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Following a key Supreme Court decision that invalidated tariffs under the International Emergency Economic Powers Act (IEEPA), the Trump Administration is implementing a new 10% global tariff under Section 122 of the 1974 Trade Act.

• New tariffs take effect February 24^th
• The tariffs can last for up to 150 days
• Goods from Mexico and Canada are excluded due to previous trade agreements.
• The law is unclear about whether the administration could restart the tariffs immediately after the 150 days via another executive order. The U.S. Congress may have to take action to extend them.

IEEPA tariffs will no longer be collected effective February 24, 12:01 am EST. There is currently no operational guidance from U.S. Customs and Border Protection (CBP) regarding IEEPA refunds. Importers should ensure their ACH refund accounts are properly configured with CBP, as this will help prevent delays if/when refunds are authorized.

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The U.S. Supreme Court ruled that the International Emergency Economic Powers Act (IEEPA) does not provide authority for certain tariff measures imposed under that statute. IEEPA is a national security law that allows the president to regulate economic activity during declared emergencies.

The decision does not affect all existing tariffs, and other trade authorities remain in place. As agencies evaluate next steps, the broader tariff landscape continues to evolve. The court ruling did not indicate how the U.S. government expects to return billions of dollars that it has already collected from importers. 

OIA is actively monitoring these developments and will share practical guidance with shippers as more clarity becomes available.

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Two of the world’s top ten container shipping companies will merge, pending shareholder and regulatory approvals. Hapag-Lloyd signed an agreement with ZIM Integrated Shipping Services Ltd., under which Hapag-Lloyd will acquire 100% of ZIM’s shares at USD $35.00 per share, with the total transaction exceeding $4b. The combined business would involve 400+ vessels and >3m TEUs of capacity. 

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The European Union is suspending tariffs on 93b euros (USD $109.8b) ​of U.S. imports for an additional six ‌months. The extended suspension will apply from February 7^th through August ⁠6^th.

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Exports from Latin America have surged over the past 12 months, with Brazil, Argentina, Mexico, and Peru all showing a record number of overseas shipments. 

Source: Brazil’s Ministry of Development, Industry and Trade; Banco de México; Central Bank of Chile; Argentina’s National Institute of Statistics and Censuses; Peru’s National Superintendency of Customs and Tax Administration, via Bloomberg. Note: Data for Mexico are year-to-date through November; data for Peru are year-to-date (YTD) through October. 

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The order backlog has now exceeded 17,000 aircraft, which corresponds with nearly 60% of the active fleet and is 11x the number of aircraft that are delivered each year. Production bottlenecks continue to limit freighter availability, driving up costs and utilisation rates.

Source: IATA Sustainability & Economics, Cirium Fleets Analyzer, via Air Cargo News. 

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The Trump administration reduced tariffs on India from 25% to 18%, although additional details of the agreement were scarce. India agreed to stop purchasing Russian oil, and the deal is intended to ease trade tensions between the two nations.

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