Significant developments have unfolded in international trade relations, particularly between the U.S. and China. The U.S. administration placed a 90-day pause on most broad tariffs, effective April 10, aiming to renegotiate trade deals. While most countries continue with a 10% tariff, Chinese imports were raised to 125% escalating trade tensions. U.S. Customs and Border Protection released CSMS updates with guidance on the increased rate for China and exceptions.

In addition the U.S. administration modified the executive order for the De Minimis for China and Hong Kong that will go into effect May 2, 2025. All non-postal shipments valued at $800 or less from China and Hong Kong to U.S. will now require full customs entry and will be subject to all applicable duties. Changes to duties include:

• 120% (instead of 90%) of the value of the package for goods entered for use on or after 5/2/25 (12:01 am ET).
• An additional $100 (instead of $75) per postal item for goods entered for use on or after 5/2/25 (12:01 am ET) and before 6/1/25 (12:01 am ET).
• An additional $200 (instead of $150) per postal item for goods entered for use on or after 6/1/25 (12:01 am ET).

In response, today China announced that it will raise tariffs on U.S. goods from 84% to 125%. Chinese tariffs will impact goods like soybeans, semiconductors and vaccines, while top imports of Chinese goods to the U.S. include smart phones, computers and toys.

The U.S. administration also issued an executive order this week, aimed at strengthening the U.S. maritime industry. The plan seeks to boost domestic shipbuilding, expand the U.S. Merchant Marine Academy, and grow the U.S. flag fleet to increase seafaring job opportunities. It also proposes creating “Maritime Prosperity Zones” to attract investment to coastal communities and establishing a Maritime Security Trust Fund, though funding details remain unclear. While the order directs a review of port charges on Chinese-built or operated ships, it stops short of detailing the administration’s proposed fees, some of which could reach up to $1.5 million per vessel.

We understand that the recent tariff changes can be confusing, as things are evolving quickly. These regulations are subject to change so please reach out to your Mallory Alexander representative or our M-PACT team for further assistance with calculating tariffs by HTS code.