The U.S. Customs reported a malfunction in the tariff system, resulting in no tariffs being collected, and U.S. stocks have seen an expanded increase

The U.S. Customs system experienced a "glitch," leading to unprecedented chaos for U.S. importers, but it has provided a breather for investors.

According to reports from CCTV, on Friday local time, the U.S. Customs and Border Protection (CBP) issued an alert notifying users of a malfunction in the system—codes used by shippers to exempt goods from entry have become invalid. The affected shipments include all trade goods from countries currently under the 90-day tariff suspension period implemented by the Trump administration.

Typically, when importers pay freight charges, they must submit both a release order and financial documents. To maintain the flow of goods, U.S. Customs has suggested submitting the release order first and providing the financial documents later once the issue is resolved, which means that the U.S. government has not yet imposed tariffs.

This may not just be a technical issue, but rather a strategic buffer for policy adjustments. The sudden "glitch" has led to a suspension of tariff data processing, which conveniently gives key stakeholders—clearinghouses, freight forwarding companies, the U.S. Treasury, and Customs—the opportunity to pause and reprice and reposition before implementing new tax rates. As of the time of publication, the S&P 500 index rose nearly 1.8%, the Dow Jones increased by 655 points, a gain of 1.66%, and the Nasdaq rose by over 300 points, a gain of 1.89%.

The "glitch" may be a strategic smokescreen: not just a technical issue

This delay in tariff collection may provide a buffer period for the market, alleviating the immediate shocks that a trade war could bring.

Dewardric McNeal, Managing Director and Senior Policy Analyst at Longview Global, which focuses on international trade, diplomacy, and defense, stated that glitches do happen, but the timing is unfortunate and will raise more questions about whether Customs can keep up with the pace of tariff adjustments.

Analyst Dewardric McNeal stated:

Whether you agree with this policy or not, you have to ask, do we have the capacity to implement it so quickly? This glitch may indicate that we need more time. It seems strange for a glitch to occur at this time. This adds to the policy confusion for policymakers.

Some institutional analysts suggest that this Customs glitch may be far more than just a software failure. The so-called "glitch" may be a strategic smokescreen, not aimed at fixing the problematic system, but rather buying time during a significant adjustment period for global trade and capital flows that is high-risk.

Chaos from Trump's tariff policy leads to corporate dilemmas

However, regardless, the system's malfunction, combined with Trump's inconsistent statements and executive orders regarding tariffs, has led to chaotic execution of tariff policies, exposing complexities and uncertainties on both technical and strategic decision-making levels. This state of confusion may continue to affect investor confidence and corporate decision-making, with customs brokers facing daunting tasks and businesses hindered in their operations and decisions Despite Trump repeatedly stating that tariffs are in effect and being imposed, including the newly added global 10% reciprocal tariffs, American shippers claim they have not been charged higher tariffs, even for containers that just arrived yesterday. Jarred Varanelli, Vice President of Sales at logistics company Savino Del Bene, stated:

Trump's comments on social media regarding when tariffs would start are somewhat confusing compared to the content of the executive order. Social media posts do not have legal effect on the issues of tariff suspension and increase. With regulations constantly changing, all customs brokers in our industry face a daunting task.

Rick Woldenberg, CEO of Learning Resources, expressed a similar viewpoint:

I cannot run my business based on social media posts, which makes it difficult for me to make business decisions. I am no longer planning for growth but discussing how to survive. This trade policy will stifle me and hundreds of small businesses like mine, and we may have to lay off employees.

The company originally planned to expand this year by constructing new buildings, but he has now paused the expansion plans and is reviewing the company's financial situation to find areas to cut.

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