11/07/2025
White House Announces Effective Date of Tariff Reduction on Fentanyl IEEPA China Tariffs
Check out this week’s Customs Corner to read about the reduction of Fentanyl IEEPA China tariffs, the USTR public hearing announcement, and more.
Trade and Customs Updates
1) White House Announces Effective Date of Tariff Reduction on Fentanyl IEEPA China Tariffs
As noted in our Market Advisory that went out on Monday, November 3, 2025, the White House has released executive orders signed by President Donald Trump and FRN notices that put into effect commitments made during his recent meeting with Chinese President Xi Jinping in Korea. Among the key actions, the U.S. will reduce tariffs on fentanyl imports from 20% to 10%, effective November 10, 2025.
According to the executive order, all goods currently subject to a 20% additional duty under Executive Order 14195 will now face a reduced rate of 10%. The new rate applies to all qualifying goods entered for consumption or withdrawn from warehouse for consumption on or after 12:01 a.m. Eastern Standard Time on November 10, 2025.
In addition, the reciprocal tariff that was due to increase to 34% on November 10, 2025, will remain at 10% until November 10, 2026.
References:
- Modifying Duties Addressing the Synthetic Opioid Supply Chain in the People's Republic of China – The White House
- Federal Register :: Modifying Duties Addressing the Synthetic Opioid Supply Chain in the People's Republic of China
- Federal Register :: Modifying Reciprocal Tariff Rates Consistent With the Economic and Trade Arrangement Between the United States and the People's Republic of China
2) USTR Opens Public Comment on Proposed Suspension of Section 301 Actions Against China’s Maritime, Logistics, and Shipbuilding Sectors
The Office of the U.S. Trade Representative (USTR) announced on November 6, 2025, the launch of a public comment period regarding the proposed suspension of trade actions under the Section 301 investigation into China’s practices in the maritime, logistics, and shipbuilding industries.
This move follows a major trade and economic agreement reached between President Donald Trump and Chinese President Xi Jinping, as announced by the White House on November 1. Under the terms of the deal, the United States will suspend for one year—beginning November 10, 2025—the tariffs and fees that were imposed as a response to the investigation. The suspension will cover all actions listed in the April 23 and October 16 notices, including duties and fees related to maritime transport services.
During the one-year suspension period, which will run from 12:01 a.m. EST on November 10, 2025, through 11:59 p.m. EST on November 9, 2026, affected parties will not be liable for or required to pay the duties or fees outlined in the relevant notices. The U.S. will use this time to engage in negotiations with China under Section 301, seeking to resolve the concerns over China’s policies and practices in these sectors.
In parallel, the United States will continue its domestic initiatives and coordinate with allies to bolster the American shipbuilding industry. The USTR is seeking input from stakeholders on the proposed suspension, inviting public comments on the measure as negotiations with China proceed.
The public comment process underscores the administration’s commitment to transparency and engagement as it pursues both trade remedies and diplomatic solutions to address longstanding issues in the global maritime and shipbuilding sectors.
Key Dates:
- November 6, 2025, 12:00 p.m. Eastern Standard Time: Comment period opens.
- November 7, 2025, 5:00 p.m. Eastern Standard Time: To be assured of consideration, submit written comments regarding the proposed modification of the action by this date.
Further information and the procedure for submitting comments can be found in the Federal Register.
Reference:
301 Ships FRN Req Cmts on Suspension FINAL.pdf
3) USTR Reschedules Public Hearing on USMCA Review to December 2025
The Office of the United States Trade Representative (USTR) has announced a new date for its upcoming public hearing on the operation of the United States-Mexico-Canada Agreement (USMCA). Originally set for November 17, 2025, the hearing will now take place over three days, from December 3 to December 5, 2025. Proceedings will begin each day at 9:00 a.m. EST in the main hearing room of the U.S. International Trade Commission, located at 500 E Street SW, Washington, DC.
This hearing is part of a broader public consultation process launched on September 17, 2025, in anticipation of the joint review of the USMCA scheduled for July 1, 2026. The process provides stakeholders and the general public an opportunity to share their perspectives on the agreement’s implementation and impact.
For the latest updates on the hearing schedule or additional information, interested parties are encouraged to visit the USTR’s official website at www.ustr.gov.
Reference:
4) U.S. Adjusts Tariff Procedures for Imported Automobile Parts Under Section 232
The U.S. government has updated procedures for importers to offset Section 232 tariffs on certain automobile parts, allowing eligible importers with a Department of Commerce license to reduce their tariff liability when filing entries, with specific rules based on country of origin and new filing requirements effective November 3, 2025.
In a series of presidential proclamations throughout 2025, the U.S. government has updated the tariff rules for certain imported automobile parts, aiming to address national security concerns and streamline import procedures. Starting May 3, 2025, Proclamation 10908 imposed a 25% tariff on specific auto parts under Section 232. Subsequent actions, including Proclamation 10925 and Proclamation 10984, introduced an "import adjustment offset," allowing eligible importers to reduce their Section 232 tariff liability for these parts.
The Department of Commerce has outlined procedures for claiming this offset, and importers must file their entries through the Automated Commercial Environment (ACE) starting November 3, 2025. Only importers with an approved offset license from the DOC can apply the offset, and it may only be used for tariffs under Proclamation 10908, as amended.
Special filing instructions apply depending on the country of origin, including specific rules for parts imported from Japan, the United Kingdom, and EU member states. Importers must include their offset license number on entry summaries and can submit corrections to recover Section 232 duties paid previously.
References:
- CSMS # 66684128 - GUIDANCE: Duty Offset for Imports of Automobile Parts
- Federal Register :: Amendments to Adjusting Imports of Automobiles and Automobile Parts Into the United States
- Federal Register :: Adjusting Imports of Automobiles and Automobile Parts Into the United States
- Federal Register :: Adjusting Imports of Medium- and Heavy-Duty Vehicles, Medium- and Heavy-Duty Vehicle Parts, and Buses Into the United States
- Federal Register :: Procedures To Administer Import Adjustment Offset Amounts for Certain Imports of Automobile Parts Under Proclamation 10908, as Amended
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