December 3, 2025—Top Stories:
AAEI Joins US Chamber and Others in Support of USMCA
AAEI joined more than 500 business and agriculture organizations and chambers of commerce from across the United States, in conveying their continuing support for the U.S.-Mexico-Canada Agreement (USMCA).
Costco Joins Companies Suing for Refunds if Trump’s Tariffs Fall
Costco sued the Trump administration to get a full refund of new tariffs it paid so far this year, and to block those import duties from continuing to be collected from the retail warehouse club giant as a Supreme Court case plays out.
In the suit filed Friday, Costco said that it risks losing the money it has already paid to satisfy the tariffs even if the Supreme Court eventually upholds earlier lower court rulings that found President Donald Trump did not have the legal power to impose those duties.
The company noted a looming Dec. 15 deadline that could prevent the tariffs that it has already paid on an estimated basis from being refunded. Costco did not say how much money it believes should be refunded to the company.
Costco’s suit, filed in the U.S Court of International Trade, said that U.S. Customs and Border Protection denied the company’s request to extend the Dec. 15 date of so-called liquidation, the final computation of tariffs assessed on imported items.
While an importer has six months to file a protest contesting liquidation, “not all liquidations are protestable,” the suit said.
UK Pharma Exempted from Tariffs
Since the United Kingdom’s National Health Service has agreed to pay more for new medicines, the Trump administration is pledging “to exempt U.K.-origin pharmaceuticals, pharmaceutical ingredients, and medical technology from Section 232 tariffs and will refrain from targeting U.K. pharmaceutical pricing practices in any future Section 301 investigation for the duration of President [Donald] Trump’s term.”
The Commerce Department and Office of the U.S. Trade Representative announced the agreement Dec. 1.
USTR Exempts 200 Categories of Products from China
The Office of the U.S. Trade Representative announced it will continue to exempt nearly 200 categories of products from U.S. tariffs on China, citing progress in the Trump administration’s trade negotiations with Beijing.
“The extension of the of the exclusions follows the historic trade and economic deal reached between President Trump and President Xi Jinping of China announced by the White House on November 1, 2025,” USTR said in a statement.
The exclusions apply to 178 categories of Chinese-origin products, ranging from medical products to certain solar manufacturing equipment, allowing them to avoid tariffs of between 7.5 to 25 percent that President Donald Trump imposed on hundreds of billions of dollars’ worth of Chinese imports during his first term.
The tariffs were due to come into force Nov. 29, but the products will now be excluded until Nov. 10, 2026, according to a Federal Register notice.
Top EU Official Accuses US of “Blackmail” in Trade Talks
According to Politico, Europe’s top antitrust chief Teresa Ribera has unleashed a blistering attack on the Trump administration, accusing Washington of “blackmail” to strong-arm the EU into watering down its tech rulebook.
Commerce Secretary Howard Lutnick said last week in Brussels that the U.S. could modify its approach on steel and aluminum tariffs if the EU reconsidered its digital rules. European officials interpreted his remarks as an attack against the EU’s flagship tech regulations, including the Digital Markets Act.
“It is blackmail,” the Spanish commissioner told POLITICO in an interview on Wednesday. “[This] being their intention does not mean that we accept that kind of blackmail.”
Ribera — who as executive vice president of the Commission ranks second to President Ursula von der Leyen —said the EU’s digital rulebook should have nothing to do with trade negotiations. Donald Trump’s team is seeking to overhaul the framework trade agreement he struck with von der Leyen at his Scottish golf resort in July.
Join AAEI members for a webinar on the EU-US Trade Deal.
Lutnick Announces Korean Tariff Exemptions
Commerce Secretary Howard Lutnick said that the U.S. will retroactively eliminate tariffs on airplane parts, lower auto and auto parts tariffs to 15% and “unstack” the reciprocal rate from most-favored nation duties so that 15% is an all-in number for South Korea, same as for Japan and the EU.
He made the announcement Dec. 1 on X, and said the effective date was Nov. 1.
“The Republic of Korea has officially moved to implement their strategic-investment legislation in parliament. This key step ensures U.S. industry and workers will see the full benefit of POTUS’s trade deal with Korea,” he wrote. He also said he was thankful for the “deep trust” between the U.S. and South Korea.
San Francisco Fed Bank Issues Reports on Tariffs
The Federal Reserve Bank of San Francisco issued a report on tariffs, which concludes that tariffs can affect supply chains, investment, and firms’ input costs, resulting in supply-side effects such as higher inflation and higher unemployment.
Canada Rolling Out New Global Steel Derivative Products
Canada is rolling out a new global tariff on steel derivative products — a fresh measure in the ongoing trade war expected to apply to 40 percent of imports from the United States.
