Good afternoon, everyone, and thank you for joining us. You, of course, are logging on to Expeditors' Webinar focused on trade changes, impacts on the Aviation and Aerospace industry. We appreciate you joining today. Just some quick introductions and a little bit of housekeeping before we get started with our content. My name is Samantha Hurst, and I'm one of our managers for marketing and bids for the Americas region of Expeditors. I will be supporting in the background. You should have emails from me that included your webinar confirmation. Should you have any technical issues on this webinar, you are welcome to email me directly, and I'll do my best to support. We'll talk a little bit about some housekeeping items, and then I will introduce our speakers before we get started. Here, just a quick disclaimer for you all. 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As Samantha said, my name is Oscar Stiles. I run the Aerospace and Aviation vertical for Expeditors over the Americas. Just to give you a quick background on what that means, at Expeditors, we work with all industries, but there are three specific industries that we've identified that need an additional layer of kind of subject matter expertise. We have healthcare, we have automotive, and we have Aviation and Aerospace. As part of the Aviation and Aerospace team, my colleagues and I, we are responsible for working directly with our customers to help provide more industry-specific solutions for them and to also, at the same time, educate internally our operations or sales teams so that they understand better how to interact with our Aviation and Aerospace customers. To start us off here, I'm just going to really give a bit of a baseline and a reminder for everyone about where we see things, how they ended at the end of 2024, and a little bit of what we've seen with the aviation and Aerospace industry kind of to start off in the first quarter of 2025. As you could see over here, I mean, there's a few things, and again, none of this should really be news to any of us, right? It's kind of painting this picture. Net orders for aircraft were much lower than we all anticipated. There were a few key factors related to that. The FAA obviously came in. They capped some of the narrow-body production from some of these airframers. That is kind of one of those things that is occurring where new aircraft are not entering the market at the rate or at the pace that was maybe originally anticipated at the beginning of 2024. There was also a lot of groundings due to some engine troubles that were going on with one of the main narrow-body engine providers. These groundings, as they continued to happen, were causing obviously a lot of backlog within the MRO industry specifically. As that is going on, these airlines, at least in the commercial Aerospace side of things, the airlines are having to fly older aircraft longer. Their aircraft are being left in MRO status much longer than originally anticipated. It is causing this massive backlog, right? As these things are occurring, they're trying to find alternate sources to get new parts, new engines, whatever that might be, new interiors, right, all to service their aircraft and keep their fleets moving and obviously turning and getting additional revenue. It is interesting, right? The demand for air travel at the beginning of 2025 looked kind of good. The growth was slowing, but it was still better than it was looking like how it ended in 2024. As this is all very fluid, as we saw yesterday, most, at least U.S. airlines, their stock values were all down yesterday due to impending changes within some of the tariffs and other things that might be coming up. There is a lot of uncertainty right now. There is, again, st ill a lot of fluidity with that. Can I get the next slide? Thank you. Again, that's kind of commercial Aerospace. To start talking a little bit about air cargo, because air cargo does impact a lot of this, right? Within Aerospace, we are our own best customer. We fly most of our stuff everywhere. It's not like several other industries that rely heavily on ocean freight, for instance, right? These two kind of stories that have been going on very recently have been causing a lot of constraints, right? Airbus is postponing their freighter option a few more years, so that's going to take longer to hit the market than originally anticipated. Similarly for Boeing on the other side, this is forcing current freight aircraft operators to rely on their older fleets much longer than they were hoping to. Again, this is just causing additional constraints. Now they're trying to, again, sourcing parts for the existing fleets that are out there, sending their other parts into MRO, which is just causing backlogs. It's all exacerbating this kind of supply chain situation that's going on. When you look at the global air cargo capacity, a lot of what we're seeing is there's additional capacity coming in or that's been predicted to come in, and there's still pretty high demand going on, right? Now, again, this call in many ways is about tariffs. It's not about like the state of the air cargo market, but we're demonstrating this and we're showing this to you all because, again, as these flights are having to go from moving cargo, right? Again, that's just more hours on these airframes, more hours on these engines. They're having to hit their repair cycles much sooner than originally anticipated, and a lot of that is being driven by fewer