Go-To Guide:

  • President Donald Trump has imposed new tariffs on imports from China, effective Feb. 4, 2025, adding a 10% tariff on Chinese goods in addition to existing duties.
  • Shipments under $800, known as “de minimis” shipments, will no longer be duty-free if they originate from China.
  • Duty drawback refunds for importers and exporters will not be allowed on the additional 10% tariffs.
  • Companies are advised to review supply chains and confirm the origin, classification, and valuation of imported products, as well as revisit purchase agreements and incoterms (international commercial terms) to manage tariff responsibilities.
  • China has announced tariffs on certain U.S. imported products in retaliation for the U.S. tariffs.
  • President Trump had proposed an additional 25% tariff on goods from Mexico and Canada, also in addition to existing duties. However, on Feb. 3, 2025, after discussions with the Mexican and Canadian leaders, both proposals have been paused for 30 days.
  • Canada had already announced its retaliation with a 25% tariff on certain U.S. exports and was offering an exclusion process, while retaliation plans from Mexico had not yet been announced.
  • The dynamic nature of trade policy developments under the Trump administration, including the use of tariffs (as well as pauses or potential exclusions yet to be announced), require agility and flexibility in managing supply chain decisions.

On Feb. 1, 2025, President Trump imposed an additional 10% tariff on products of China imported into the United States, effective Feb. 4, 2025. Products in transit as of Feb. 1, 2025, are exempt from the new tariffs so long as they arrive in the United States by March 7, 2025, at 10:01 a.m. These tariffs are in addition to the general duties for imported merchandise and the Section 301 duties already imposed on most products of China. In retaliation, China has imposed a 15% tariff on liquified natural gas and coal and 10% on crude oil, farm equipment, and certain “large engine” autos. China’s countermeasures are set to take effect Feb. 10.

Pursuant to the International Emergency Economic Powers Act (IEEPA), National Emergencies Act (50 U.S.C. 1601 et seq.), Section 604 of the Trade Act of 1974 (19 U.S.C. 2483), and 3 U.S.C. 301, and referencing the “influx of synthetic opioids” from China, President Trump imposed the supplemental duties in an executive order[1] that included all goods from China. Unlike under the first Trump administration, to date, no exclusion process has been announced that would enable importers to apply for specific exclusions to the additional tariffs.

Read the full GT Alert