watch
Importers: Act Now to Preserve Potential IEEPA Tariff Refunds
STR Trade Report •December 5, 2025
With a Supreme Court ruling pending on the legality of IEEPA-based tariffs, importers should monitor entry liquidations and file timely ACE protests to preserve potential duty refunds; if denied, claims can be escalated to the Court of International Trade. Query ACE for entries since Feb. 1, 2025 using HTSUS 9903.01/9903.02 where duties were paid; the 180-day protest window runs from the earliest liquidation, and one protest per importer of record can be filed periodically until a final decision. Extensions of liquidation offer limited value and can increase bond exposure, while immediate 28 USC 1581(i) actions are generally optional now and may be stayed or heighten enforcement/bond risks.
CIT Rejects Gross Negligence; Penalty Limited to Unpaid AD/CVD Deposits
STR Trade Report •December 5, 2025
The Court of International Trade ruled that a post-order entry filed as Type 01 instead of Type 03 was negligent—not grossly negligent—and set the penalty at $14,108.87, equal to the AD/CVD cash deposits owed. CBP had sought up to $56,435.48, but the court emphasized this was a single entry with no prior warnings and a relatively unsophisticated importer after weighing 14 aggravating/mitigating factors. The decision signals that isolated AD/CVD entry errors without willful disregard may be penalized in line with duty loss, while reinforcing importers’ obligation to track new orders.
CBP to Give CTPAT Trade Compliance 48-Hour Forced Labor WRO Notice
STR Trade Report •December 4, 2025
CBP will provide, to the best of its ability, 48 hours’ advance notice of new forced labor Withhold Release Orders to CTPAT Trade Compliance members who have email notifications enabled. Early alerts will help importers and other participants prepare for detentions at U.S. ports, adjust sourcing, and mitigate disruption. Members should verify their Trade Compliance points of contact have the email notification box checked to receive notices.
Courts, CBP and DOJ Shift Tariff and Enforcement Landscape for 2026
STR Trade Report •December 5, 2025
A year-end roundup flags a district court ruling that IEEPA cannot be used for tariffs, a decision curbing CBP’s ability to delay bond collections, industry pressure to exempt essential inputs, and the prospect of tariffs tied to currency practices. DOJ signaled FCPA enforcement will prioritize individuals and national security, a new CBP Commissioner was confirmed, and Commerce is weighing two AD/CVD regulatory changes—developments that could reshape tariff exposure, compliance risk, and trade strategy heading into 2026.
Export Controls and Security Trade
USCC Seeks Overhaul of China Export Controls: Chips, Robotics, Investment
STR Trade Report •December 4, 2025
The U.S.-China Economic and Security Review Commission’s annual report urges Congress to create a consolidated economic statecraft entity and expand BIS authorities—chip tracking, cloud-access license controls, an embedded intelligence unit, a policy of denial for China licenses, and whistleblower incentives—to counter evasion. It also recommends codifying Hong Kong’s loss of special treatment with heightened enforcement, coordinating AD/CVD remedies with partners, probing Chinese robotics dumping while expanding controls on autonomous systems, mandating supply-chain and pharma API origin reporting, banning Chinese-linked energy storage with remote monitoring, and adopting a presumption of denial for risky foreign investments. If enacted, these moves would raise compliance burdens and licensing risk across advanced tech, pharma, energy storage, and cross-border investment.
U.S. launches USXPORTS.gov, replacing ELISA with public case tracking
STR Trade Report •December 4, 2025
Commerce, State, and Defense launched USXPORTS.gov, a unified portal that replaces ELISA and adds a centralized, publicly accessible status search for direct commercial sales (DCS) export license requests. The platform streamlines license tracking and boosts transparency for the defense industrial base, reducing administrative burden and improving visibility into application progress.
WTO champions interoperable global AI standards to safeguard open trade
WTO Latest News •December 1, 2025
At the 2–3 December International AI Standards Summit in Seoul, WTO DDG Jean‑Marie Paugam urged governments and standards bodies to align AI rules, warning that fragmentation would undermine innovation, interoperability and inclusion. He highlighted the WTO’s convening role—through the TBT Committee and transparency disciplines—in encouraging members to base AI-related regulations on international standards, and met Korean trade officials ahead of MC14 to deepen cooperation. Expect greater emphasis on internationally recognized AI standards in compliance and TBT notifications, with alignment critical to preserving market access for AI-enabled goods and services.