aircraft that are coming into the market. Again, starting to get into it, right? What's the current landscape look like and kind of why are we all here and what are we all trying to learn with it? There's a lot of things going on right now. We're still trying to figure out what travel is going to look like for this year. It started off a little bit better than last year. It's tanking off right now because we don't know what our buying power is going to be like in whatever countries we're looking to travel into, right? There are markets overseas that are growing and their infrastructure is having to grow as well, but they still depend a lot on the U.S. for a lot of their supply chain needs, whether it's parts, whether it's MRO, whether it's the actual aircraft. Even though these foreign markets are starting to stand up and grow within the aviation sector, they're still very heavily dependent on the United States. More locally, you see some of these bullet points that I have on here, right? $8 billion worth of Aerospace products are moving back and forth from Mexico to the U.S. every year, right? $2 billion of that is coming from China. We're all wanting to know what the impacts are going to be like, right? These global supply chains are just, we've already been pushed to the limit. Of course, now what we have going on this week is we just have these tariffs now that we're trying to figure out what's going on, right? Again, these are just some of the challenges that we have and some of the other things that are causing and what are adding the strains to all of this for us. There you go. Again, just looking at the outlook, the shifting trade policy and the next couple of speakers right now, they're going to speak more to that. I suspect that most of you want to hear more from them than me anyway, and that's fine. Right, shifting trade policy, what's going to happen, right? Is it going to be long-term? Is it going to be short-term? We don't know. We're going to find out what the capacity is looking like. Again, it's not so much about the air cargo market that we necessarily care about, but as we see these flights moving back and forth, it's a good indicator of how these supply chains are going to continue to stay constrained because those aircraft are having to get maintained more often. So far, it was, again, it was predicted that there's going to be moderate growth still in aviation and Aerospace. How are we going to reconcile the growth that we're all anticipating with now all of these additional tariffs and constraints within the supply chain? Now to help move us forward and start looking at some of the other topics and points that are going to be influencing a lot of this, I'm going to hand it over to Fernanda. Fernanda is part of our Onyx team, and she'll be able to take us into this next portion of the presentation. Thank you so much for your time. Thank you, Oscar. Yeah, on that note, right? I'm here to talk a little bit about the sort of trade policy environment and the Geopolitical environment, and then a little bit on the Macroeconomic impacts with what we know today, right? We are about to sort of a few hours before the big reveal around the reciprocal tariffs this afternoon. It should be at 4:00 P.M. EST, 1:00 P.M. PST. What do we know so far, right? The administration has been very tight-lipped about what to expect. Let me say that coming into today, there are two main proposals that we've seen floating around. The first is a universal tariff. We've heard anywhere between 10%- 20% for every country and every good in an effort to establish reciprocal tariffs. The other proposal that we've heard is an individual number for either every country or for a group of countries to start with. There's still no answers about whether it will be immediate. We've heard more often than not that it will be, whether it will be phased, whether it will be every country. You can see there's quite a lot of uncertainty here. The consistent signal that we've seen from the administration is twofold, right? The first is to sort of set the scales, right, and also address the deficits and the perceived unfairness of differences in tariffs as they apply to merchandise. Then also an offer to start negotiating, right, and creating leverage with different countries around the world. The two main constraints and concerns of the administration regarding those two options that I was talking about is that if you have an individualized number for each country, then you might have folks trying to use transshipment or find a loophole or go through countries where you have a lower rate. There is also this desire to have a policy that is easy to communicate, right? Communication is very important to the Trump administration. Go big, but also simple. That seems to tilt the scales a little bit towards a universal tariff, right, where pretty much everybody's on the same page here. No country has an advantage, and it's relatively easy to explain. 