New U.S. Tariffs on Products Manufactured in China, Hong Kong , Mexico, & Canada (UPDATE)

🚨 April 4, 2025 Update: Important Notes to the Regulatory Changes in the United States 🚨

On April 2, 2025, U.S. President Trump signed executive orders introducing new tariffs and adjusting duty-free de minimis treatments. Here’s a breakdown of the key updates:

1. New 10% Tariff on All Imports (Effective April 5, 2025)

Starting at 12:01 a.m. EDT on April 5, 2025, a 10% tariff will apply to all products made in any country or territory, regardless of where they are shipped from. This fee will be added on top of any existing duties, taxes, or fees already in place.

2. Increased Tariffs for 60 Countries (Effective April 9, 2025)

From 12:01 a.m. EDT on April 9, 2025, tariffs on certain products from 60 countries and territories will increase from the standard 10% to higher rates listed in the Reciprocal Tariff Sheet. The exact calculation methods for these tariffs are yet to be provided.

• An additional 34% tariff will be imposed on Chinese-manufactured products. This applies on top of existing tariffs (such as the 10% tariff from April 5) and will significantly impact pricing for those goods.

3. Removal of De Minimis Treatment for China and Hong Kong (Effective May 2, 2025)

Beginning at 12:01 a.m. EDT on May 2, 2025, the U.S. will eliminate duty-free de minimis treatment for all products with a country of origin from China and Hong Kong, regardless of the shipment’s origin.

4. De Minimis Rule Still Applies to Other Countries

For now, the de minimis exemption remains available for the rest of the world. This means products valued under $800 can still enter the U.S. duty-free unless the Secretary of Commerce notifies the President that suitable systems are in place to process and collect tariffs effectively.

How This Affects International Shipping

• Products from any country, including Australia, will now have an additional 10% tariff, starting April 5.
• Certain countries will see higher tariffs (above 10%) beginning April 9.
• Goods manufactured in China and Hong Kong will lose their duty-free status under the de minimis rule, effective May 2.

March 6, 2025 Update: Tariffs on Imports from Canada and Mexico Postponed

The U.S. has postponed the 25% tariffs on certain imports from Canada and Mexico, delaying enforcement until early April amid economic concerns.

March 4, 2025 Update: U.S. Tariffs on Products Manufactured in Mainland China, Hong Kong, Canada, and Mexico

The U.S. government has resumed tariffs on certain products based on their country of manufacture. If a product was made in Mainland China, Hong Kong, Canada, or Mexico, it is now subject to these tariffs, even if it is shipped from another country like Australia. Below are the key details:

• Mainland China & Hong Kong: An additional 10% tariff will be imposed on products valued over $800 (in customs value), unless they qualify for de minimis treatment. This brings the total additional tariff to 20% on top of existing duties and taxes before February 1, 2025.
• Canada & Mexico: A 25% additional tariff will be applied to products from these countries.
• Canada (Oil): A 10% tariff will be imposed on Canadian oil.

The duty-free de minimis treatment (which allows low-value goods to enter the U.S. duty-free) for products manufactured in Mainland China, Hong Kong, Canada, and Mexico remains in place temporarily. However, it will be removed once "adequate systems are in place to fully and expeditiously process and collect tariff revenue.

If you ship goods manufactured in Mainland China, Hong Kong, Canada, or Mexico, you must provide the 10-digit H.S. code and the Manufacturer Identification Code (MID) for eligible shipments to comply with these regulations.

These tariffs may impact shipping costs and pricing for affected goods, so we recommend reviewing your supply chain and tariff obligations accordingly.

On 1 February 2025, U.S. President Trump signed an Executive Order (EO) imposing additional tariffs on products with a country of origin (COO) of China and Hong Kong. These measures, established under the International Emergency Economic Powers Act (IEEPA), took effect on 4 February 2025, at 12:01 a.m. Eastern Time.

The Executive Order also removes the De Minimis (DM) exemption for affected products, meaning that all shipments from China and Hong Kong—regardless of value—will now be subject to import duties and customs processing. Previously, shipments valued under $800 USD could enter the U.S. duty-free under the De Minimis rule, but this is no longer the case. Additionally, businesses will no longer be able to claim duty refunds on these tariffs. While this EO focuses on China and Hong Kong, President Trump also issued two additional orders imposing tariffs on goods originating from Canada and Mexico. However, these provisions have been postponed until 4 March 2025, delaying their immediate impact on trade.

