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Section 301 tariffs set to be permanent feature of US trade policy

US importers should prepare for a prolonged era of Section 301 tariffs, stricter customs enforcement, and fewer opportunities to reduce penalties, according to trade consultancy CargoTrans. During a recent webinar, the company said Section 301 had evolved far beyond its original use against China, becoming the administration's preferred legal mechanism for imposing tariffs on a growing range of imports. The latest measures include 25% on selected goods from Brazil, while further tariffs affecting China, the EU, Vietnam, India, and Mexico remain under consideration. CargoTrans said businesses should no longer think of Section 301 as a single-tariff programme. "301 is a broad-based platform. We can't stop 301 because this is not 'China 301', it is a platform they are using to implement additional tariffs for many different reasons. So you are going to see a variation of 301s from here on," said licensed customs broker and trade advisor Rennie Alston. He also argued that the legal authority effectively allowed the administration to impose tariffs across a range of policy objectives, adding that while the underlying subject matter may differ, "the strength behind the 'just because' is the authorisation to tax." The expansion of Section 301 comes despite legal challenges from 25 US states, which have questioned the administration's use of the tariffs. However, co-CEO of CargoTrans Nunzio DeFilippis believes those cases face "a lot bigger hill to climb" in challenging the administration. "Recalculate landing costs," he advised. "Don't treat Flip 301 as another temporary tariff. Yes, it's being challenged, but this 301s are generally much more stickier than others in the past." Alongside the new tariff regime, CargoTrans warned that the Customs and Border Protection (CBP) agency was entering a far more aggressive enforcement phase. "The customs position is that enforcement escalation is here to generate revenue," said Mr Alston. According to him, the long-standing practice of reducing customs penalties by as much as 90% is disappearing. Instead, mitigation is now limited, with reductions of up to 50% available only to trusted traders and companies able to demonstrate written controls and robust compliance systems. CargoTrans also warned that CBP had adopted a "zero tolerance" approach. "Customs have said 'no more warnings'," Mr Alston urged, adding that enforcement was increasingly focused on recovering duties and penalties. The company urged importers to strengthen governance around tariff classification, customs valuation, and country-of-origin declarations, warning that errors in any of the three could expose businesses to allegations of tariff evasion. "Compliance is not a luxury, right? It is a requirement of demonstration," Mr Alston underscored.. "No longer is it a best practice to have a compliance manual and the appearance of compliance. Appearance is nowhere in these enforcement escalations." Beyond compliance, the speakers urged procurement teams to revisit supplier contracts, clearly allocating responsibility for future tariff increases and considering exit clauses covering actions by the US government. They also recommended that companies reassess sourcing decisions based on total landed cost rather than manufacturing price alone, taking into account transit times, supplier reliability, inventory costs, and tariff exposure. Looking ahead, CargoTrans warned, expect further Section 301 investigations before the end of the summer. "I think we're going to see more," concluded Mr Alston, adding: "I think tariffs are here to stay, in one form or another."

Geo-political uncertainty propels Lufthansa Cargo's Q2

Lufthansa's logistics division - whose main component is Lufthansa Cargo, posted an adjusted EBIT in Q2 of €116m, an increase of 58% on the same period last year while revenues were up 27% year on year (YoY) to just over €1bn. Commenting on the quarter at conference call in Frankfurt earlier today, attended by The Loadstar, group chairman and CEO, Carsten Spohr, said: "The second quarter operating environment for air cargo was anything but easy, the conflict in the Middle East affecting the reliability of global supply chain networks which had to be adjusted at short notice in an environment like this, one thing becomes clear once again. The more complex and unpredictable the global economy becomes, the more a growing cargo business, like Lufthansa Cargo, shows its worth." He continued: "In particular, the crisis in the Middle East triggered a surge in demand on routes to the Far East and for our new and now almost daily, trans-Pacific connection, as well as our new intra-Asian routes." He went on to highlight that "this commercial success was the result of the consistent execution of our strategy and our increasingly strong focus on high-margin products, semiconductors and more and more IP server equipment for the growing AI-driven investments in computers around the world and data centres". In a statement issued before the conference call, the Group noted that in the context of a significantly changed market environment, due to the conflict in the Middle East and the corresponding reduction in competitors' capacities in the region, Lufthansa Cargo's freight business had "gained momentum in overall terms". The reduction in the volume of capacity on the market and the strong rise in fuel costs led to a significant increase in yields compared to previous quarters. Demand was driven by continued strong business in the Asia/Pacific region in particular. This was reflected in an increase in cargo tonnage. India had also performed strongly. Higher fuel and charter costs in particular had a negative impact on expenses. Capacity, expressed as available cargo tonne kilometers (ATK), grew a modest 2% versus the previous year mainly driven by 6% bellyhold growth, particularly from Italian airline subsidiary, ITA Airways. Traffic, expressed as revenue cargo tonne kilometers (CTK) increased 3% YoY while the cargo load factor was stable at 62.9%. Mr Spohr also drew attention to the modernisation of Lufthansa Cargo's ground infrastructure. "At the end of June, we brought the first and most important phase of our new Frankfurt cargo centre into operation. This will make our handling operations even more reliable, more efficient, and more productive, and obviously will contribute to the premium positioning of Lufthansa Cargo." He also remarked on the Group's internationalisation strategy which was beneficial to Lufthansa Cargo with the integration of the marketing of ITA Airways' cargo capacity and closer co-operation with other passenger airlines in the Lufthansa portfolio.

News in Brief Podcast | Week 31 2026 | Peak Season, Middle East Risks and AI

In this episode of The Loadstar Podcast News in Brief, we unpack another busy week across global supply chains. Chief analyst Peter Sand of Xeneta joins us to discuss the latest fallout from tensions in the Middle East, why container lines are continuing Red Sea transits despite ongoing security risks, and what the recent wave of emergency surcharges really means for shippers. We also examine the latest ocean freight rate trends, whether this year's peak season has already reached its high point, and what cargo owners should consider when planning contracts for the months ahead. Then, Loadstar publisher Alex Lennane breaks down the latest financial results from major logistics players, including CMA CGM, Kuehne+Nagel, CH Robinson and Geodis, highlighting what's driving air cargo performance as demand continues to outpace capacity. She also discusses Project44 CEO Jett McCandless' claim that AI could begin to erode CargoWise's dominance by enabling forwarders to build smarter, more flexible software ecosystems.