20% for everyone. Still a lot of uncertainty here. I also wanted to draw your attention to some of the other initiatives that are floating around. Yesterday was the deadline for the America First memo studies, right? What they have in common is this scrutiny around unfair practices and the deficit and the creation of an external revenue service. Also zooming in on China, right? A review of the Phase One Agreement, if you remember, Section 301, PNTR, right? Permanent normal trade relations. Essentially creating an entirely new tariff schedule for China away from MFN. A lot happening tomorrow on auto, right? For vehicles, May 3rd for parts. The implementation of tariffs on Canada and Mexico two days from now. A number of other things that have been floating around: shipbuilding in China, action on Taiwan semiconductors, chips, pharma, metals beyond steel and aluminum, Venezuela oil importers. There's quite a lot. It all points into the direction of an increase in tariffs and for at least the medium run. The thing with tariffs is that the longer they stay, the harder it is to remove them because you create a constituency behind them, right? Politically, it's very hard to remove tariffs without saying that things have improved if they haven't, right? Depending on what you said at the outset, right? For example, if the deficit doesn't improve meaningfully, then it would be very hard to remove these tariffs. All points into the direction of this reciprocity initiative, right, that I was talking about. Now, we don't know what will be, right? We've heard 20%- 25%, right? It is something that Trump himself has said, "I talked about this on the campaign trail. I talked about 20%," right? This shouldn't be a surprise. In this slide, you see on the right-hand side our estimates of what exactly how could you think about, for example, what reciprocal tariffs could look like for Vietnam, for Canada, Japan, and a number of other countries. This is tariffs, right? Plus taxes, including VAT, plus non-tariff barriers, plus currency manipulation, and any other structural impediments, right? Two of those can be very sort of arbitrary to actually calculate. They're open to a lot of subjective interpretation, especially non-tariff barriers and currency manipulation. Here you see an estimate, right? We don't know exactly. I see a question on the Q&A box. Let me just start addressing some of those, and please feel free to write your questions there as well. Whether we would have a blanket 20% tariff on top of the current 25% for steel and aluminum products. All indications are that, yes, because these tariffs address different grievances that the Trump administration has, different questions, right? The blanket 20% tariff is to sort of even the playing field on the tariff side. It is the reciprocity idea. Steel and aluminum products are based on perceived unfair trade practices. All indications so far are that these tariffs would be stacked one on top of the other, much like what we've seen with Mexico and Canada and China so far. You have an additional 25% on Mexico and Canada so far for non-USMCA products on top. It would be on top of that, but we will see. Similarly, for China, you have an additional 20% related to Fentanyl, right? Most importantly, those come on top of 301, right? And on top of other action. It is a sharp increase in tariffs, but we'll find out more this afternoon. Now we have an unclear timeline for adoption here, right? In many ways, you have the America First trade memo studies due. Today is the announcement. We don't know what the implementation will be. To put some questions or some issues to follow on and to monitor on your end: What is the timeframe for implementation? What is the retaliation to look like? Is there going to be a negotiation? There can be new investigations announced, right? There are some concerns about agricultural products, automotive, digital services, taxes, energy. It is a little bit unclear at this point. We hope there will be more clarity today, right? There are some very practical constraints, right? Technical implementation. We're already seeing a lot of questions on what is CBP likely to do, right? Do they have the capacity to do this? Is this going to do so we can expect delays, right? The scale of the economic impact and the backlash, especially domestically, potential for broad retaliation, the strength of the legal foundation, right? All indications that it is on some solid legal foundation because the courts are unlikely to try and curb executive power or try to dictate what an economic emergency is, for example, right? Or what national security means, right? The scale of circumvention, right? A lot of uncertainty here that we need to continuously monitor, right? Now, I see a question here on can we talk about tariff exemptions on the U.S.-Canada trade agreement? This new crop of tariffs is unlikely to have exemptions, right? Unless there's significant pressure in the background, as we saw, for example, with the de minimis, right? No exemptions, no drawbacks, right? That's what we've seen so far. You may see, for example, and here's complete speculation, some effort to delay or to suspend for a bit of time so that people can be ready for this, especially on the technical side. I'll also let Madeleine address the question from a customs standpoint. From a policy standpoint, we're not seeing any effort to build exemptions. A lot of this, please, the previous slide. A lot of this is also preparing the ground for pressure on the USMCA renegotiations, right? On the left-hand side here, you see what the normal timeline would have looked like. We know that the administration is trying to increase pressure to have an early renegotiation by creating leverage. Some of the goals here, you see sort of a merging of tariff and trade considerations, but also national security considerations. It changes the political and technical makeover of the USMCA so b ear with me. One of the proposals floating around in Washington that we've heard is this idea that we need to contain Chinese trade diversion and investment in Mexico and to some extent in Canada. Could the United States have a veto on investments in these countries, right? Could there be a harmonization of tariffs regarding China? Now, with the reciprocal tariffs, there will be a new level playing field here. That's one of the top concerns here, right? Strengthening U.S.