Global Logistics & Tariff Update 4.4.25

Tariffs:

Tariff Implementation dates: We have circulated updates all week on the new tariffs imposed by the Trump administration, with a 10% universal tariff going into effect at 12:01 am April 5 and reciprocal tariffs going into place at 12:01 am on April 9. Cargo on the final mode of transport to the USA prior to these deadlines, will be exempt from the tariffs. Canada and Mexico remain unaffected by the executive order on new tariffs and USMCA eligible product continue to receive treatment per the USMCA agreement. Negotiations and retaliation are already kicking in and we will continue to update the status of the tariff changes.  Should anyone need a copy of the list of reciprocal tariffs or any other information, please let us know.

Toast Not Tariffs Petition: WSSA is part of the Toast Not Tariffs Coalition (TNT) and supporting the industry wide effort to fight the tariffs.  With the recent announcements TNT has put together a Grassroots petition letter to the Trump administration. 1,882 signatures have been received as of this morning and the goal is to get over 2,000 by the end of the day. If you are interested, please sign the Toast Not Tariffs Petition. 

Section 232 Additional Aluminum Derivate Products Tariff: CSMS #64639013  has been posted providing guidance for the additional aluminum derivative tariff which now includes beer. For beer HTS Codes 2203.00.0060 (“Other beer”) and 2203.00.0090 (beer made from malt in containers each holding over 4 liters), a 25% ad valorem duty will be charged on the value of the aluminum content.If anyone has any questions on how this will be applied and how it relates to the other tariffs imposed, please let us know. 

Logistics:

Mexico Port Delays: Ports of Lazaro Cardenas and Manzanillo are experiencing delays due to operation challenges caused by larger vessels calling the gateways. The delays have been up to five days as of earlier this week. Please reach out to your forwarder should you have concerns about your product.

Argentina Customs Strike: Effective yesterday, April 3, and today, April 4, Argentine Customs will be on strike from 9:00 AM to 5:00 PM. The strike will include a computer blackout in all the country’s offices. No containers will be cleared during this time causing delays and congestion at the border to Chile. We will provide updates as necessary.

Delays in Ports of Rotterdam and Antwerp: Due to congestion the Port of Rotterdam is facing delays averaging 3-5 days and the Port of Antwerp is seeing delays between 2 – 7 days. The Port of Antwerp has advised that due to the heavy congestion they will reduce the export delivery window from 7 days to 5 days. A new process has been implemented regarding yard openings, with yard openings being communicated 8 days prior to ETA and the actual yard openings available 5 days prior to ETA. The reduced openings will be in effect until further notice.

Port of Kaub (Germany) Low Water Level Surcharge: The Rhine water level remains low leading to potential low water surcharges. Please be aware that shipments moving on barges on the Rhine to the major ports for loading may be incur additional fees.

Severe weather in Kentucky and Tennessee: Heavy rains and flooding have led to road closures and impacted business operations. The area is preparing for continued flood issues and there may be disruption at intermodal/rail hubs due to the weather.