Expeditors International of Washington, Inc. Status update

Thank you, Steph. Thank you so much, Samantha.

Okay, let's dive in. Of course, the best slide of the whole show, the disclaimer. We are doing the best we can here. We are going to give you the best information we have, but just know that we are not lawyers. We are just customs brokers, which is a very noble profession. Here we go. I'm going to start us off with tariff and trade developments. We have not been light on those in the last month. In fact, it kind of blew up the whole system. I'm going to do the best I can to talk about those in a concise and meaningful way. I'm going to cover the ones that were recently implemented and then which are coming soon. Ted is going to talk about tariffs under legal challenges.

Of course, now the court system is right in the thick of tariffs, still dealing with IEEPA. He's going to touch a little bit more on the most recent cases that are popping up for the Section 301 forced labor. Brenda's going to really level set, this will be fun to hear from her, about our key trading partners and what is the status of our relationships with them, and what does that maybe look like. Then Madeline, everyone's favorite topic, enforcement. She'll touch on some CBP enforcement activity. Our favorite, the Trade Fraud Enforcement Guide that came out in the last couple of weeks, and then really give you some more information about that executive order. Let's dive in. When I was making this slide, it kind of cracked me up because I was like, oh, there's actually some space, I guess, for October.

We'll see what is in there. Since we last met, of course, the biggest headline was that Section 122 tariffs expired. Those expired on July 23rd and immediately were replaced at 12:01 on July 24th with the forced labor tariff. We're going to dive into those a little bit more because that has kind of dominated most of our worlds. However, at the same time, we've had some Section 232s coming on. We're going to be touching on the Canada Section 338s that were announced, and what that might entail for us. Then, of course, we always have this long tail of activity that we need to keep an eye on. Let's get going. Before I talk about all the things that have been going on, I just thought it would be really, I almost said fun. Fun's not the right word.

It would be good for all of us just to reset again. Samantha always reminds us, there are many new people coming into the industry all the time. Sometimes I listen to a sentence I say, and I think just 2 years ago, I wouldn't have understood what I was trying to get across. We have the 232s, the 201s, the 301s. All of these things, of course, are the legal basis of how the Trump administration is applying tariffs. This really helps you understand where these are coming from, how durable they are, how long-lasting they are, how long-lasting they are. How long would it take from a case being announced to tariffs potentially coming on? This is the key, right, to really understanding. This is kind of your guidebook of how to understand how tariffs might impact your business in the future.

This chart is actually from a Congressional Research Service paper. If you don't know who they are, they're a fantastic government group whose job is to do research for Congress people and present these reports in a very easy-to-read fashion. If you're new or if you're trying to get people in your organization to understand, this link is a great one to look at. The report, I think, is from April, so not too old, but it really highlights some of the main legal basis in how tariffs can come. The ones that I am going to focus on, of course, because actually we've had all of these in the last month come at us.

You can see here, of course, on 232, 201, and 301, if you look at this line that says, "Agency required to make findings," all of those ones have an agency that's tied to them that have to go do a report, and that's going to be important to know. It's the Section 122 and the 338s that can be very quick. There's no report needed. Always understanding that is really important. What has been happening? I resurrected this list, although tried to make it look cooler. Brenda informed me my font is too small, so just bear with me here. On the Section 232, this is listed in order of when these cases were initiated. Okay? You can see here, we've been checking down the list of the 232s. We have skipped over critical minerals, but pharmaceuticals went live.

The first part went live July 31st. They officially have closed the commercial aircraft one, and then we just got instructions last Friday, I think, for polysilicon, although it's planned for December 2026. If you're wondering when your case, if you have one of these and that's going to be highly impactful, you can kind of see what's happening here. Section 301. This is a little bit more all over the board, but there's a lot open, right? These are all ones that are formally open. If you Google "Section 301 open investigations," you'll see the page. They're all there. But we've had two of these go live in the last couple weeks. We had Brazil, and we had the forced labor one. Both of those just days apart. Then Section 201. Haven't seen an appearance of tariffs under that for a while.

I always say my fun fact is 201 was the original tariffs that came on during Trump 1.0. They were for washing machines and solar cells. There is your fun fact of the day. It is coming back to life with quartz surface products. That will be middle of August. It is actually a quota, so interesting twist. We have not seen that in a while. Then just in the last month or two, they also opened up a Section 201 on lamb meat. I am not quite sure the background on the lamb meat, but it is out there. Okay, so this is kind of an overall view. Let us look at what got implemented. Okay? I am going to hit. Usually we try to go a little deeper on this, but we kind of have to do an overall pass-by.