-based manufacturing, right? The whole point of this is for everybody to start producing in the United States. With that, to reduce deficits, right? There will be a lot of questions around currency devaluation, the digital services tax, auto, agriculture, and chemicals, and environmental restrictions to energy and critical minerals. Aerospace and defense have not yet come up as a top concern in the negotiations, but it is one of the most vulnerable, as we all know, sectors here. Revising rules of origin in strategic industries is where it becomes much more painful for Aerospace as well. Canada and Mexico have adopted completely different stances here, right? Canada much more on the retaliation side, and Mexico much more on, let's find an accommodation here. So far, they have both had the same results, right? Whether Mexico's more pro-conciliation stance will win the day is still up for discussion. Let's go to the next slide, please. Thank you. I also wanted to bring to your attention just a little bit more on Chinese-built vessels, right? That's another proposal that's sort of under the radar at this point, but with a lot of impact on industry in general. It does put a lot of supply chains in question here. Perhaps less so for Aerospace and defense. Thinking about the sort of broader impacts that this can have by impacting ocean, indirectly impacting air as well by increasing the cost of ocean shipping. If we can go to the next slide, please. Now, I talked about how countries are adopting different stances. You sort of have two groups, right? You have the more Canada, and the E.U. is in that group. So is China to some extent, really retaliating dollar for dollar, right? An eye for an eye here. The E.U. is threatening to expand its retaliation into trading services. If you include trading services where the U.S. actually runs a surplus with the E.U., it becomes much more painful for the U.S. economy. You have Mexico with a more conciliatory stance, but at the same time, we see a similar pattern with Southeast Asia. Now, India, Modi and Trump enjoy a sort of close relationship here, but that has not exempted India from being part of the conversation in terms of leveling the playing field on reciprocal tariffs. We do not expect an eye for an eye from India. India is not yet a large export base, but it is much more geared towards the Indian economy. We are seeing a little bit less impact here. You have these two schools of thought, right? If we go to the next slide, please. What the U.S. does will dictate what the E.U. does, right? The Europeans have made it very clear that they're ready to use a tit-for-tat type of tactic here. What it begs the question of is what the relationship between the E.U. and China will be if that brings them closer or not, right? The E.U. still sees China as a strategic rival. There are lots of fears within the E.U. about a flood of Chinese exports into the E.U. since these volumes have to go somewhere. For Aerospace and defense, I think here is really one of the most vulnerable aspects, right? Because there's so much integration between the U.S. and the E.U. In many ways, what this does is to deny an opportunity for U.S. manufacturers. If we look at Aerospace and defense, this picture poses a considerable vulnerability on commercial, and I'll talk about that in a second, but opens up a lot of opportunities in defense. European defense spending is set to increase significantly, especially within Germany. Given the stance from the Trump administration, basically, the E.U. wants to close the door to any company that's not European in terms of participation in this defense spending and really prioritizing domestic industry. Everybody's turning a little bit more protectionist here. That also speaks to sort of an extended concept of West. The E.U. and Canada are coming together much more closely. Canada is actively exploring ways to diversify away from the United States, and the E.U. is a primary target also in terms of sort of collective defense mechanisms. That's sort of a little bit away from NATO, right? The same is true of now if you start thinking about the U.K., Australia, right? Sort of a broader coalition, right, that doesn't necessarily include the United States. Can we go to the next slide, please? With China, it's a little bit of also a tit for tat, but much more surgical. China has been very measured so far in terms of how it's reacting to this stacking up of tariffs on Chinese goods. There's a lot of concern about the fact that the Chinese economy is still pretty vulnerable. A lot of overtures, particularly to Japan and South Korea in terms of forming a coordinated response to the United States. Meanwhile, and this is the interesting part in the next slide, please. Under the radar, a lot of developing economies are actually raising tariffs on China because of the excess capacity concern, right? In many ways, it's becoming more expensive, and tariffs are rising everywhere, not just between the United States and its trade partners. What we're looking at is a systemic increase in costs