New Tariffs and the End of De Minimis

New Tariffs and the End of De Minimis

Apr 15, 2025 | , , , , , , , , , , , , , , , , , , ,

On 2 April 2025, President Donald J. Trump announced sweeping new tariffs, targeting approximately 60 countries, with China singled out for the most severe action. In response to retaliatory tariffs from Beijing, the United States escalated its own duties, ultimately imposing a 125% tariff on all imports from China, Hong Kong, and Macau, in addition to previously existing tariffs.

While the White House has not made extensive public statements on the topic of de minimis imports – the long-standing policy allowing goods valued under $800 to enter the U.S. duty-free – key guidance released on 2 and 8 April confirms that this exemption will soon be withdrawn for goods from China and Hong Kong.

Escalation of U.S. Tariffs on China
The first of the new tariffs took effect on 4 February 2025, when a 10% duty was introduced on top of the existing Section 301 tariffs. This was increased to 20% on 4 March, and then, on 2 April, President Trump announced a 34% reciprocal tariff, which included a new 10% baseline tariff applicable to all countries starting 5 April.

However, after China retaliated with increased tariffs on U.S. exports, the White House raised the China-specific tariff to 84% on 8 April, and then to a staggering 125% on 9 April. 

This final rate became effective at 00:01 ET on 10 April. These duties are stackable, meaning that in many cases, importers will face a total duty burden of around 145%, factoring in earlier Section 301 tariffs and the new reciprocal tariffs.

De Minimis Policy Changes for Chinese Imports
The de minimis exemption, which allows shipments valued at or below $800 USD to enter the United States without duties or import taxes, is being formally eliminated for goods originating from China and Hong Kong, effective 2 May 2025 at 00:01 ET.

This change follows a period of confusion that began on 1 February, when the White House first announced the end of de minimis for Chinese-origin shipments. 

Implementation on 4 February resulted in significant logistical disruptions, including a temporary halt in parcel acceptance by the United States Postal Service (USPS). The policy was reversed just one day later, on 5 February, to give U.S. authorities time to prepare for full enforcement.

Now, with updated executive orders on 8 April and 9 April, the de minimis exemption will definitively end for China and Hong Kong on 2 May. The administration is also considering extending these rules to Macau.

Starting on that date, goods valued under $800 from China and Hong Kong will be subject to a duty calculated at 120% of the item’s value, and a postal fee of $100 per package. 

The postal fee will rise to $200 on 1 June 2025. These amounts were increased from earlier planned levels of 30% duty and $25/$50 postal fees through the two April executive orders.

Additionally, the exemption will no longer apply to low-value goods shipped through couriers or freight companies—not just postal shipments—ensuring broad application across all shipping channels.

What’s Next?
While the de minimis threshold remains in place for most other countries, both the White House and members of Congress are reportedly reviewing broader changes to this policy. 

For now, the key changes apply specifically to China and Hong Kong, but the political momentum suggests the U.S. may tighten or eliminate de minimis privileges more broadly in the near future.

TIMELINE: Tariffs on China
1 Feb Trump announces elimination of de minimis for China (initially).
4 Feb 10% tariff imposed on Chinese and Hong Kong imports. No drawback or exclusion process.
5 Feb De minimis reinstated temporarily due to USPS overload and customs issues.
4 Mar Tariff on China doubled to 20%.
2 Apr Trump announces 34% reciprocal tariff on 60 countries, starting with China.
5 Apr New baseline 10% reciprocal tariff applies to all countries (excl China).
8 Apr After China retaliates, U.S. increases China tariff to 84%; raises de minimis duty to 90%.
9 Apr Tariff on China raised to 125%. De minimis duty rises to 120%.
10 Apr 125% China tariff becomes effective.
2 May End of de minimis for China and Hong Kong. New duties and postal fees apply.
1 June Postal fee increases for low-value shipments from China.

If you’d like to review any potential impact of tariffs on your supply chain, assess your exposure, or explore strategic options, we’re here to help. Metro is well-placed to support you, backed by our expanded US footprint and strong focus on North American trade flows.

