Latest news with #HTSUS
Epoch Times
5 days ago
- Business
- Epoch Times
Commerce Department Expands Steel, Aluminium Tariffs to More Products
Tariffs Non-steel and non-aluminum content will be subject to reciprocal tariff rates the U.S. government has imposed on certain countries, the department stated. The Commerce Department on Friday added hundreds of derivative products that will be subject to the 50 percent tariffs President Donald Trump imposed on steel and aluminum imports. The Department's Bureau of Industry and Security stated that it was adding 407 Harmonized Tariff Schedule of the United States (HTSUS) codes to the list of steel or aluminum derivative products.
AllAfrica
12-08-2025
- Business
- AllAfrica
Vietnam's FDI firms caught in Trump's transshipment crossfire
The US tariff rate officially announced on Vietnam on July 31, 2025, has deepened anxiety among foreign direct-invested (FDI) enterprises regarding penalties for transshipment. Vietnamese exports to the US, as of August 7, are subjected to a 20% tariff, while goods deemed as 'transshipped' will face a 40% tariff. However, no clear criteria for what qualifies as transshipment have been announced by the US. The US Harmonized Tariff Schedule (HTSUS) states that if US Customs determines a product shows signs of being 'transshipped to evade duties,' it will face the additional 40% tariff. While there is a grace period—goods clearing customs before October 5, 2025, will not be subject to the new rates—the lack of clear criteria for enforcement is paralyzing long-term decision-making. Faced with rising costs and declining revenues, some FDI enterprises have already begun scaling down production or gradually shifting their supply chains out of the country. These developments have exposed a core structural weakness in Vietnam's economy, namely its vulnerability to fluctuations in global trade policy. This is because Vietnam's export-driven economy depends on FDI for over 70% of its total export value. Moreover, the manufacturing sector is heavily reliant on imported raw materials, with around 80% coming from China. Meanwhile, the proportion of goods that meet true localization standards—produced entirely by Vietnamese-owned businesses with domestic technology—remains low at just 5–10% of total export value. If 'transshipped' goods are interpreted strictly to mean any product not fully controlled by a Vietnamese production process, then nearly all goods exported from Vietnam could be classified as transshipment and face the devastating 40% tariff. At a time when Vietnam is striving to upgrade its position in the global value chain, this ambiguity could become a significant barrier to attracting high-quality FDI. For now, the situation remains fluid. Vietnam may continue negotiations to lower the tariff rates, with General Secretary To Lam expected to visit Washington. Washington may also reopen talks with other countries, with President Donald Trump quoted by NBC News as saying, 'The US is ready to keep the door open for attractive offers.' The new US tariff policy has already triggered significant cost restructuring among FDI enterprises in Vietnam. According to a June 2025 survey by PwC, 86% of businesses in Vietnam expressed concern about the tariffs' impact and a striking 44% of FDI companies have already begun relocating factories or dispersing production to other countries. Cargill, a major US corporation with over 25 years in Vietnam, has already closed several plants and exited the aquaculture sector. Similarly, Intel has postponed a planned US$1 billion investment to expand its chip production and has initiated global layoffs that include its Vietnamese staff. This has created a 'domino effect,' with other tech giants like Samsung and LG also cutting their workforces and scaling back production in Vietnam. From an economic perspective, tariffs inevitably lead to 'cost-push' inflation, as businesses pass the additional costs onto the final product. As Dr Phung Giang told BBC Vietnamese, this could make Vietnamese goods significantly less competitive in the American market, which currently accounts for 30% of Vietnam's total export revenue. The textile and garment industry, which accounts for 35–40% of that export value, illustrates the problem. According to Hoang Manh Cam, deputy chief of the Office of the Vietnam National Textile and Garment Group (Vinatex), a mere 1% price increase can lead to a 1–2% drop in demand. This is compounded by other costs. Le Hang, the deputy secretary-general of the Vietnam Association of Seafood Exporters and Producers (VASEP), notes that exporters face multiple surcharges that can total up to 75% of a shipment's value. On