for the Aerospace industry. Now, everybody's hoping for Chinese investments, especially in Southeast Asia, not so much in Europe, in Brazil, in Latin America. There's quite a lot here in terms of, okay, we want your investment, but we don't want your intermediates. We don't want imports from you. It's a systemic growth in tariffs. Let me just take you through a couple of macroeconomic considerations and geopolitical considerations, right? This all weighs on growth, right? We're not exactly yet expecting a recession in the United States, but GDP growth equates consumption, right, and consumer confidence. That means travel. That means spending. That means volumes coming into the U.S., right? We do expect some macroeconomic impact on demand for travel in particular. A bit more of a more concerning picture for commercial aviation. If we go to the next slide, please. If we add a few scenarios, right, on impact on GDP, in scenarios one through three are just the tariffs and then including all the way to three, including a much more measured or much more sharp retaliation, that has a real impact on GDP for everybody, right? Now, we don't know what will be announced today, but today is a really important day for all of us. When we think about GDP, again, think about volumes, think about demand for travel, right? Think about spend, right? Think about how that impacts also the volumes that you yourself are managing. Now, meanwhile, in the next slide, all these conflicts are becoming much, are escalating, essentially, right, which also creates sort of kind of concerning picture, right, for supply chains around the world, especially South China Sea and China-Taiwan. We see a lot of escalation there right now already. There's a question whether this will provide an incentive for China to, in the next couple of years, make good on its plans of expansion in the South China Sea and then bringing in Taiwan. And this has also more of a short-term impact on shipping, right, air and ocean, right? Still a continuation of Russia-Ukraine. We don't expect an improvement in the Red Sea as a result of the escalation between Israel and Hamas. A picture that actually means that we need to get going with a number of initiatives that we're seeing across the board. That's in the next slide, please. What are we seeing from companies across the board, right? Inventory prepositioning, everybody's doing that, right? Everybody's sort of doing immediate, medium, and long-term already. This idea of strategic compliance, trying to find loopholes, but also trying to find ways to outrun the regulator, if you will, unusual region-to-region volumes, network designs, and routes. With bigger long-term implications, right? What we're seeing is a sharp increase in considerations around reshoring. This means that essentially you're going to have three distinct, almost parallel and decoupled broad supply chain regions, right? Self-contained. You're going to have the United States. You're going to have Europe. You're going to have Asia. Sort of diminishing connections from a trade perspective, right? Trying to really insulate supply chains across those three for Aerospace. That is a really tough proposition because the industry was built, as we all know, on duty-free and integration across thousands of suppliers in a supply chain. There will be a period of extreme adjustment here coming up. Now, let me pass on to Madeleine. Thank you all. Thank you so much, Fernanda. All right, everybody. I'm going to give just an update on tariffs and the countries involved. The one thing I can tell you all is we should have news, of course, this afternoon based on President Trump's announcement this afternoon in the Rose Garden, as Fernanda mentioned. It's at 1:00 P.M. Pacific, 4:00 P.M. Eastern. We will have a lot more updates at that point. I would also tell you that we have another broad-scale webinar next week on April 9th. That one will include all the updates that are announced this afternoon. We did get one small update on aluminum derivatives, and I'll get into that when I cover steel and aluminum. Not good news for those who enjoy their beer. Anyway, we'll get into that in a moment. Just to level set and really just kind of a recap of where we are. AIPA, remember, this is that International Emergency Economic Powers Act. This is the first time we've seen this being used in regards to tariffs. This is where President Trump has declared a national emergency on two fronts. One on Fentanyl. As a result, there's a total now of a 20% tariff, which has been put on all goods from China and Hong Kong. Started originally at 10% with an executive order that was issued February 1st, went into effect on the 4th of February. This was as a result of a national emergency declared by President Trump for Fentanyl. Basically, he was saying, "Hey, China is not doing enough to curb the influx or the inflow of Fentanyl into the United States." He reissued another executive order on March 3rd that went into effect for an additional 10% tariff on all goods from China and Hong Kong on March 4th. As a result, a 20% tariff. For Canada and Mexico, as we know, this was kind of a real back and forth. It was difficult to keep up with at the beginning of March. Same thing in the sense that President Trump declared a national emergency in regards to Fentanyl, both on the Canadian and Mexican borders, saying that there was too much Fentanyl coming into the U.S. Mexico and Canada were not doing enough, and also