 |
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Court of International Trade (CIT) Orders Universal IEEPA Refunds: Yesterday (March 4), the CIT issued an order that effectively directs U.S. Customs and Border Protection (CBP) to provide universal IEEPA duty refunds. |
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The CIT order directs CBP to liquidate all unliquidated entries without regard to IEEPA duties. CBP must also re-liquidate any liquidated entries for which liquidation is not final, also without regard to IEEPA duties. |
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CBP has asked in other court filings for a review period to ensure no violation of other Customs laws and no other duties, taxes, or fees are owed (e.g., anti-dumping, Section 301 duties, Section 232 duties, etc.), regardless of entry type or liquidation cycle. This suggests that CBP may slow-walk any possible “automatic” refund process. |
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The parties involved have been ordered to attend a closed hearing tomorrow (March 6). We will not have any more concrete information until at least after this meeting. |
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Businesses should begin taking action as soon as possible. Confirm Automated Commercial Environment (ACE) access and set up ACH details, calculate the total refund amount you’re owed with the Flexport Tariff Refund Calculator, conduct a comprehensive audit of your entries, and file protests with CBP. Additionally, note refund implications for goods subject to Section 232 duties. |
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Protests: Note that liquidations become “final” 180 days after the liquidation date, unless a protest is filed before that date. Flexport’s Trade Advisory experts can assist customers with filing protests. |
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A Potential Increase in Section 122 Tariffs: U.S. Treasury Secretary Scott Bessent stated that the U.S.’s 10% global tariff, which President Trump implemented last week via Section 122, will likely rise to 15% “sometime this week.” |
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President Trump had previously announced on Truth Social that he intends to raise the 10% global tariff rate to 15%. However, since its implementation on February 24, the rate has remained at 10%. |
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Duties imposed under Section 122 are capped at 15% and are only valid for 150 days. The Trump administration’s global tariff expires on July 24, 2026, after which the president will need congressional approval to extend it. |
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Under the existing 10% global tariff rate, some trading partners now face higher total tariffs than they did before the elimination of IEEPA tariffs. For example, many EU goods were subject to a total tariff rate of 15% under the previous rate structure that the U.S. imposed on the EU under IEEPA. But under the new global tariff, many EU goods now face a combined tariff rate that exceeds 15%. |
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Product exclusions: A number of goods are exempt from the global tariff, including certain critical minerals, energy and energy products, certain agricultural goods, USMCA-compliant Canadian and Mexican goods, goods that fall under CAFTA-DR, and more. |
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In-transit exclusion: The global tariff does not apply to goods loaded onto a vessel and in transit on their final mode of transit before 12:01 a.m. ET on February 24, 2026, and entered or withdrawn for consumption before 12:01 a.m. ET on February 28, 2026. |
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Section 232 exclusions: Goods currently or later subject to Section 232 tariffs are exempt from the global tariff. However, the global tariff does apply to the non-metal content of steel, aluminum, iron, and semi-finished and intensive copper products, as well as the non-metal content of their derivative products. |
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De Minimis Remains Suspended: Per an executive order issued shortly after the February 20 SCOTUS ruling, the de minimis exemption remains suspended following the elimination of IEEPA duties. |
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Postal entries are subject to the global tariff rate until it expires, or until CBP establishes a new entry process for postal shipments—whichever comes first. This is a significant reduction from the IEEPA reciprocal duty rate or the $80-200/item rate that previously applied to postal entries. |
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Per a February 23 CSMS, CBP will maintain the same processes currently in place to file entry and collect duties on shipments that previously qualified for de minimis treatment, including those entering through international mail. |
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President Trump Suggests Possible Trade Embargo Against Spain: On March 3, President Trump stated that he had instructed Treasury Secretary Scott Bessent to “cut off all trade with Spain,” following a dispute concerning the use of jointly operated military bases in Spain. The Spanish government had refused to allow U.S. forces to use those bases in military operations targeting Iran. |
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On March 4, U.S. Press Secretary Karoline Leavitt stated that the Spanish government had “heard [President Trump’s] message, and agreed to cooperate with the U.S. military.” However, Spain’s Minister of Foreign Affairs denied Leavitt’s claim, stating that “the Spanish government’s position on the war in the Middle East … and the use of our bases has not changed at all.” |
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Spain is a member of the European Union. Following President Trump’s remarks concerning the potential trade embargo, the European Commission affirmed its commitment to defending Spain “through [the EU’s] common trade policy, and stands ready to act if necessary to safeguard EU interests.” |
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What’s Ahead for the Trump Administration’s Tariff Agenda: Following the end of IEEPA tariffs, businesses should expect increasingly complex tariff rules based on industry sector and product specifics. Flexport’s Tariff Simulator will only grow more valuable as the Trump administration’s trade policies evolve. Other legal mechanisms for imposing tariffs include: |
