Trade Update: IEEPA Refunds Progress and new Section 301 Tariff Threats

I hope all of the dads in our floral community had a wonderful Father’s Day.

As we move into the final weeks of June, we wanted to share an important update on tariff developments affecting floral importers, including the progress of IEEPA refunds, the Administration’s proposed Section 301 tariff actions, and AFIA’s upcoming participation in Washington hearings on behalf of the fresh cut flower industry.

IEEPA Tariff Refunds: Phase 2 Expected to Begin June 29

When the IEEPA tariff refund process launched in April, U.S. Customs and Border Protection (CBP) outlined a three-phase process for issuing refunds tied to the invalidated IEEPA tariffs.

Phase 1, which began in April, has been moving forward and importers are already receiving refunds.

Phase 2 is expected to begin on Monday, June 29. Once Phase 2 opens, brokers and importers will be able to begin requesting refunds for the next category of eligible entries. AFIA will continue monitoring the rollout closely and will share additional guidance as more details become available.

Section 301 Tariffs: A New Potential Trade Threat

At the same time, the Administration has launched a new Section 301 tariff process, recognizing that the current Section 122 tariffs are temporary and are set to expire on July 24.

The Section 301 action stems from an investigation into approximately 60 economies regarding forced labor enforcement. The Administration has concluded that each of the countries or economies under review has either failed to do enough to prevent forced labor or is otherwise subject to findings that could support new tariff action.

As a result, proposed tariffs of 10% or 12.5% could be imposed on goods from these countries once the Section 122 tariffs expire.