in regards to illegal immigration. Those executive orders were issued also on February 3rd, but both at the time, Prime Minister Trudeau and President Sheinbaum had discussions with President Trump, said, "Hey, we are going to do more in regards to immigration and Fentanyl. We're adding more troops to our borders." President Trump said, "Okay, that sounds good. I'm going to pause and not implement these tariffs." However, he did come back around on March 3rd, where there was a customs message issued to the trade. On March 4th, those tariffs were put into effect, 25% for all goods from Canada and Mexico, 10% for all energy resources coming from Canada. That was short-lived. It was only a few days. It caused a lot of chaos, though, along the borders. There was an additional executive order issued on March 6th. That That was based on the big three automotive companies, U.S. automotive companies that talked to President Trump. They said, "Hey, we really need you to reconsider this. This is really going to be a detriment to the automotive industry. We have USMCA in place." A follow-up conversation by President Trump and President Sheinbaum from Mexico happened. After those conversations, there was an executive order issued saying that, "Hey, all goods that were qualifying for USMCA are exempt from the 25%." Currently, until maybe this afternoon, we have 0% on all USMCA qualifying goods from Canada and Mexico, 25% on all non-USMCA goods from Canada and Mexico, 10% for all energy goods or energy resources from Canada, and a 10% tariff on potash from Canada and Mexico. That is an ingredient used in fertilizer. I had to look it up. I think the important thing to remember, everyone, is what's going to happen this afternoon because that pause on all goods qualifying for USMCA, it was not really clear. I think in the executive order, there wasn't a final date provided, though I think in statements from the Trump administration, it was supposed to end in a month. We'll see if there's more clarity that comes out this afternoon in the update provided by the administration. Everyone's on the edge of their seat, watching their phones and news like crazy to see what will happen. That's still the current state of affairs. If we go to the next slide, please. The other thing that's still open that's confusing and that we don't have a real clear answer on from the Trump administration is whether if you're crossing goods into the United States, products of Canada or Mexico, you're not able at the moment of crossing to claim USMCA, but later you are able to qualify your goods for USMCA. Normally, we can file what's called a 520D and reclaim the duties that you had paid when the goods first entered into the United States. The one thing that's not real clear, and it was based off of some comments from a law firm, is can you reclaim also the IEEPA duties, the International Emergency Economic Powers Act, the duties assessed of 25%? That is not completely clear. We have also reached out to customs headquarters for guidance on that. We have not seen any guidance on that. It is still a little unclear on whether the AIPA duties can be claimed under a 520D post-entry process. More to come on that. We hope that there will be more guidance provided, but that is still an open question. Go to the next slide, please. The international response on these AIPA duties: Canada was very quick to respond. They had responded initially in the beginning of February. They, of course, did not implement anything at that point because there was a pause put on those duties. As of March 4th, they implemented a 25% tariff on $30 billion worth of U.S. goods. Those include food, household items, tools, tires, tobacco, alcohol. You see the list there. Canada also lodged a complaint with the World Trade Organization on March 5th. They do have an entire additional list of $125 billion worth of goods from the U.S. that are slated to go into effect, possibly even maybe later today or tomorrow. It depends on what President Trump announces this afternoon. They do have a big list of other items that they will implement a tariff on, on U.S. goods, depending on the information shared this afternoon. President Sheinbaum, she also has a list. It was called Plan B of tariffs that they will implement on U.S. goods. Again, we do not know what is on that list. Again, depending on what is announced this afternoon, Mexico may or may not implement retaliatory tariffs. They also have a list of non-tariff actions that they will take. Again, it depends on what comes out this afternoon. We are all on the edge of our seats. China/Hong Kong, they did respond with retaliatory tariffs, both on February 10th and March 10th. They also implemented non-tariff actions. On the tariff front, they implemented a 15% tariff on coal and liquefied natural gas and a 10% tariff on crude oil, agriculture machinery, large displacement automobiles, and pickup trucks from the United States. As a non-tariff action, they started an antitrust investigation into Google, and they launched a WTO dispute over these additional tariffs that we implemented on our side. They implemented more tariffs on March 10th, a 15% tariff on agricultural products and a 10% tariff on sorghum, soybeans, pork, beef, you see, food items. In terms of non-tariff actions, they added 10 U.S. entities to the non-reliable entity list and 15 U.S. entities to the export control list. They revoked some U.S. soybean import for import U.S. soybean exporters. They're