Tariff Changes, Trade Talks & Canal Moves

Trade Deal Unfolds as Tariff Court Battle Stays in Motion

As U.S.–China tariff negotiations continue to dominate headlines, a federal court decision this week added another layer to the story. On June 10, the U.S. Court of Appeals for the Federal Circuit granted a full stay allowing U.S. Customs and Border Protection (CBP) to keep collecting tariffs under the International Emergency Economic Powers Act (IEEPA), despite ongoing legal challenges. The court’s en banc panel will hear arguments on July 31, but for now, importers should expect to keep paying those tariffs through the rest of 2025. You can view the official court order here: Federal Circuit Order 25 1812.

Even with litigation in motion, the White House may still raise tariff rates again as early as July 9, which could align with the expiration of the current 90 day reprieve for certain trade partners. That gives importers limited time to prepare for potential increases, especially on categories like consumer electronics, auto parts, and textiles. Staying flexible with suppliers and landed cost estimates will be key in the weeks ahead. President Trump posted on social media this week that a new U.S.–China trade deal is essentially finalized, pending joint approval with President Xi. The deal outlines a 55% tariff on U.S. imports from China and 10% on U.S. exports to China, along with rare earth supply agreements and educational access provisions. While not legally binding, it signals rapid changes ahead.

At Southern Star Navigation, we’re closely tracking both the legal and political shifts shaping this trade terrain. If you need help reviewing your import categories or planning before the July 9 deadline, we’re here to support.

Steel & Aluminum Tariffs: CBP Issues Final Correction to HTS Lists

U.S. Customs and Border Protection (CBP) has released updated HTS code lists for steel and aluminum tariffs under Section 232 following the final Presidential Proclamation published in the Federal Register on June 9, 2025 (90 FR 24199). These updates correct discrepancies found in the original June 4 lists and officially remove several HTS codes that were mistakenly included in the initial announcement. No new codes were added, and the applicable tariff rates—50% for most countries and 25% for the UK—remain unchanged.

For importers and compliance teams, the biggest takeaway is this: if your goods were listed on the June 4 draft, double-check the finalized June 9 version before calculating duties. A total of five HTS codes were officially removed—three from the aluminum list and two from the steel list—because they were not actually included in the binding annexes. Examples include vehicle parts (8708.99.6890), refrigeration equipment components (8418.99.8050), and aluminum foil (7607.11.6000). These removals clarify which products are truly subject to the new tariff increases and help reduce potential overpayments or misclassifications.

The updated CBP Cargo Systems Messaging Service (CSMS) messages now reflect only the legally enforceable classifications. For aluminum, CSMS #65288784 replaces the previous version. For steel, CSMS #65289012 is now the authoritative source. The Federal Register annex is the final word in determining tariff liability, and CBP’s update brings all documents into alignment. While no new HTS codes were added, importers should take note of those that were initially included and later removed. This could signal potential targets for future inclusion under evolving enforcement priorities tied to Executive Order 14257.

We encourage our partners to review their product classifications and confirm whether their shipments are still covered by Section 232. If you’ve already taken action based on the June 4 list, now is a good time to update your internal systems and customs documentation. As always, Southern Star Navigation is here to help you stay compliant and ahead of the curve. Federal Register 90 FR 24199

Green Light for New U.S.-Mexico Freight Corridor

On June 9, 2025, President Trump issued a Presidential Permit authorizing Green Corridors, LLC to construct and operate a commercial elevated guideway border crossing in Laredo, Texas. This new infrastructure, part of the Green Corridors Intelligent Freight Transportation System, is designed to create a direct link between inland Mexico and key U.S. transportation routes, enhancing trade efficiency and border logistics. The elevated guideway will connect Monterrey, Mexico to Interstate 35 near Laredo, Texas—just downstream from the Colombia Solidarity Bridge.