top of that, logistics costs have skyrocketed, with the price of shipping a container to the US nearly doubling in recent months from $1,850 to between $2,950-$3,500. As export-oriented businesses face mounting external costs, inflation is spreading across Vietnam's domestic economy. In the first half of the year, the State Bank of Vietnam (SBV) injected an additional 2.5 quadrillion dong ($95.3 billion) into the economy, causing the Vietnamese currency to depreciate to a record low against the US dollar, while consumer inflation has risen by 3.57%. While the SBV's monetary policy director, Pham Chi Quang, stated this is a deliberate policy to support businesses, other experts disagree. Dr Le Thi Thu Trang of the Friedrich Naumann Foundation argues this is placing dual cost pressures on exporters—higher prices for imported materials and increased domestic operating expenses. Dr Le Hai Ha from the University of Commerce concurs. He says that the core issue remains Vietnam's underdeveloped domestic industries and high rate of localization, which forces companies to rely on expensive imported materials. In addition to rising costs, FDI enterprises now face declining revenues as international orders evaporate. According to the International Trade Centre (ITC), escalating trade tensions have triggered mass order cancellations across global supply chains—a trend that hit Vietnam immediately after the new US tariff policy was announced. In the first half of April, Ha Chi Minh City's customs department reported that 50% of export orders to the US were abruptly canceled. In Binh Duong Province (now part of Ho Chi Minh City), over $700 million worth of export declarations were canceled in just four days. This wave of cancellations has sent a shock through the broader economy. Vietnam's Purchasing Managers' Index (PMI) recently dropped to 48.9%, its third consecutive monthly decline. According to S&P Global, surveyed exporters overwhelmingly cited the new US tariff policy as the primary cause for the sharp drop in new orders. Key sectors like textiles, footwear and electronics have been hit particularly hard. Domestic suppliers are also feeling the pain. 'As soon as the US announced tariffs on Vietnam, one of our clients suspended an order worth several million US dollars,' said Nguyen Van Ca of Phuc Can Industrial Co, Ltd. Leaders in the textile and wood-processing industries report similar challenges, with stable, year-long contracts being replaced by precarious short-term agreements, typically for only three months. Ultimately, this disruption is delivering a direct shock to Vietnam's labor market. A recent report from the Vietnam Chamber of Commerce and Industry (VCCI) found that more than 637,000 workers have already been affected by these order reductions, with over 53,000 having lost their jobs. Projections from the State Organization and Labor Science Institute suggest this trend will continue, with another 285,000 workers potentially at risk. For years, Vietnam was a primary beneficiary of the US-China trade war, successfully positioning itself as a 'China + 1' destination for investors looking to safeguard their supply chains. The country's low labor costs, geopolitically strategic location and generous incentives made it a top alternative, fueling a wave of foreign investment that peaked as early as 1996, just a decade after the Doi Moi reforms began. But the new US tariff policy is turning that strength into weakness. The tide is turning because, for nearly 40 years, the government has prioritized attracting FDI over developing domestic production capacity. This created a cycle of dependency, leaving the economy highly vulnerable to global economic disruptions. Analysts from Singapore's UOB Bank note that this vulnerability stems from Vietnam's open economy, where exports account for a staggering 83% of GDP—the second-highest ratio in ASEAN, behind only Singapore (182%). The consequences of this vulnerability are already being priced in. Amid the ongoing tariff 'storm,' the International Monetary Fund (IMF) projects that Vietnam's GDP growth could fall to 5.2%, while Moody's Analytics has revised its 2025 forecast downward from 6.5% to 5.5%, citing the direct impact of the US policy. With these mounting challenges exposing the structural weaknesses of Vietnam's economy, the question now is: what policies will Vietnamese policymakers adopt to provide timely support, retain foreign investors and build a more sustainable and resilient future? This article was published in English by The Vietnamese and originally published in Vietnamese by Luat Khoa Magazine. An edited version is republished here with kind permission.