licensed into China. They were stopping U.S. lumber shipments looking for insects, etc. They have implemented all of that. We assume they will implement more depending on what retaliatory or what tariffs, reciprocal tariffs, President Trump announces this afternoon. China has also retaliated against Canada. Canada implemented a 100% tariff on electric vehicles from China. In response to that, China has implemented a 100% tariff on Canadian rapeseed oil, which went into effect 20th of March, and a 25% tariff on aquatic products and pork. You see the list of items there. It is a lot of back and forth. If we truly implement all these reciprocal tariffs, as Fernanda talked about this afternoon, we will see, I'm sure, a much broader international response. We can go to the next slide, please. The big news, and I think this obviously affected the Aerospace industry quite a bit, is the steel and aluminum tariffs. Those went into effect on March 12th, including derivatives. This was big news, and it caused a lot of chaos as well. These tariffs, though, were implemented under Section 232 of the Trade Expansion Act of 1962, which has to do with national security. President Trump implemented steel and aluminum tariffs back under his first administration. The Commerce Department did an investigation at that time and said, "Hey, we don't have enough steel, domestic steel and domestic aluminum to be able to, for our military, to ensure that our military is able to acquire enough of that, of aluminum and steel to create additional, build additional tanks, etc." When President Trump came back into office, he believes that we still don't have enough domestic steel and aluminum. As a result, he issued two memorandums, one on February 10th and one on February 11th. He said, "Hey, across the board, we're doing a 25% tariff on all articles of steel and aluminum. Exclusion is Russia, where it's 200%. There's no exemptions this time for certain countries. There's also no product exclusions." The administration also instructed CBP, Customs and Border Protection, to prioritize misclassification issues on steel and aluminum. There is going to be a lot of focus on steel and aluminum entries by Customs and Border Protection. No drawback is allowed on these duties. There is no, even if your goods were admitted under privileged foreign, there is no date protection. Your goods are subject to these additional tariffs. Pretty strict. The thing that I think really made things more difficult are the derivatives. If we go to the next slide, please. This just shows kind of a timeline of the original steel and aluminum list that were put into effect in 2018 and 2019, where we had steel and aluminum 25% on full value, and then the original steel and aluminum derivative list, where it was 25% on full value. Then we got into the recent notifications where we do have steel and aluminum derivative lists within Chapters 73 and 76. The 25% is assessed on the full value. Where it gets very tricky is the derivative list outside of Chapters 73 and 76. For those, the 25% is only assessed on the steel and aluminum content. You have to know the steel and aluminum content as well as the country of origin for melt and pour if it is steel and smelt and cast if it is aluminum. This is where it gets very, very tricky. FTZ, of course, is 25% on the full value. This is just showing the different tariff numbers that were implemented for each of these lists. These are very tricky, and it is getting to be a lot more complicated to keep track of this. In addition, we can go to the next slide, please. There's what they call a Section 232 on steel and aluminum FAQ that is posted by CBP, and it's on their website. I would just say the first two points here are the most important. If you don't know for derivatives, if you don't know the melt and pour country for the steel derivative, it's okay to claim other. You can instruct your customs broker to claim other. The tricky one was if you didn't know your smelt and cast country on aluminum derivatives. Originally, the guidance from CBP was claim Russia and pay the 200%, and then later, when you find out what the actual country is for smelt and cast, come back and file post-entry. They've changed that guidance as of last week. Now you can report any country but the U.S. as your country of smelt and cast on aluminum derivatives. That's important to note. Luckily, that change was made, so you no longer have to claim Russia on this if you don't know. There's some other good information which is listed here on the slide, but I recommend that you check this out. In the interest of time, check this out on CBP's website, and we will send you the link. Of course, you'll get a copy of the presentation. If we go to the next slide, please. This was just the response on the steel and aluminum from Europe and Canada. Europe is postponing. Again, depending on what happens this afternoon, they're postponing retaliatory tariffs until mid-April. They're, again, waiting to see what happens this afternoon. Canada did put in a 25% tariff on $30 billion worth of U.S. goods targeting steel and aluminum. That went into effect March 13th. They have another $155 billion worth of U.S. goods targeted on a list depending on what happens this afternoon. The one other thing I meant to mention on the steel and aluminum, specifically on aluminum derivatives, this morning, there was a Federal Register notice issued on imported beer and empty aluminum cans. Those are now