IEEPA (in the tune of YMCA)

The International Emergency Economic Powers Act (IEEPA), enacted in 1977, grants the U.S. President authority to regulate international commerce during declared national emergencies. Historically, IEEPA has been used to impose sanctions, freeze assets, and block transactions to address threats to national security, foreign policy, or the economy. It was initially designed to curtail the expansive powers granted under the Trading with the Enemy Act of 1917.

Recent Developments in 2025: IEEPA tariffs have taken on a new role, targeting imports from Canada, Mexico, and China. Key updates include:

• 25% tariffs on goods from Canada and Mexico that do not meet U.S.-Mexico-Canada Agreement (USMCA) rules of origin.
• 10% tariffs on energy products and potash from Canada and Mexico.
• 20% tariffs on goods from China and Hong Kong.

These tariffs reflect a shift in IEEPA’s application, emphasizing national security concerns, such as combating drug trafficking and addressing economic threats.

The recent tariffs imposed under the International Emergency Economic Powers Act (IEEPA) have added a new layer of complexity to the existing Section 301 and Section 232 tariffs. Here’s how they interact and impact each other:

1. Cumulative Tariff Burden: Many products from China are now subject to both Section 301 tariffs (ranging from 7.5% to 25%) and the new IEEPA tariffs (20%). This means that certain goods face a combined tariff rate exceeding 45%, significantly increasing costs for importers.
2. Overlap with Section 232 Tariffs: Some products, such as steel and aluminum, are also subject to Section 232 tariffs (25%). When combined with Section 301 and IEEPA tariffs, the total duty on these items can exceed 70%, creating substantial financial pressure on U.S. manufacturers and importers.
3. Broader Trade Policy Goals: The IEEPA tariffs, introduced in 2025, target a wider range of imports, including those from Canada and Mexico, alongside China. While Section 301 focuses on addressing unfair trade practices, the IEEPA tariffs are framed as addressing national security concerns. This dual approach reflects a broader strategy to address both economic and security issues.
4. Supply Chain Challenges: The overlapping tariffs have created uncertainty for businesses, particularly those relying on global supply chains. Companies must now navigate a more complex tariff landscape, often requiring adjustments to sourcing strategies and pricing models.

By leveraging the expertise of customs brokers, importers can navigate the intricate tariff landscape more effectively and focus on their core business operations.

Read more about Section 232 Tariffs here.

Read more about Section 301 Tariffs here.