IMPORT TARIFFS - LATEST NEWS & UPDATES
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Clue in on what importers need to know now, what’s going on with rate changes authorized under the IEEPA, and if there’s an occasion when importers can avoid Section 301 tariffs altogether.
Remember to come back here for quick and easy updates as the dissension continues. I’ll keep you posted, so bookmark this article in your browser now.
As always, should you need additional guidance from a trusted professional, give us a call at (855) 912-0406. For now, let’s get this tariff talk tackled.
The Section 301 review conducted last year announced several tariff increases that would take place starting January 1st.
While the semiconductor increase was planned from the beginning, the addition of tungsten products, wafers, and polysilicon are recent changes. The USTR (Office of the U.S. Trade Representative) announced these in December 2024.
Let me refresh your memory regarding exclusion expirations. 164 exclusions that were granted in 2022 and later extended are set to expire May 31, 2025.
Input provided to the USTR prior to the May 31 expiration date has led to the same 164 exclusions to be extended until August 31, 2025. The 14 solar power manufacturing product descriptions that were added in September 2024 joins these.
While, exclusions for various machinery imports found under HS chapters 84 and 85 are still under consideration.
New tariffs, modified duties, and exclusion updates are enough to make any importer want to tear their own hair out.
But, you don’t have to…just contact our professional customs clearance experts online for help.
The new year brings with it a new (or returning) administration with the re-election of President Donald Trump. While there are no rapid changes to Section 301 tariffs themselves, other actions by the new President are still increasing various import costs, some of which have been authorized via the International Emergency Economic Powers Act.
On February 1, 2025, President Trump signed an executive order imposing an additional 10% ad valorem duty on imports from China. These tariffs will be in addition to the duties owed per Section 301.
No specific HTS list has been provided, so importers should assume that all entries intended for consumption in the US will be required to pay the additional duty. Unlike current Section 301 policies, these payments will not be eligible for duty-drawback.
Entries under Section 321, which qualify for duty-free status under the $800 threshold granted by de minimis were initially suspended as well. On February 7, this aspect of the executive order was temporarily lifted.
Because such shipments have become a major source of imports in the last two years, parcel handlers found themselves overwhelmed with how to collect all the duties. The lift on de minimis exemptions is expected to be temporary until uniform collection methods are in place. No specific timeline for this has been provided.
In response to this unilateral application of tariffs, China has announced counter tariff measures that will take effect Monday, February 10. They target specific American products, applying tariffs between 10% to 25% ad valorem. Currently, the following products will be impacted:
Further negotiations between China and the US may mitigate some or all of the responses, as they did in a similar situation when tariffs were imposed on Mexico and Canada. In the meantime, plan your import budget taking the tariff hikes into account.
Meanwhile, if you want to learn more about How Trump's Trade Policies May Impact International Trade, read all about it.
On March 4, 2025, the 10% ad valorem duty initially levied against products from China was raised to 20%, impacting all current products. Other measures initially introduced by the executive order from February also remain in effect.
As before, the 20% duty that importers are responsible for upon entry is additional to current Section 301 duties that remain in place.
The Trump administration raised the rate due to their dissatisfaction with China’s efforts to mitigate the entry of various illegal substances into the US, including fentanyl.
This was one of the original reasons the tariffs were issued in the first place.
The medical and healthcare industry, still coming to a new normal in a post-pandemic world, will also be affected by tariff increases. Thankfully, the list of such commodities experiencing a tariff hike in this sector is much shorter.
In April, a White House announcement solidified the plan to issue reciprocal tariffs impacting various nations, including China. After weeks of increasingly high retaliatory orders from both nations, an agreement was finally reached on May 12th, as each country agreed to certain concessions.
The agreement further clarified how commercial tariffs will be adjusted, as well as how fees on low-value personal shipments were to be changed.
If you’re a personal importer seeking information on low-value shipments, visit our article Section 321 Shipments: De Minimus and Duty-Free Imports.
The US’ country-specific rate on imports from China is now set at 34% ad valorem, with a 90-day pause to further lower it to 10% starting on May 14, 2025. If you need more information on this, call our team at (855) 912-0406.
The short answer, is yes and no. Here’s why…as discussed earlier, 164 exclusions were extended, new ones were added, and others are being considered.
There’s hope around every corner.
As of May 2, 2025 products from China will no longer be allowed to use the de minimis provision to bypass Section 301 tariffs. The executive order signed by President Trump on February 1, 2025 suspended its use indefinitely, or until said order is removed.
A surcharge on low-value shipments is now in place. The charge depends on whether the import is entering as commercial freight or through international postal services.
For the details on the surcharge, visit Section 321 Shipments: De Minimis and Duty-Free Imports.
Now, should the order be removed in the future, be aware that the rules previously surrounding Section 301 shipments are likely to change. So it’s important that you stay tuned here for continuous updates and how they may impact your business.
On February 4, 2025, importers were required to pay an additional 10% tariff applied by the recent presidential executive order on Chinese products. The administration specified that it would also apply to Hong Kong products despite their exports having a unique ISO code.
However, on March 4, 2025, the amount was raised to 20%. Despite needing to pay this tariff, products with a Hong Kong ISO code will remain exempt from duties under Section 301.
Who’s winning in this supply chain standoff? You could be if you make sure you’re:
Circumvent customs and import issues by quickly contacting the pros online.
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