subject to an additional 25%. Those derivative lists are going to continue to change. If you're a beer fan, I would suggest going out tonight and purchasing maybe an extra supply. That did come out this morning. Again, we'll see what else happens this afternoon. That's just a quick update. Something I know this is not on Aerospace, but it's important to note what happened last week on automobiles and automobile parts. Again, on April 3rd, we're going to see a 25% tariff on all imported automobiles. Automobile parts, we don't know if that will be implemented on April 3rd, but it can be as late as May 3rd. The interesting thing about autos and auto parts is that the 25% will not apply to just pure U.S. content, which means our automotive friends will need to break out the U.S. content from the non-U.S. content for USMCA qualifying autos and automobile parts. That will be tricky. We should see more, hopefully. We don't even have the annex of tariff numbers unless it's being released right now. As of last night, we don't even have the annex of tariff numbers. Hopefully we will see that also today. That was also a big change. Here, I'm just showing the complexity of how these tariffs are growing in complexity. January 1st, if you were importing an aluminum widget from China, these are the additional duties that you would be paying. Section 301 is still in effect. That went into effect under President Trump's first administration. President Biden maintained those tariffs. They are administered by the U.S. Trade Representative's Office, and they're still in place. You had Section 232, which was in place at the time. It was only 10% on aluminum on January 1st. Of course, the general duty rate for that item. You see how that changed March 12th with the steel and aluminum going to 25% and then the IEEPA tariff from China at 20%. To the right, under April 9th, it's April 9th because that's when our next webinar is taking place. Please note, this is purely hypothetical on the right. But potentially, if we have a reciprocal tariff on China announced this afternoon, potentially of, let's say, 23%, and we're just grabbing that out of the air. If the Venezuelan secondary tariff goes into effect, this is on countries that are purchasing oil from Venezuela. China is a fairly large purchaser of oil from Venezuela. If that goes into effect and it truly is 25%, this is what an aluminum widget would look like from China, potentially in duties of $81. Again, purely hypothetical under April 9th. We have it highlighted here in red just so that you know this is purely hypothetical, but it could look that way. We have to await news this afternoon. Key takeaways, everyone. I think the biggest thing to note is just to track all these developments. We're all trying to, as best we can. There are several different news sources that are out. There are government sites. We do issue news flashes and issue blogs and information as fast as we can. There are all kinds of news sources from law firms, from the government itself, general trade updates, news updates like International Trade Today, World Trade Online. There is a plethora of information out there that you can choose from. I guess on the right there, there are some other points to note. Really look at your country of origin. There are several different things that you can do at this point to get ready or handle, manage as best as possible all these changes. Since we are coming to the end here, just lastly, for those of you who are licensed brokers, there is the certification from the NCBFAA that we did get this particular presentation certified from. Certification number is there in the middle of the screen. Again, you'll get a copy of this presentation so you can record your continuing education credit hours. Sorry, that was very fast at the end. Samantha. I'm the proverbial hook, I guess, Madeleine. Unfortunately, we are closing in on time here. Do we have a second? Do you see any questions in the chat or in the Q&A box that you feel like are really important for the whole group? I know we've got some questions about aluminum derivatives, whether or not they apply to even items that maybe do not contain aluminum. There are just questions as well about steel and aluminum country of smelt. I do not know if you see any of those you want to address really quickly. We've got about a minute left, unfortunately. Oh, gosh. I have to read them. Yeah. We can also, just to let you all know, we can also address these on the side and make sure that you get answers to these or are connected with your Expeditors representative. Yeah. I think that's maybe what we should do, Samantha, is we can get them back, the answers to these, as we normally do. That would be great since we only have a minute. So much to cover in so little time, right? I will just put up this page really quick. As you guys do have one minute left, these QR codes will take you to the registration pages for each of our upcoming events in April. As Madeleine mentioned, we will have the U.S. Customs Market update again next week, and then Mexico Customs Market update, and then another U.S. Customs Market update at the very end of the month. Lots of options for you all to stay up to date. We do hope that you found the content presented today valuable, and we appreciate you guys joining us. Yeah. Thank you. Madeleine, Madeleine, Fernanda, Oscar, thank you all. Yeah. Thanks so much, everybody. Thank you, everybody. Last questions. Thank you. Thank you.