News18
01-08-2025
- Business
- News18
How Much Revenue The US Has Made From Trump's Tariffs, And What's Next In Trade War
Last Updated: US collected $28 billion in tariffs in July, with economists projecting it could rise to $37 billion per month from August. Customs duty revenue crossed $100 billion in fiscal 2025 The US government under Donald Trump is collecting more money than ever from import tariffs, with customs duty revenue crossing $100 billion in fiscal year 2025—more than double what it brought in just five years ago. Treasury and Homeland Security figures suggest the final tally could reach $300 billion by year's end, fuelled by sweeping tariffs imposed on goods from over 100 countries, including India, Brazil, Russia, China and Canada. Customs duties now make up nearly 5% of total federal revenue, up from an average of 1.6% in previous decades. How Much Has Been The Monthly Tariff Intake? July alone saw the US collect a record $28 billion in tariff duties, with economists projecting that number could climb as high as $37 billion per month from August onward, when new rate hikes take effect. The surge is tied directly to the Trump administration's expanding list of tariffs — particularly targeting high-import nations like China, India, Brazil, and Canada. India, Brazil, Canada, and Russia Among Top Targets Among the most affected is India, now facing US import tariffs of 25%, up from 10% just a few months earlier. The hike follows India's continued purchase of discounted Russian oil and what Trump has called 'unfair" duties on US goods. Russia faces indirect pressure through Trump's threat of 100% secondary tariffs on countries purchasing its oil and gas, announced on July 14, unless a Ukraine ceasefire is reached within 50 days. Direct tariffs on Russian goods are limited, as Russia is already subject to Column 2 of the Harmonized Tariff Schedule (HTSUS) alongside Cuba, North Korea, and Belarus, with exemptions for smartphones and electronics granted on April 11. In Brazil, the White House has slapped a 50% tariff on several categories of exports, in part due to political tensions over international alignments. President Luiz Inácio Lula da Silva has vowed to reciprocate with tariffs, and the Brazilian National Congress passed a 'Trade Reciprocity Law" to counter unilateral measures. Canada, too, has seen relations sour — leading to a 35% tariff hike, partially linked to its stance on Palestine and trade imbalances. Tariffs now also apply broadly to goods linked to Russia, including indirect imports via third countries, with some levies reaching 50%. How Much Can Long-Term Revenue Increase? White House estimates suggest the tariffs could generate between $2.6 and $3.9 trillion in revenue over the next decade. Yet think tanks such as Yale's Budget Lab caution that these gains may be offset by lost economic activity, reduced tax revenue, and rising prices. Already, tariffs are estimated to have reduced GDP growth by up to 0.9 percentage points and driven household costs up by an average of $3,800 annually. Legal And Political Challenges Are Mounting While tariffs have delivered fiscal windfalls, they are also drawing legal scrutiny. The US Court of Appeal for the Federal Circuit in Washington DC is reviewing whether Trump's broad use of executive emergency powers to impose tariffs—originally designed for national security threats—is constitutional. If overturned, a significant portion of current tariff income could be at risk. Meanwhile, Trump, the first president to use International Emergency Economic Powers Act (IEEPA), a 1977 law historically used for sanctioning enemies or freezing their assets, had said that the April tariffs were a response to persistent US trade imbalances and declining manufacturing power. He said the tariffs against China, Canada and Mexico were appropriate because those countries were not doing enough to stop illegal fentanyl from crossing US borders, a claim the countries have denied. How Public Is Paying The Price? Despite the sharp rise in revenue, economists agree that most of the cost of these tariffs is borne by American consumers and businesses, not foreign exporters. Dozens of US companies have publicly reported billions in additional costs or lost sales, particularly in retail, auto, and manufacturing sectors. The tariffs have also complicated supply chains and raised uncertainty for global investors, even as they bolster revenue figures for Washington. A new study by Yale University has estimated that Trump's tariff regime will result in an average income loss of $2,400 per household in the short term. The burden is unevenly distributed. While low-income families could lose up to $1,300, wealthier households may see a higher nominal hit (around $5,000) but with less impact on their financial stability, the report said. Another study done at Harvard University's Pricing Lab, who are examining the effects of the 2025 tariff measures in real time using online data from four major US retailers, has found that the price of imported goods into the US and domestic products affected by tariffs have been rising more rapidly in 2025 than domestic goods that are not affected by tariffs, as mentioned by the BBC. What's Next? Tariffs are proving to be one of the most consequential tools in President Trump's economic playbook. While they have added unprecedented sums to the federal treasury, they have also reshaped trade alliances, triggered global market volatility, strained domestic companies, and risked retaliatory action from major economies. The S&P 500 and Nasdaq Composite experienced historic drops in April 2025 following the initial tariff announcements. Retaliatory tariffs from China, Canada, and the European Union, affecting $330 billion in US exports, further complicate the economic picture. The International Monetary Fund (IMF) and Organization for Economic Co-operation and Development (OECD) have downgraded global growth forecasts for 2025, citing US tariffs as a key factor. For US allies like India, the message is clear: Washington's trade strategy has shifted from negotiation to leverage, and nations unwilling to bend may pay the price — both politically and economically. About the Author Shilpy Bisht Shilpy Bisht, Deputy News Editor at News18, writes and edits national, world and business stories. She started off as a print journalist, and then transitioned to online, in her 12 years of experience. Her More Get Latest Updates on Movies, Breaking News On India, World, Live Cricket Scores, And Stock Market Updates. Also Download the News18 App to stay updated! tags : India Exports India US trade tariffs Trade War view comments Location : New Delhi, India, India First Published: August 01, 2025, 09:57 IST News explainers How Much Revenue The US Has Made From Trump's Tariffs, And What's Next In Trade War Disclaimer: Comments reflect users' views, not News18's. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our Terms of Use and Privacy Policy.
