Page 13: of Marine News Magazine (September 2025)

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On July 31, 2025,

President Trump signed an Executive Order (“E.O.”) modifying reciprocal tariffs that became effective on

August 7, 2025. Some aspects of the impact are well understood such as increased tariff burden on import- ers ranging from 10% to over 40%. Still, other aspects of the practical effect and its knock-on effects for ship- ping are relatively novel. Understanding these measures is essential for all import supply chain participants and their service providers as real impacts on transportation spend and compliance risk come in focus.

The In-Transit Exception

Central to the E.O. is the narrowly de? ned in-transit exception. Shipments that are loaded onto a vessel at the port of loading before August 7th, and that remain on that same vessel until U.S. entry before October 5, 2025, will bear the pre-existing 10% reciprocal tariff.

One key fact that has emerged in recent months is now this relief is limited. Goods that are transferred or transshipped to a different vessel after departure from port of loading after August 7th, which includes feeder vessel service, do not fall under the exception. Such a break in the through movement on the origin vessel means the goods are subject to the full reciprocal tariff depending on the customs country of origin (“COO”).

Transshipment, Feeder Vessels, and Enforcement Risk

The E.O. gives the U.S. Customs and Border Pro- tection (“CBP”) authority to impose an additional 40% tariff on goods it determines or suspects have been transshipped to circumvent the reciprocal tariffs.

Transshipment in and of itself is not a problem – the issue is ILLEGAL TRANSSHIPPING that is con- ducted for the purpose of falsifying the COO on cus- toms entry summaries. This heightens the compliance burden and risk for shippers, bene? cial cargo owners (“BCOs”), as well as their agents, intermediaries, and carriers that rely on multi-leg-vessel routing or feeder vessel systems in their global supply chains. All facts