Facilitation, Agreements and Transparency
WTO members plot 2026 TFA review as Category C deadlines bite
WTO Latest News •November 30, 2025
WTO members began shaping the 2026 review of the Trade Facilitation Agreement, calling for an open, evidence-based assessment of implementation progress, technical assistance effectiveness, and remaining bottlenecks. Implementation stands at nearly 81% with 161 ratifications; 2025 marked a peak for Category C implementation (159 measures due), prompting a record 93 extension requests and exposing pain points in single windows, border agency cooperation, advance rulings, AEOs, and risk management. A new Secretariat TA tracker and a TFAF survey flagged geographic imbalances in support as members shared digitalization and AEO practices—setting up key funding and policy decisions for 2026.
WTO flags 62 unnotified RTAs amid review of five deals
WTO Latest News •December 1, 2025
At its 2 December meeting, the WTO RTA Committee reviewed five accords—China-Ecuador; UK-Cote d'Ivoire; UK-Ghana; Korea-Israel; and Türkiye-Bosnia and Herzegovina—reporting four new notifications and two amendments under the Transparency Mechanism. The chair warned that at least 62 RTAs in force remain unnotified, underscoring transparency gaps that can complicate compliance, market-access planning, and rules-of-origin alignment. China urged notification of non-conventional deals; the next meeting is set for 3 March 2026.
USTR Schedules Dec. 3–5 Hearing Ahead of USMCA Joint Review
USTR Press Releases •December 1, 2025
USTR will hold a public hearing December 3–5, 2025 at the U.S. International Trade Commission in Washington, D.C., to inform the first six-year Joint Review of the USMCA set for July 1, 2026. The proceeding follows prior Federal Register notices and includes a published witness schedule; stakeholders should monitor testimony that could shape priorities and potential changes affecting North American market access, rules of origin, and dispute settlement.
WTO, World Bank launch services trade dashboard, regulatory practices handbook
WTO Latest News •December 2, 2025
The WTO and World Bank unveiled the TS4D online platform with a Trade in Services Competitiveness Dashboard and a Handbook on Good Regulatory Practices to help developing economies benchmark performance, prioritize strategies, and plan regulatory reforms. The tools integrate services trade data and policy metrics (including STPD and STRI), with implementation underway in regions such as MENA and East Asia alongside multi-agency work on services export promotion and training for senior officials. For trade practitioners, TS4D offers a centralized, data-driven way to improve transparency, attract investment, and expand services market access.
WTO opens ninth review of Thailand’s trade policies, 1–3 December 2025
WTO Latest News •November 30, 2025
The WTO’s Trade Policy Review Body examines Thailand’s trade regime on 1 and 3 December 2025, drawing on an independent Secretariat report and a policy statement from the Government of Thailand. The review offers an authoritative snapshot of tariffs, non-tariff measures, services, and regulatory trends—helping traders assess market access and compliance risks in a major ASEAN economy. Stakeholders should track the Chair’s concluding remarks and follow-up for signals on policy direction and facilitation priorities.
Court and System Operations
CIT maintenance Dec 5–6 to cause intermittent CM/ECF, PACER access
CIT News •December 4, 2025
The U.S. Court of International Trade will conduct network maintenance from 10:00 PM EST Friday, December 5 to 4:00 AM EST Saturday, December 6, during which access to the court website, CM/ECF, and PACER may be intermittent. Filers should plan around this window to avoid e-filing or docket research disruptions.
CIT Pay.gov Maintenance Pauses Fee-Based E-Filings Dec. 13, 6–10 pm ET
CIT News •December 3, 2025
Pay.gov will undergo maintenance on Saturday, December 13, 2025, from 6:00–10:00 pm ET. During this period, fee-bearing documents cannot be filed in the Court of International Trade’s CM/ECF system. Plan filings around the outage to avoid deadline complications.
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