Economic Times
01-08-2025
- Business
- Economic Times
Trump signs executive order to raise tariffs on key trading partners citing trade deficit, national security
ANI Trump signs executive order to raise tariffs on key trading partners citing trade deficit, national security United States President Donald Trump on Thursday (local time) issued an Executive Order further modifying reciprocal tariff rates, building upon the national emergency declared under Executive Order 14257 earlier this year, in an effort to address what he described as large and persistent U.S. goods trade deficits that pose a threat to national security and the economy. Invoking authority under the International Emergency Economic Powers Act (IEEPA), the National Emergencies Act, and the Trade Act of 1974, Trump said the new measures respond to additional recommendations received from senior officials on foreign trade practices and their impact on U.S. exports, manufacturing, and supply chains. "In Executive Order 14257 of April 2, 2025, I found that conditions reflected in large and persistent annual U.S. goods trade deficits constitute an unusual and extraordinary threat... I declared a national emergency... and imposed additional ad valorem duties that I deemed necessary and appropriate," the order latest order imposes adjusted ad valorem duties on goods from specific trading partners, replacing earlier rates. Goods from other countries will continue to face a 10% duty under Executive Order 14257, as amended. According to the order, the revised Harmonized Tariff Schedule of the United States (HTSUS) will be updated accordingly and take effect seven days after the order's issuance. Goods in transit prior to the deadline and entered before October 5, 2025, will be exempt. Among the adjusted rates, Iraq will face a 35% duty, Laos and Myanmar 40%, Switzerland 39%, and Syria 41%. India's rate has been set at 25%, while Brazil and the United Kingdom will face a 10% European Union will be subject to a conditional structure: goods with a Column 1 Duty Rate of less than 15% will see the rate increased to 15%, while those with rates of 15% or higher will not face any additional partners currently negotiating trade and security agreements with the United States will continue under the new tariff structure until new orders are issued. The Executive Order also imposes steep penalties on transshipment schemes. Goods determined by U.S. Customs and Border Protection (CBP) to have been transshipped will be subject to a 40% ad valorem duty in addition to other applicable penalties. A list of countries and facilities involved in such schemes will be published every six months to aid procurement and security reviews. Implementation will be overseen by the Secretary of Commerce, Secretary of Homeland Security, the United States Trade Representative, and other senior officials, who are authorized to take all necessary actions, including updates to the HTSUS and issuance of Commerce Secretary and the USTR have been directed to continue monitoring the national emergency situation and recommend further action if foreign partners fail to take adequate steps or engage in retaliatory measures."This order shall be implemented consistent with applicable law and subject to the availability of appropriations. The cost of publication will be borne by the Office of the United States Trade Representative," the order stated.