The project is being closely coordinated with multiple federal agencies and includes commitments for environmental compliance, inspection facilities, and long-term operational funding. While construction is still in the early planning phase, the development signals growing public-private investment in smart cross-border infrastructure. Once complete, this corridor is expected to relieve congestion, streamline customs processing, and support faster movement of goods between the U.S. and Mexico—benefiting shippers, logistics providers, and regional economies on both sides of the border. Presidential Memoranda

China Manufacturing Sees Sharp Decline as Export Pressure Builds

China’s manufacturing activity took a hard hit in May, falling to its lowest point since 2022. The Caixin Manufacturing PMI dropped to 48.3%, signaling a clear contraction in factory activity. The downturn is largely driven by weaker export demand, growing inventory levels, and increased tariff pressure from key trading partners like the U.S. Smaller exporters, particularly those in newly targeted sectors, are feeling the squeeze the most. China’s official Manufacturing PMI for May came in slightly higher at 49.5%, but it still pointed to continued softness in factory activity. The drop in factory jobs and rising inventory levels paint a concerning picture of slowing demand and delayed shipments.

Beyond manufacturing, China’s broader economy is flashing warning signs. Property investment fell by over 10%, retail sales growth missed expectations, and manufacturing output declined for the first time in nearly two years. Analysts note that the weakening momentum could carry global trade implications, especially for companies relying on Chinese parts or finished goods. At Southern Star Navigation, we’re watching these developments closely, as shifts in China’s supply chain could influence pricing, sourcing decisions, and lead times for our partners across the international shipping landscape.

Annex V Adds Major New Tariffs Targeting Chinese Port Equipment

Annex V is the newest section added to the U.S. Trade Representative’s (USTR) tariff enforcement strategy, and it brings some big changes for importers of port equipment. Released in early June 2025, this annex focuses on ship-to-shore cranes, containers, chassis, and their components if they are made in China or include Chinese parts. The proposed tariffs could go as high as 100%, making these items significantly more expensive to bring into the U.S. The public hearing for Annex V took place on May 19, and the formal text was published shortly after.

This update doesn’t just impact Chinese-made goods. If any part of the equipment—such as the boom, wheels, power units, or even the control software—comes from China or a Chinese-controlled entity, the full tariff still applies. That means even equipment made in other countries could be subject to the same high tariffs if it uses Chinese parts. Importers will now need to provide clear proof that their cargo is free of Chinese components or influence, or risk facing the full tariff amount.

The term “Chinese-controlled” goes beyond ownership. If a company is at least 25% owned by a Chinese entity, or if a Chinese firm has a say in how the equipment is built or used, then it’s considered Chinese for tariff purposes. This also applies to contract manufacturing situations. It’s a significant shift and is meant to block loopholes that let Chinese companies route goods through third countries to avoid U.S. duties.

Southern Star Navigation is keeping a close eye on these developments. If your business imports port equipment, we can help you review your documentation and sourcing strategies. Verifying the origin and control of your equipment will be critical for staying compliant and avoiding unexpected costs. You can review the official USTR release here (PDF).

Panama Canal Eyes Logistics Hub to Protect Port Neutrality

The Panama Canal Authority is exploring plans to revive its long-stalled Corozal Container Terminal project in response to growing concerns over concentrated control of Panama’s port infrastructure. This move comes as shipping lines worry about reduced competition following a proposed $23 billion acquisition deal that would place many existing canal terminals under the influence of one operator, TiL, a division of Mediterranean Shipping Co. The Panama Canal’s administrator confirmed that the new terminal would be developed as a neutral, common-use facility available to all carriers, strengthening the canal’s competitive position and independence.

Currently, several private port operators manage terminals along both ends of the canal, but a pending deal between Hutchison Ports and a BlackRock-led consortium could further consolidate capacity. By reactivating the Corozal terminal—originally shelved in 2017 due to lack of bids—the ACP aims to ensure fair access for global shipping lines amid intensifying geopolitical pressure from the U.S. and scrutiny from Chinese regulators. As this new plan unfolds, Southern Star Navigation is keeping a close eye on the June 19 ACP briefing and will continue monitoring how this impacts port congestion, routing options, and carrier decisions for international ocean shipments.

Cargo Origin Shifts May Reshape US Port Volumes

Recent shifts in tariff strategy are already beginning to influence cargo origins, and this could reshape how imports flow through US ports. As the US moves toward assigning different tariff levels by country, many importers are starting to adjust their sourcing strategies. In 2024, more than 41% of all US container imports (TEUs) came from mainland China. But as tensions rise, many of those shipments are beginning to shift to other parts of Asia, including Vietnam and India. During the 90-day pause on additional tariff increases, importers have rushed to reroute as much freight as possible through lower-duty pathways.