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Section 122: In implementing a 10% global tariff last week, President Trump became the first president to leverage Section 122 to impose tariffs. Section 122 permits the president to impose duties in response to a balance-of-payments emergency. |
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Section 301: The president may impose tariffs in response to unreasonable or discriminatory foreign trade practices. Because the U.S. Trade Representative (USTR) must first conduct an investigation, it typically takes several months to introduce new Section 301 duties. Following the Supreme Court ruling against IEEPA tariffs, President Trump indicated that his administration would open new Section 301 probes that could lay the groundwork for new long-term duties. |
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Section 232: The president may impose tariffs in response to national security threats. Current Section 232 duties include those on autos and auto parts, steel and aluminum, cabinets and vanities, and more. Because the Department of Commerce must first conduct an investigation, it typically takes several months to impose new Section 232 duties. President Trump also indicated that he would open new Section 232 investigations, in addition to the nine Section 232 investigations that are already open. |
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Section 338: The president may impose tariffs of up to 50% on imports from countries that discriminate against U.S. commerce. Based on the language of the statute, Section 338 duties may not require a formal agency investigation prior to implementation. This suggests that President Trump could potentially leverage Section 338 to quickly levy new tariffs, as he did with Section 122. No president has ever used Section 338 to impose tariffs. |
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Check out our blog for a detailed guide to these legal mechanisms. |
TRANS-PACIFIC EASTBOUND (TPEB)
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Total market capacity is up to 80% and expected to climb to 94% in the coming weeks. U.S. West Coast services will receive the majority of the returning capacity. |
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Carriers are being pressured to pull vessels for services operating in or near the Middle Eastern conflict area to prioritize crew safety. No Trans-Pacific services are directly impacted, but vessel, equipment, and crew rotation impacts may indirectly impact TPEB services. |
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Demand remains flat, in line with levels seen prior to Lunar New Year. |
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The General Rate Increase (GRI) for the first half of March is expected to hold through March 14. |
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Carriers have announced a GRI for the second half of March. |
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Carriers have pushed Peak Season Surcharges (PSSs) to the second half of March, and may push them into April. |
FAR EAST WESTBOUND (FEWB)
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Middle East Conflict: Tensions in the Middle East have further reduced the likelihood of a Suez Canal reopening. |
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Most insurance companies have begun canceling war risk cover for the Persian Gulf and the Gulf of Oman, making it nearly impossible for commercial vessels to operate without specialized, high-cost premiums. |
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Even after tension ceases, it may take another six months of evaluation before vessels potentially pass through the Red Sea area again. |
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Extended transit times due to Cape of Good Hope diversions effectively neutralize overcapacity. |
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The market is undergoing a sluggish recovery following Lunar New Year. Asian factory production is still gradually ramping up, dampening short-term export volumes. |
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Simultaneously, economic growth in the Eurozone remains modest, with persistent inflation and weak consumer confidence suppressing underlying import demand. |
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Operations: Severe congestion at main hubs is compounding operational challenges, resulting in extreme connection delays and restricting overall fluidity: |
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Yard utilization at Rotterdam: ECT, 75–80%; Rotterdam World Gateway (RWG), 80–85%; Maasvlakte II (APMT MVII), 90–95%. |
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Yard utilization at Hamburg: HHLA Container Terminal Altenwerder (CTA), 80–85%; Eurogate Container Terminal (CTH), 85-90%. |
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Yard utilization at Southampton: 85-90%. |
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Singapore: Dwell times of 7+ days; 85-90% yard utilization; and severe vessel bunching. |
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Carriers have adjusted or withdrawn their previously announced Freight All Kinds (FAK) rate increases for early March. |
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Current geopolitical tensions in the Middle East and the effective closure of the Strait of Hormuz have triggered a sharp rise in global oil prices. Faced with surging bunker costs and heightened insurance premiums, carriers are now actively pushing for a new round of FAK rate increases in the second half of March to offset operational overheads. |
TRANS-ATLANTIC WESTBOUND (TAWB)
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Carriers are reporting 90%+ vessel utilization in the first half of March across North Europe and West Mediterranean routes, driven by moderately stronger demand and adverse weather conditions. Carriers have reduced blank sailings. |
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Critical container and chassis shortages persist, notably in Austria, Slovakia, Hungary, Southern and Eastern Germany, and Portugal. This has led to ongoing inland delays of 2 to 4 days. |
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In the first half of March, spot rates from North Europe to the U.S. East Coast remain stable to soft. |
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All major carriers have now published Peak Season Surcharges (PSSs) and Rate Revision Increases (RRIs), effective from late March to early April. |