Yahoo
28-05-2025
- Business
- Yahoo
Passport Global Secures U.S. Customs License, Expands Brokerage Across All U.S. Ports
PALO ALTO, Calif., May 28, 2025 /PRNewswire/ -- Passport Global, Inc. (Passport), a leading global ecommerce solutions provider, today announced it has been officially granted a U.S. Customs and Border Protection (CBP) Corporate Customs License and National Permit. This milestone positions Passport among a select group of providers authorized to act as permitted licensed customs brokers across all U.S. ports of entry—enabling the company to conduct customs business on behalf of ecommerce merchants and unlock a new era of regulatory control, cost recovery, and trade compliance. "With the rise of cross-border ecommerce, brands are navigating increasingly complex customs environments—and too often doing it without a safety net or guide," said Alex Yancher, Co-Founder and CEO of Passport. "Becoming a licensed customs broker strengthens our ability to protect our customers, proactively manage their risk, and ensure they stay compliant every step of the way." Expanded Authority, Streamlined Compliance With this license, Passport can now file customs entries, represent importers, facilitate duty drawback, and offer critical compliance advisory services. These are activities restricted to licensed brokerage organizations under federal law (19 CFR 111.1), and include: File formal and informal customs entries directly into ACE Represent importers of record (IOR) and manage Post Summary Corrections Submit duty drawback claims for goods exported in the same condition Facilitate bonded shipments to bypass U.S. duty for in-transit cargo These services add to the solutions that Passport's Global Trade team of Licensed Customs Brokers has already been offering, including: Product classification consulting under the Harmonized Tariff Schedule (HTSUS) Customs valuation strategies, including transaction value, the first-sale rule, and intercompany pricing models Origin declaration guidance for USMCA and other trade preference programs Support for Partner Government Agency (PGA) requirements such as FDA, CPSC, and EPA Interpretation of CBP rulings, enforcement trends, and notices of action These capabilities come at a critical moment for ecommerce brands. Under Trump administration trade policies, including ongoing de minimis reform and new Section 301 tariffs, international merchants face increased cost exposure and compliance risk. Passport is doubling down on its role as a trusted compliance partner—building on the recent announcement of its patent-pending Seller of Record model and daily tariff coverage at "Securing this license is a significant milestone for Passport," said Traci Fisher, LCB, CCS, and License & Permit Qualifier at Passport. "It reinforces our commitment to delivering trusted, end-to-end customs solutions while ensuring compliance with U.S. regulations at every port of entry. Our clients can now rely on us to streamline their import processes, reduce risk, and navigate trade changes with confidence." Duty Drawback Facilitation and Recovery Many ecommerce brands importing goods into the U.S. and subsequently exporting them—as returns, replacements, or global shipments—are eligible to reclaim up to 99% of duties, taxes, and fees. As a licensed customs broker, Passport can now work directly with CBP to manage the end-to-end drawback process, including: Eligibility screening and drawback program setup Application filing for drawback privileges Data reconciliation and CBP-approved claim preparation Advisory support to optimize drawback strategies in high-duty categories such as apparel, supplements, and footwear "With margins tightening and tariff volatility increasing, duty recovery is no longer optional—it's a competitive edge" said Thomas Taggart, VP of Global Trade at Passport. "Our Global Trade team will help ecommerce brands recapture millions in paid duties through a turnkey, fully compliant drawback process." Real-World Impact for Ecommerce Brands For growing DTC brands, Passport's broker license unlocks faster clearance, fewer surprise fees, and expanded margin protection through duty recovery and bonded shipping options. "Unless you want to hire an international logistics and operations team, which is a huge financial investment and time commitment, Passport has proven to be the most effective as far as getting our products to customers and supporting, acting as an extension of our company and enabling our growth," said Max Christman, Supply Chain & Operations Lead at OneSkin. Whether acting as importer of record or providing product classification consulting, Passport's license adds a powerful new layer of control to its cross-border infrastructure. The company is on a mission to make international shipping as seamless and compliant as domestic fulfillment. Combined with its global DTC logistics network, marketplace integrations, and in-country enablement solutions, Passport delivers the end-to-end support and unmatched regulatory depth to merchants worldwide. About Passport Founded in 2017, Passport is a global ecommerce solutions provider that empowers merchants—like Dolls Kill, Ridge, Ogee, OneSkin, and HexClad—to grow profitably and confidently in over 180 countries. Combining innovative technology, global logistics, and expert compliance and growth support, Passport delivers the right solutions for the right markets at every stage of global growth. With in-house licensed customs brokers and international trade specialists, Passport offers a seamless, flexible experience—from cross-border logistics and in-country enablement services to duty and tax compliance—to help D2C brands unlock their full global potential. Users can learn more at ContactSr. Director & Head of MarketingCasey Logo: View original content to download multimedia: SOURCE Passport Global, Inc. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
