Jaguar Freight | Update on the U.S. Government Shutdown and the Impact on Supply Chains

The NCBFAA has issued guidance on the impact of the current U.S. government shutdown. At this point, it is believed that most “fee funded” agencies will continue operations, but some will do so with reduced staffing levels.

Below is additional information provided by the NCBFAA that has been summarized:

Trade is expected to be UNCHANGED, for now.

Agencies responsible for assisting Trump with trade and tariff negotiations are largely insulated after funding lapsed overnight, according to contingency plans published hours before Wednesday’s deadline.

The USTR released its planning document on Tuesday afternoon (Sept. 30), showing that the agency does not plan to furlough any of its 237 full-time employees, at least for now. The document states that the agency will use funds not tied to annual appropriations to continue operations.

The text of USTR’s updated document offers a glimpse into the administration’s priorities, repeatedly emphasizing the agency’s role in advising Trump directly on trade negotiations after he imposed tariffs on nearly every country under the 1977 International Emergency Economic Powers Act.

“Failure to continue these negotiations would jeopardize the economic and national security of the United States,” the document said.

The Commerce Department released its own contingency document outlining plans to retain only about 20 percent of staff, with cuts spread out across the weather, climate, and law enforcement sectors.

Enforcement of existing export rules, as well as a dozen active investigations into key sectors launched under Section 232 of the Trade Expansion Act of 1962, are poised to continue mostly uninterrupted.

One exception is the International Trade Administration, which is having its nearly 1,300 employees whittled down to just 60, according to the Commerce document. The agency administers anti-dumping and countervailing duties.

The Department of Homeland Security posted shutdown plans over the weekend (Sept. 27-28) that explicitly tasked U.S. Customs and Border Protection with maintaining tariff revenue collections once funding lapsed.

Jaguar Freight will provide additional updates as new information becomes available.

Compliments of Jaguar Freight – a Member of the EACCNY