How This Affects International Shipping

The new tariff structure and De Minimis suspension will have a major impact on Australian businesses that send products manufactured in China and Hong Kong to the U.S., regardless of where they are shipped from. Here’s what you need to know:

1. Higher Costs for Products Manufactured in China and Hong Kong

These new tariffs mean that businesses importing products that were manufactured in China or Hong Kong — regardless of where they are shipped from, even if they are sent from Australia — will face increased costs. This will affect retailers, manufacturers, and ecommerce businesses, as tariffs will apply based on the product’s country of origin rather than its shipping location. As a result, total landed costs will rise, potentially leading to higher prices for customers.

2. De Minimis Exemption Removed for Products Manufactured in China and Hong Kong (Regardless of Shipping Location)

Previously, businesses could send goods valued under $800 USD without duties under the De Minimis rule. That’s no longer the case. Now, all products that were manufactured in China or Hong Kong will need to go through formal or informal customs entry and will be subject to duties.

These products will be taxed based on the Harmonized Tariff Schedule of the United States (HTSUS), which includes up to three different types of duties:

• General duty rate: 2.5% to 6%
• Section 301 tariffs: 7.5% to 100%
• New IEEPA tariffs: 10%

Please note: On the Interparcel platform, the HTSUS (Harmonized Tariff Schedule of the United States) is labeled as HS Code (Harmonized System Code) when adding it to your commercial invoice.

3. No More Duty Refunds (Drawbacks)

Previously, businesses could recover some duties on re-exported goods through a duty drawback program. This is no longer an option for products affected by these new tariffs, which could have a significant impact on companies using China or Hong Kong as manufacturing hubs.

4. Some Products Are Exempt

Certain products manufactured in China and Hong Kong will not face the new IEEPA tariffs. However, they must still go through formal or informal entry processing under the HTSUS system. The exemptions include:

• Donations
• Informational materials (e.g., books, films, posters, CDs, and similar items)

5. Expect Delays at U.S. Customs

With the new tariffs and regulations, expect longer customs clearance times. More shipments will require detailed inspections, and businesses should prepare for potential delays as U.S. customs officials implement these new policies.

6. New Documentation Requirements

Businesses shipping to the U.S. must now provide detailed commercial invoice data to help streamline customs clearance. This includes:

• Accurate product descriptions
• HTSUS classification (10-digit code)
• Country of origin (where the product was made)
• Tax ID/Social Security Number of the recipient (for shipments over $250)

Summary of Changes for Shipments from China & Hong Kong

What Businesses Should Do Now

To navigate these changes, businesses should consider the following steps:

• Review Your Supply Chain: If you rely on imports from China or Hong Kong, explore alternative sourcing options to reduce costs.
• Recalculate Pricing: With new tariffs in place, reassess your pricing model and consider strategies to absorb or pass on additional costs.
• Ensure Compliance: Ensure shipments meet new customs documentation requirements to prevent delays and avoid fines.
• Stay Informed: The situation is evolving, and businesses should regularly check for updates from government agencies and logistics providers.

The new tariffs and De Minimis rule changes mark a major shift in U.S. trade policy, impacting importers, exporters, and logistics providers worldwide. Australian businesses that send to the U.S. should take immediate steps to understand these changes, adjust their shipping strategies, and prepare for potential cost increases.

Need to Look Up U.S. Tariffs? Here’s the Official Government Resource

If you’re shipping goods to the United States—whether occasionally or at scale—understanding tariffs is non-negotiable. But where do you go to find the official tariff rates?

The Harmonized Tariff Schedule of the United States (HTSUS), is available at hts.usitc.gov and https://ustr.gov/. It’s the U.S. government’s central database for all import tariff rates and product classifications, maintained by the U.S. International Trade Commission (USITC).

Whether you're trying to calculate duties for your next shipment, classify your products correctly, or simply stay compliant, this site is your go-to. It lists every tariff code, rate, and product description used by U.S. Customs—and it's updated regularly, so you’re never left guessing.

What can you use it for?

• Look up tariff codes (HS Codes)
• Check the current duty rates for any product
• Search by keyword, product description, or code
• Download the full tariff schedule in PDF or Excel format

If you have any questions about how these changes impact your shipments to the U.S., our customer support team is here to help. Contact us for expert guidance on navigating these new regulations and ensuring smooth international shipping.