Make informed decisions with Metro’s compliance and regulatory insights. EMAIL Andrew Smith, Managing Director.

Tariff turmoil threatens US importers as China trade takes a hit

Tariff turmoil threatens US importers as China trade takes a hit

Apr 10, 2025 | , , , , , , , , , , , , , , , , , , , , , , ,

After weeks of speculation, US President Donald Trump has sharply escalated tariffs on Chinese goods to 125%, while simultaneously offering a 90-day reprieve to other trading partners.

The baseline tariff of 10% applies to imports from all countries other than China, including the EU. This rate applies in addition to any existing tariffs, with certain exemptions in place for key sectors such as semiconductors, copper, lumber, pharmaceuticals, bullion, energy, and minerals not found domestically.

Meanwhile, the separate 25% tariff on automobiles and auto parts, introduced last month, remains in effect.

Tariffs of 25% also continue to apply to steel and aluminium imports across the board, alongside the existing 25% duty on goods from Mexico and Canada that do not comply with USMCA free trade agreement terms.

US retailers and importers are reacting quickly. Delaying or cancelling orders and turning to existing inventory while they wait for clarity. According to the National Retail Federation (NRF), the outlook for imports is bleak, with volumes expected to fall sharply in the coming months.

Data from Dun & Bradstreet shows that just 225,900 TEUs of US imports from Asia were booked in the past seven days, down from around 633,000 TEUs the week before. Purchase orders for fall and holiday merchandise are also being postponed by 30 to 60 days.

The NRF’s Global Port Tracker estimates a 20% year-on-year drop in US imports for the second half of 2025. June volumes are forecast to be the lowest since early 2023, with the downturn starting as soon as May. While the 90-day reprieve on non-China tariffs may cushion the blow, the wide disparity in duty rates between China and other Asian nations is already influencing global sourcing decisions.

With tariffs now exceeding 150% on some goods, many Chinese-made products are no longer viable in the US market. By contrast, the impact on goods from countries facing lower tariffs is less severe. A 10% duty typically translates to a retail price increase of around 3%, making these supply chains more resilient in the near term. As a result, sourcing is shifting rapidly towards countries like Vietnam and Taiwan, where the tariff environment is more favourable.

Despite the disruption, shipping lines remain cautiously optimistic. Many believe that once the tariff situation stabilises import volumes could rebound strongly during the peak late summer to autumn season.

Meanwhile, the administration appears to be refining its approach on another controversial measure. The proposed port fees of up to $1.5 million on Chinese-built or operated ships calling at US ports. Speaking before the Senate Finance Committee, USTR Jamieson Greer sought to ease concerns, indicating adjustments are being made to avoid damaging American export competitiveness.

“The president will look very carefully to make sure we have the right amount of time and the right incentives to create shipbuilding here without impacting our commodity exports,” Greer said.

Meanwhile, pressure is building on US Customs and Border Protection (CBP). The increased complexity of tariff codes and documentation is creating more manual processing work, and staffing levels have not risen in line with demand. There is growing concern that CBP could be overwhelmed if volumes rise suddenly or new duties are introduced.

For now, the only certainty is continued volatility. Trade flows are being redrawn, sourcing strategies are in flux, and the longer-term consequences of this tariff upheaval are only just beginning to surface.

We will share further updates as new details emerge, particularly around the EU and shifts in UK trade policy.

If you’d like to review any potential impact on your supply chain, assess your exposure, or explore strategic options, we’re here to help. Metro is well-placed to support you, backed by our expanded US footprint and strong focus on North American trade flows.

If we can help, or simply answer your questions, contact us now for prompt and tailored advice.

US Tariff Developments and Global Trade Reactions

US Tariff Developments and Global Trade Reactions

Apr 9, 2025 | , , , , , , , , , , , , , , , , , , , , , , , ,

Further to our recent update on the major changes to US tariffs (link), the global trade landscape remains highly fluid, with the situation evolving rapidly.

