Trade Update: Proposed EU Auto Tariff Increase & CBP Launches CAPE Phase 1 for IEEPA Refunds
As global trade policies continue to evolve, importers are facing new developments that may impact duty exposure, customs compliance, and supply chain planning. This week, two major updates are drawing attention across the trade community: a proposed increase on tariffs for EU-manufactured automobiles and the official launch of CBP’s CAPE Phase 1 refund process for certain IEEPA duties.
Proposed 25% Tariff Increase on EU-Made Automobiles
President Trump announced on May 1 that tariffs on automobiles manufactured in the European Union and imported into the United States are expected to increase to 25% as early as next week.
According to the announcement, the proposed tariff increase is tied to concerns that the European Union is not complying with the current U.S.–EU trade agreement. The statement also noted that vehicles produced in U.S.-based manufacturing plants would reportedly not be subject to the tariff increase.
At this time, official Customs and Border Protection (CBP) implementation guidance has not yet been released. Additional details regarding affected tariff classifications, implementation timelines, and entry requirements are expected in the coming days.
What Importers Should Monitor
Importers involved in the automotive, manufacturing, and distribution sectors should closely monitor:
- Future CBP guidance and implementation instructions
- Potential HTS and Chapter 99 updates
- Increased landed costs on imported vehicles
- Supply chain sourcing strategies
- Entry filing and customs compliance adjustments
As tariff developments continue, businesses may need to reassess pricing structures, sourcing decisions, and import planning to minimize disruption and maintain compliance.
CBP Launches CAPE Phase 1 for IEEPA Duty Refunds
Customs and Border Protection (CBP) officially launched the first phase of the Consolidated Administration and Processing of Entries (CAPE) tool within the ACE Secure Data Portal on April 20.
The CAPE tool is designed to streamline the refund process for certain duties collected under the International Emergency Economic Powers Act (IEEPA). Rather than processing refunds on an entry-by-entry basis, CAPE consolidates eligible refund requests, including applicable interest, into a single filing process.
Under CAPE Phase 1, importers and authorized customs brokers can now submit CAPE Declarations through their ACE Portal accounts for:
- Certain unliquidated entries
- Certain entries within 80 days of liquidation
CBP has also released support materials and ACE guidance documents to assist the trade community with the filing process.
Why CAPE Matters
The launch of CAPE Phase 1 represents a significant operational change for importers seeking refunds tied to eligible IEEPA duties. Companies should review potentially impacted entries and determine whether they qualify under the current Phase 1 criteria.
Proper documentation, entry review, and timely filing will be critical as importers navigate the new refund process.
How Radius International Can Help
Radius International continues to actively monitor trade developments, tariff actions, and CBP implementation guidance to help customers remain informed and compliant.
Our team can assist with:
- Customs compliance support
- Duty and tariff impact reviews
- CAPE refund process guidance
- Entry analysis and documentation review
- Supply chain planning and import strategy
- Ongoing trade and regulatory updates
For questions regarding these developments or assistance reviewing your imports, contact the Radius International team.