“We know that this decades-long process of our ever closer economic relationship between Canada and the United States has ended, and as a consequence of that, many of our strengths have become our vulnerabilities,” Prime Minister Mark Carney said Wednesday.
“It’s not targeted at the U.S.,” Carney said of the new tariff, downplaying concerns about American retaliation. “It’s a global approach, which is creating some space for Canadian steel producers to fill in.”
The new global 25-percent tariff on “targeted” imported steel derivative products will hit goods such as wires, fasteners, wind towers and prefabricated buildings.
With no end to the U.S. trade war in sight, the Canadian government is also bolstering tariff relief programs to help businesses buffer the blow of the Trump trade policies.
New tariff rate quotas will be applied to imports of steel. From countries where Canada does not have a free-trade agreement, the current 50-percent rate will drop to 20 percent of 2024 import levels.
For imports from outside the United States and Mexico, from countries that have a free-trade agreement with Canada, the rate will change from 100 percent to 75 percent of 2024 levels.
CBP Proposes to Revise Form 7501
CBP is informing the Office of Management and Budget that it is revising instructions for Form 7501, which is used for entry summary filing, to clarify what defines country of melt and pour for steel imports and what defines country of smelted and cast for aluminum imports, according to a Federal Register notice.
Comments are due to CBP on this change in information collection by Dec. 31.
CBP says these changes to Form 7501 come from a “previously approved revision.”
Canada Will Push For Full 16-Year USMCA Extension
Canada is prepared to push hard for a full 16-year extension of the U.S.-Mexico-Canada Agreement when the pact comes up for a mandatory review next year, Ottawa’s Ambassador to the U.S. Kristen Hillman told POLITICO in an interview.
But Hillman added that it’s unclear whether President Donald Trump can be persuaded to restore duty-free trade between the three countries.
“From our perspective, the core objective is to make sure that North America remains resilient and secure and competitive,” she said in a phone interview Wednesday. “The USMCA review is an opportunity to do that. What that looks like exactly, the actual terms of the agreement that will be required to meet those goals, it’s just too soon to say.”
“The interests of the three countries align well, and the task ahead of us is figuring out how to do that in a way that is acceptable for all three countries,” she said.
Despite Trump’s tariff actions during the past year, Hillman said she believes Canada and the United States share common goals that include ensuring both countries have access to strategic resources needed for technology, defense and “the AI revolution.”
“Ultimately, what we want to do is make sure that we have a competitive environment in North America … (in the face of) a really complex and rapidly evolving political and economic landscape” because of technological disruption, competition for resources and overall economic uncertainty, Hillman said.
Under a unique “sunset” provision of the pact, the three countries must review the agreement every six years, with the first examination taking place in 2026.
Top trade officials from the three countries are expected to meet on July 1 to say whether they want to extend the pact for another 16 years. If any country says they don’t want to continue the agreement, they are still required to work with the other members over the next 10 years to resolve concerns before the agreement would terminate in 2036.
As part of the review process, the Office of the U.S. Trade Representative is holding three days of hearings this week, where U.S. industry groups, labor organizations and other interested parties will have an opportunity to weigh in on the pact and any concerns they may have.
Based on those hearings and other input it has already received through a public comment period, USTR is expected to send Congress a report in early January outlining its objectives for the review.
Ways and Means Chair Seeks AGOA Vote Soon
According to International Trade Today, House Ways and Means Committee Chairman Jason Smith, R-Mo., in a brief hallway interview at the Capitol, told International Trade Today that he “absolutely” believes that a renewal of the African Growth and Opportunity Act can get a vote in the House soon.
The trade preferences program expired at the end of September. Shortly after, the White House said it supports a one-year extension. “Been working on it for a long time,” Smith added.
When asked if that vote would happen before Congress leaves on the Christmas break, he said “it better.”
Maersk Could Charge Customers a Premium for On-Time Ship Arrivals
The shipping industry’s perennial struggle with delays is back in the spotlight after Maersk CEO Vincent Clerc hinted at a controversial new strategy: charging customers a premium for on-time ship arrivals. The proposal, floated during a recent investor presentation, raises a critical question: Should shippers have to pay extra for reliability—or should it be the industry’s baseline expectation?
Data from Drewry reveals a rollercoaster of schedule reliability on the Asia-Europe route. After five months of gradual improvement—peaking at 44% of ships arriving on time in September—performance dipped again in October, with just 39% of vessels meeting their scheduled arrival windows. Feederships, which connect smaller ports to major hubs, are currently the hardest hit by European port delays.
Join AAEI members for a webinar on Supply Chain Risks Assessments.
AAEI Industry Insight: From Guesswork to Insight: How Better Information Powers Today's Supply Chains
From clearer charge reviews to faster handoffs between ports and inland facilities, better information is changing the way global logistics works. Explore the latest trends in paperless trade and learn how smarter data is strengthening supply chain resiliency.