Last Wednesday, 2nd April, President Donald Trump announced a comprehensive tariff strategy, imposing a universal 10% tariff on all imported goods, effective from the 5th April.

Additionally, as of today, 9th April, a second wave of higher “reciprocal” tariffs has been implemented, targeting specific countries with rates ranging from 11% to 50%, based on perceived trade imbalances and barriers. Notably, China which now faces a tariff rate of 104% on its exports to the US, combining previous and new duties.

The UK, Australia, Indonesia, Singapore, Vietnam, and Taiwan have confirmed they will not introduce countermeasures at this stage. Notably, both Vietnam and Taiwan have expressed willingness to negotiate with the US and explore zero-tariff agreements.

In contrast, China responded with retaliatory tariffs of up to 34% on US goods, which has seen President Trump follow through with his threatened escalation of an additional 50% duty on Chinese imports. As a result, US importers now face an unprecedented degree of uncertainty around landed costs.

The European Union has proposed a zero-tariff arrangement on autos and industrial goods, which was rejected by the US. So far, the EU’s potential response appears limited to steel and aluminium, though speculation persists around broader negotiations and potential shifts in trade policy.

This environment puts US importers in a difficult position: ship now and risk overpaying if tariffs are reversed, or delay and risk facing even higher costs if further duties are imposed. Many are opting to pause shipments where possible, disrupting vessel utilisation, bookings, and spot market rates.

Early indicators suggest the impact on global logistics is already being felt. Sea freight container bookings into the US from China have dropped a massive 67% in the past 7 days compared to the week prior, with export bookings also down 40%. If these figures are anywhere near accurate, this marks an extremely large and immediate disruption to trade flows into the US.

If this slowdown continues, significant blank sailings from the carriers are inevitable, and signs of this are already emerging. Yesterday, Ocean Network Express (ONE) announced that the Premier Alliance PN4 Pacific service, scheduled to begin in May, has been suspended until further notice—an early indication of broader cancellations to come.

There are several mechanisms that can be utilised to temporarily avoid duties for exports into the USA including Free/ Foreign Trade Zones, customs regimes, bonded facilities, temporary import bonds (TIB’s), carnets and more. There are options to carry on shipping goods to USA and not clear them until it is absolutely clear whether commodity tariff rates will be reduced or withdrawn as, or if, deals are agreed between countries.

From an objective standpoint, it remains unclear what concessions the US is seeking in exchange for easing these tariffs, particularly since the justification of “tariffs imposed on the US” lacks clarity in many cases.

For shippers and carriers the coming days and weeks will require vigilance and adaptability. The tariff landscape may shift dramatically and without warning, both upward and downward.

We continue to monitor developments closely and will issue further updates as more information becomes available, particularly concerning potential EU countermeasures and UK trade policy responses.

If you would like to review your specific supply chain impact, assess your exposure, or explore strategic alternatives, please don’t hesitate to get in touch. Metro is well-positioned to support you, bolstered by our expanded US presence and strong focus on North American trade flows.

Expect further insights in the coming days as the situation unfolds and if you have any questions please give me a call, or drop a message, and we will ensure that you receive immediate attention and advice.

Major US Tariff Changes

Major US Tariff Changes

Apr 3, 2025 | , , , , , , , , , , , , , , , , , ,

On 2 April , President Trump unveiled sweeping new tariffs that will have global implications for international trade. 

These measures mark the most significant restructuring of U.S. tariff policy in decades and they will impact many businesses, irrespective of whether they trade with the United States.

Key Tariff Measures

  • Universal Tariff: A baseline 10% tariff will now apply to all imported goods entering the United States, effective immediately. The UK has been hit with this baseline.
  • Targeted Tariffs: Elevated tariffs have been introduced for a wide range of countries, including:
    • China: 34% (bringing total duties to 54%)
    • Vietnam: 46%
    • Cambodia: 49%
    • Bangladesh: 37%
    • European Union: 20%
    • Japan: 24%
    • South Korea: 25%
    • India, Indonesia, Taiwan and others: 26–36%
  • End of de minimis: The $800 duty-free threshold for China imports into the U.S. will be eliminated from May 2, disrupting cross-border eCommerce flows.

