In today’s update: a new China-wide duty, a court-shaken tariff regime, and Strait-of-Hormuz risk every process oil and specialty oil buyer should track. Questions? Contact us here.
Global trade policy has shifted again since June, and the changes cut straight to the landed cost of process oils used in thermoplastic elastomers, EPDM rubber, plastics, inks, and metal-working fluids.
Below is a concise narrative of what has changed, why it matters, and the practical moves you should consider before you place your next order.
Suzanne Kingsbury, Director of Quality
Tariff Landscape As It Relates to Process Oils, Specialty Oils
Washington and its closest trading partners have been busy fine-tuning broad, all-country measures and tightening paperwork rules that touch almost every process-oil shipment. Here’s the condensed state of play:
- Blanket 10% duty still in force. Executive Order 14257, announced April 2nd, set a default 10% tariff on all imports. This baseline rate—far more relevant day-to-day than any single-country surcharge—remains the duty floor until further notice.
- Court fight over “reciprocal” tariffs adds uncertainty. On May 28th, the U.S. Court of International Trade struck down the emergency energy tariffs that had layered 20–25% on top of the baseline for many petroleum-based products, including process oils. However, an appeal is underway, and a May 29th Federal Circuit order put the lower-court injunction on hold; the 20–25% duties remain collectible until the appeal is decided.
- Section 301 chemical exclusions extended to August 31. More than 350 petro-chemical lines—including several process-oil HTS codes—stay duty-free for now, but the clock is ticking. A lapse could add another 10% (or more) to landed cost overnight.
- EU chemical spat heats up. In June, the United States floated a 50% tariff on select European chemicals. As of July 14th, Washington reduced that somewhat, now threatening a 30% tariff on most EU imports beginning August 1st. Brussels is holding off on retaliation while talks progress, but has drafted counter-duties that could hit synthetic-rubber feedstocks on two weeks’ notice.
- Canada signals tougher enforcement. Ottawa’s June 19th warning of higher counter-tariffs on U.S. steel and aluminium didn’t touch energy goods directly, but it foreshadows stricter quota and paperwork checks that could slow northbound and southbound traffic.
- The U.S. says it will lift the Canadian rate on all non-USMCA goods to 35% on August 1st unless a deal is reached. Ottawa has said it will “adjust” its own counter-tariffs the same day and is ready to restrict quotas on sensitive goods if talks fail.
- CBP paperwork scrutiny climbs. Customs exam rates for HTS 2710 and 3403 entries are up as officers verify certificates of origin and hunt for misclassification. Even compliant loads can sit an extra 24–48 hours if documents aren’t airtight.
- China still matters, but indirectly. The 10% blanket duty on China-origin goods mostly shows up in additive costs, not finished process oils. Keep an eye on your suppliers’ ingredient lists so you’re not surprised by a tariff line item.
Geopolitical Wild Card: Iran, Israel, and the Strait of Hormuz
Tensions between Iran and Israel flared after a June 22nd (local time) strike on Iranian nuclear sites. Tehran responded with renewed threats to close the Strait of Hormuz, the chokepoint that carries about one-fifth of the world’s crude and refined products. As of July 14th, Iran says no decision has been made, and the matter is still under review.
Here’s how that could affect specialty oil prices globally:
- Freight & insurance: Even limited harassment of tankers typically pushes Gulf-to-US freight rates up 30% and doubles war-risk premiums.
- Process-oil exposure: Group I/II base stocks and crude often ship through this corridor. A spike in freight can add 15 – 20¢/gal to a mid-viscosity paraffinic process oil—wiping out recent crude-price savings.
Although Iran has never followed through on past threats to shut down the Strait, threats alone can be enough to cause economic disruption. Indicators include:
- Ship traffic. Free sites like MarineTraffic.com show every tanker’s location. If the number of dots moving through the Strait drops or ships start making U-turns, trouble is brewing.
- Insurance headlines. When “war-risk” fees for Gulf voyages spike, it’s a red flag that owners see higher danger—even if no shots have been fired.
- Big-power talks. Keep an ear out for U.S. or Chinese statements urging Iran to keep the Strait open. Calm words from them usually mean safer shipping lanes.
Bottom Line for Process Oil and Specialty Oil Buyers
For most specialty-oil users, the biggest pressures this summer come from North American and European trade rules.
Duties on Canadian energy imports, tighter paperwork at the U.S.–Mexico border, and a looming chemical dispute with the EU can all raise costs or delay deliveries—sometimes overnight.
Landed cost in Q3 hinges on how well you manage USMCA paperwork, Canadian surcharges, and a brewing EU chemical dispute. Securing Canada- or U.S.-origin supply—and double-checking every certificate of origin—will spare you the steepest surprises.
5 Smart Moves to Consider Now
Tariffs and tighter paperwork checks don’t have to derail your budget. Take the following smart moves now to keep costs predictable and shipments moving.
- Re-verify HTS codes—especially 2710.19.x and 3403.19.x—against the Section 301 exclusion list before 31 August.
- Model the blanket 10% duty into every Q3-Q4 scenario, even if your finished oil is blended in the U.S.; additives may be caught upstream.
- Diversify freight lanes: U.S. buyers, line up nearshore, USMCA-compliant, and/or domestic sourcing as insurance against a Hormuz squeeze.
- Tighten paperwork: request updated certificates of origin and review supplier SDS sheets for any China-origin components.
- Alert customers early if surcharges may be needed; transparency beats a margin squeeze on next month’s invoice.
How Renkert Oil Keeps You Covered: Process Oils and Specialty Oils
Renkert Oil’s process oil and specialty oil supply chains are built for North American agility, so tariff flare-ups or EU chemical skirmishes cause minimal disruption to your development schedule.
- U.S. sources. Core grades are refined or blended domestically, giving you a tariff-proof option that never leaves the country until it reaches your dock.
- USMCA-qualified portfolio. When we ship from our neighbors, we do so with airtight North-American certificates of origin—ideal for clearing the U.S.–Canada and U.S.–Mexico borders—to minimize duties and delays.
- Strategic stock on both coasts. Inventory across the U.S. lets us reroute product the same day if Gulf freight tightens or East Coast customs stalls.
We’re staying on top of the latest news on import tariffs so we can continue to provide premium process oils, white oils, base oils, and more at competitive prices.
Stay ahead of every tariff twist with Renkert Oil. When it comes to specialty oil supply security, quality, and the best match with your application, we’ve got you covered.