Tuesday, February 24, 2026 from CTDA

PRIVILEGED AND CONFIDENTIAL: ATTORNEY-CLIENT COMMUNICATIONS: CTDA MEMBER UPDATE ON TRADE ISSUES RELEVANT TO THE CERAMIC TILE INDUSTRY

Last night, Customs issued the following Cargo Systems Messaging Service (“CSMS”) providing instructions to the import community on the implementation of 10 percent additional US “global” tariffs on products from foreign countries. The new “global” tariffs took effect for imports entered on or after 12:01 Tuesday morning, February 24th (this morning).

There are some exceptions (such as certain products that qualify for duty-free status under USMCA, formerly NAFTA). Other than for USMCA-qualifying items, none appear to apply to ceramic tile. Before this morning, most ceramic tile from the European Union was subject to a 15 percent US tariff rate in accordance with the bilateral US/EU trade agreement of last fall; the question is now whether the 10 percent rate applied last evening is in addition to this rate. Despite mass confusion in the trade community and inadequate guidance from CBP, the most likely outcome is that it does not but that the 10 percent is added to the existing Most Favored Nation (“MFN”) tariff rate. Thus, for most ceramic tile whose MFN rates range from 8.5 to 10 percent depending on their HTSUS classification, the new effective tariff rate would be 10 + 8.5 MFN for 18.5 percent or 10 + 10 MFN yielding an effective tariff rate of 20 percent for tile from the EU, both above the maximum before this morning of 15 percent. This “new” US tariff rate for tile would be the same for most countries.

It also must be noted that last night’s CSMS message (in italics) repeatedly characterizes the 10 percent it imposes as “additional duty rates”, seemingly to the MFN rate:

CSMS # 67844987 – Imposing Temporary Section 122 Duties

GUIDANCE

APPLICATION OF ADDITIONAL DUTY RATES UNDER SECTION 122

For articles that are the product of any country entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. eastern standard time on February 24, 2026, and through 12:01 a.m. eastern daylight time on July 24, 2026, the following HTSUS classification and additional duty rate apply under heading 9903.03.01:

Except for products described in headings 9903.03.02–9903.03.11. . . articles the product of any country, as provided for in subdivision (aa) of U.S. note 2 to subchapter III of chapter 99 of the HTSUS, will be subject to an additional ad valorem rate of 10%.

As described in headings 9903.03.02–9903.03.11. . . articles the product of any country, as provided for in subdivision (aa) of U.S. note 2 to subchapter III of chapter 99 of the HTSUS, will be subject to an additional ad valorem rate of 10%.

There is an exception created in HTSUS 9903.03.02 for:

Articles the product of any country that (1) were loaded onto a vessel at the port of loading and in transit on the final mode of transit prior to entry into the United States, before 12:01 a.m. eastern standard time on February 24, 2026; and (2) are entered for consumption, or withdrawn from warehouse for consumption, before 12:01 a.m. eastern standard time on February 28, 2026 .

The five-month period for the global tariffs specified in the CSMS is all that is allowed for the imposition of additional duties such as these under Section 122. It must be noted that the White House this weekend had called for a new “global tariff” of 15 percent; at least for now, that additional tariff is set at 10 percent, as reiterated by President Trump to the EU representatives this morning.

Should you have any questions regarding this member alert, please contact CTDA Legal Counsel at the following telephone number and email address:

Robin Grover
Law Office of Robin W. Grover
Washington, D.C.
Tel. No.: 202-302-1653
[email protected]
www.GroTradelaw.com