Implications for UK Importers and Exporters

Many production hubs like Vietnam, Cambodia, and Bangladesh now face tariffs approaching or exceeding 40%. UK brands that re-export to the U.S. from Asia could see significant cost hikes and supply chain disruptions.

U.S. importers are expected to face increased landed costs and margin pressure. Brands may be forced to raise prices or renegotiate terms with suppliers, especially as cost-conscious consumers in both the U.S. and UK continue to feel inflationary pressures.

Even UK-based businesses that manufacture domestically could be affected due to their reliance on imported raw materials, which could now become more expensive due to universal tariffs on U.S. imports.

While automotive was less explicitly detailed in last night’s announcement, the baseline tariff applies to all goods and a separate 25% duty on imported automobiles (previously announced) remains in place. This could impact UK automotive component manufacturers that export to the U.S. and face increased costs on U.S.-sourced parts for use in European production.

The sector is also exposed to the broader risk of retaliatory tariffs, particularly from the EU and Asian economies, which may further complicate trade flows and cost structures.

European Response

While the UK is pausing reaction, the European Commission has already indicated a strong and coordinated response is likely. While details of retaliatory measures are still unfolding, the EU is expected to pursue countermeasures, which could further disrupt transatlantic supply chains, including UK firms trading with both blocs.

There’s also growing concern about goods being diverted into UK and European markets as exporters from Asia and other regions look for alternative markets in response to the new U.S. tariffs. This could lead to ‘dumping’ and potential price pressure, especially in fashion and fast-moving consumer goods.

Putting the Tariffs in Perspective

  • Not always an additive cost:
  • The new tariffs replace existing duties rather than stacking on top of them. For example, if a product currently has a 5% duty and the new universal rate is 10%, the increase is 5%, not an additional 10%. This makes the change less severe than it might first appear.
  • Customs regimes can help: Tools such as Outward Processing Relief (OPR) and Inward Processing Relief (IPR) can help businesses avoid customs duties on goods that cross borders multiple times for processing.
  • Low-cost countries still competitive: Despite increased tariffs, production in countries like Vietnam and Bangladesh may still be more cost-effective than U.S. manufacturing—though consumers are likely to see price increases.
  • No substitute for specialised goods: Products under copyright, or those requiring specialised manufacturing, cannot easily be relocated. In these cases, additional costs will be passed directly to consumers.
  • Opportunities for the UK: Low-duty countries such as the UK could become more attractive as manufacturing bases for goods destined for the U.S. This may stimulate local manufacturing activity.
  • Are these changes permanent? It’s too early to tell. The tariffs could be temporary, as demonstrated by reversals in January 2025 involving Canada and Mexico. The long-term outcome will depend on how events unfold following this decision by the Trump administration.

What This Means for Your Business

We recommend that clients in affected sectors:

  • Reassess Supply Chains: Identify exposure to high-tariff countries, especially if goods transit through the U.S. or rely on U.S.-based components or partners.
  • Prepare for Cost Changes: Anticipate adjustments to landed costs and pricing strategies. Engage early with suppliers to explore cost-sharing or alternative sourcing.
  • Monitor for Retaliation: Be alert to EU and UK policy shifts that could either mirror or respond to the U.S. measures.
  • Watch for Dumping Risks: Be aware of the potential for market saturation as exporters redirect goods, especially in fashion, household goods, and footwear.

We are closely monitoring the situation and will keep you updated as further developments emerge—particularly in relation to EU countermeasures and UK trade policy adjustments.

Please don’t hesitate to reach out if you’d like to discuss your specific supply chain, explore alternative strategies, or assess your risk exposure.

Metro is well positioned to support you, especially through our recent U.S. expansion and our strong North American trade focus. Expect further updates in the days and weeks ahead as more details become available.

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