INDIAN SUBCONTINENT TO NORTH AMERICA
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Middle East Conflict: Geopolitical escalations in Indian subcontinent countries near the Persian Gulf are not directly impacting services from the Indian subcontinent to the U.S. However, the escalations will result in indirect trickle-down impacts, especially in Karachi, Mundra, Nhava Sheva, and Colombo. |
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The UAE is India’s second-largest trading partner. Currently, India cannot export containers through the Strait of Hormuz to the UAE’s largest ports. A backlog of UAE-bound laden containers is building at the Ports of Nhava Sheva and Mundra in Northwest India, as well as other Persian Gulf ports of discharge (PODs). |
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Those origin terminals (Nhava Sheva and Mundra) will see increases in yard utilization and congestion on the water as vessels potentially unload containers destined for Persian Gulf PODs at Indian ports, so that those vessels can be used elsewhere. |
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Expect delays for vessels servicing these ports on service strings that normally connect Indian subcontinent cargo to the U.S. |
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To the U.S. East Coast: CMA CGM and Maersk have begun re-routing via the Cape of Good Hope for services that connect India and the U.S. East Coast, following a brief few weeks of transits through the Red Sea and the Suez Canal. |
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To the U.S. West Coast: Capacity remains available on base-port-to-base-port lanes. Additionally, CMA CGM has added calls at major Indian subcontinent ports like Mundra, Nhava Sheva, and Colombo to the Pearl River Express, its service string from the TPEB into the Pacific Southwest (PSW). The first sailing is currently expected to take place at the end of March or early April. |
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To the U.S. East Coast: The market is anticipating rate increases as the month continues, given increased loadings from India and congestion challenges that are reducing capacity in the market. |
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To the U.S. West Coast: Rate levels currently remain low, but are likely to bounce back in response to rising demand and the domino effects of the Middle East conflict. |
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India, Bangladesh, Pakistan, and Sri Lanka: The air market across the Indian subcontinent is experiencing a period of severe operational volatility. The sudden escalation in the Middle East and subsequent widespread air space closures have heavily disrupted traditional transit routes. |
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Extensive air space closures across key Middle Eastern corridors, including Tehran, Baghdad, and Kuwait, have effectively severed the primary "aerial bridge" between the Indian subcontinent and Europe/North America. |
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European carriers that are still operating are being forced to take significantly longer routes and carry heavier fuel loads. This has led to a sharp reduction in available cargo capacity, as well as frequent shipment offloading to accommodate fuel requirements. |
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Major transit hubs in the Gulf are currently facing operational suspensions, leading to severe delays and heavy backlogs at origin airports across the region. |
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Trans-Pacific Eastbound: The market is steadily recovering. Demand for U.S. East Coast gateways is trending upward, leading to moderate rate increases as capacity begins to tighten. |
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Far East Westbound: This sector is facing critical disruptions. A large number of flight suspensions and air space closures due to the conflict in the Middle East have removed substantial capacity from the market. Expect immediate, sharp rate spikes and extended transit times as carriers detour around affected zones. |
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The market is entering a peak phase (March 18 to March 24) related to the Eid al-Fitr holidays. While Intra-Asia capacity remains available, space to the U.S. and the EU is severely constrained, with some hubs reporting backlogs through mid-March. |
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Mandatory road closures for trucking are scheduled from March 13 to March 29. Specialized permits or escorts will be required, likely tightening pre-holiday cargo movements. |
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Operations are heavily impacted by the Middle East conflict. Multiple carriers have canceled flights or are facing equipment delays, leaving some cargo stranded at origin and necessitating rebookings on alternative carriers. |
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Rates are rising, subject to space availability. |
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Demand remains stable, but the Trans-Pacific Eastbound lane is still clearing backlogs caused by previous winter storms on the U.S. East Coast. |
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On Far East Westbound routes, some carriers have declared force majeure due to regional conflict, which is directly impacting operations. |
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Demand in Malaysia is currently softer, but we expect to soon see rate pressure. |
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The market remains relatively stable on Trans-Pacific Eastbound lanes. However, Far East Westbound capacity is tightening in response to broader regional disruptions. |
(Source: Flexport)
Please reach out to your account representative for details on any impacts on your shipments.
Transit time remained flat from China to the U.S. West Coast, and increased from China to the U.S. East Coast and from China to North Europe.
Week to March 2, 2026
Transit time remained flat at 34 days from China to the U.S. West Coast; increased slightly from 53.6 to 54 days from China to the U.S. East Coast; and increased from 57.9 to 59 days from China to North Europe.
Stay in the loop—read past newsletters here. For more information, connect with one of our logistics experts here.
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