These shifts affect each US coast differently based on where their cargo typically comes from. In 2024, 65% of China-origin TEUs entered through the US West Coast, compared to 27% on the East Coast and 8% on the Gulf. If that freight is now coming from Southeast Asia or India instead, the balance begins to change. For example, the East Coast received 86% of TEUs from India last year. While the West Coast remains strong for Northeast Asia trade, evolving trade policies and sourcing adjustments are creating new opportunities across East and Gulf Coast gateways. At Southern Star Navigation, we are helping clients explore alternative trade lanes and new country-of-origin strategies to ensure continued cargo flow, cost savings, and tariff compliance.

Trans-Pacific Air Cargo Shows Signs of Life as Freighters Return

Trans-Pacific air cargo demand is slowly picking back up as some carriers bring freighter aircraft back into service. This shift is tied to restocking in the United States and a modest rebound in shipments of general cargo like semiconductors, tech products, pharmaceuticals, and perishables. The recent tariff shake-ups have also pushed some shippers from ocean to air. However, this rise is not nearly enough to match the sky-high e-commerce demand that used to fill dozens of freighters a day. In fact, changes to US de minimis rules and China import duties have cooled e-commerce shipments significantly.

Airlines are treading carefully, watching how tariff policies evolve over the summer before adding more capacity. Carriers are advising shippers to consider Southeast Asia routes and book two to three weeks in advance. Meanwhile, analysts are seeing early signs of recovery with China-US spot rates up by 14% since early May. Long term, the industry outlook remains positive. At Southern Star Navigation, we are closely tracking how shifting tariffs and cargo trends affect both air and ocean freight. If you need help planning for what’s next, we are here to support your global logistics.

US Chassis Providers Gear Up for Surge in China Imports

Chassis providers across the U.S. are springing into action as a wave of China-origin imports is expected to hit U.S. ports following the recent 90-day pause on the 145% tariffs. With peak season looming, major chassis leasing companies have started pulling thousands of idle units out of long-term storage. These chassis are being repaired, safety-checked, and moved into strategic inland hubs like Chicago, Dallas, and Memphis to avoid the kind of bottlenecks that choked supply chains during the pandemic. This early preparation is a direct response to anticipated volume shifts, and logistics providers are working around the clock to ensure they’re ready when the cargo lands.

Repairing these long-idled chassis isn’t a quick fix—it takes weeks of inspections, brake and tire testing, and rust remediation before they’re roadworthy. But providers say they’ve learned from past disruptions and are keeping technicians active and trained, even when demand dips. This time around, they’re also leaning on improved forecasting tools and better coordination with carriers and railroads to ensure equipment is positioned ahead of the surge. As more trucking companies operate their own chassis and railroads modify terminal practices, the industry hopes these combined efforts will ease pressure and keep freight flowing smoothly through peak season.

Marine Insurance

Marine insurance is crucial for businesses involved in shipping goods internationally. It provides comprehensive coverage that safeguards shipments against various risks and uncertainties during transit by sea, air, or land. This type of insurance is essential for ensuring that businesses can recover financial losses from potential damage or loss of cargo.

Importance of Marine Insurance:

• Protection Against Financial Loss: Covers the cost of goods lost or damaged during transit, ensuring businesses do not bear the financial burden alone.
• Risk Management: Helps manage and mitigate risks associated with transportation, including natural disasters, accidents, and piracy.
• Peace of Mind: Provides reassurance that goods are protected, allowing businesses to focus on operations without worrying about potential losses.
• Legal Compliance: Often a requirement in international trade contracts, ensuring that businesses meet legal and contractual obligations.
• Comprehensive Coverage: Includes protection against various risks such as theft, fire, and other perils specific to maritime transportation.

For more information, call Southern Star Navigation at 833.782.7628 Ext. 1. Be sure to follow Bethany 🌎 Gabbett for more insights.

or email: starsales@southenrstarnav.com