Important Update: The $800 De Minimis Exemption has been temporarily reinstated. which allowed packages worth less than $800 to enter the country duty-free, effective February 8, 2025. This change will remain in effect until U.S. Customs completes the necessary system preparations for the rapid clearance and taxation of low-value items.
President Trump has implemented tariffs on goods imported from China, which are already in effect. In response, China has imposed similar charges on some U.S. products. Additionally, Trump has threatened to impose similar charges on goods imported from Canada and Mexico. However, the plan for Canada and Mexico has been delayed for 30 days, as both countries have agreed to improve border security.
For now, the tariffs on Chinese goods are already in effect. Specifically, the maritime exemption deadline is for goods shipped before 12:01 AM Eastern Time on February 1, 2025. For air freight, the T86 tariff applies to goods arriving in the U.S. after 12:01 AM Eastern Time on February 4, 2025.
If you’re eager to learn more about the tariffs imposed by Trump and the potential impact on your orders from China, we’ve got you covered in this ultimate guide.
Trump’s New Tariffs on China, Canada and Mexico
Based on Trump’s newly imposed tariffs, a tariff war has begun between China and the US, whereas tariffs on Canada and Mexico are left on hold for now. Here’s an overview of the imposed tariffs and the tariffs imposed in return.
China
On February 4, a new tariff, a 10% charge on all the goods imported from China to the US, was made effective. China has responded with a 15% tariff on US liquified natural gas products and coal, starting from February 10. Another 10% tariff was applied to agricultural machinery, crude oil, and large-engine cars.
Canada
According to the Canadian Prime Minister Justin Trudeau, Trump had proposed a 25% tariff on Canadian goods. Though the tariffs were supposed to go into effect starting Tuesday, they are delayed for at least 30 days while both countries work together to make things work. In return for the tariff delay, Trudeau has halted the retaliatory 25% tariffs on 155bn Canadian dollars’ worth ($107bn; £86bn) of US imports.
Moreover, Canada plans to implement a $1.3bn border plan for adding new choppers, technology, and personnel to the border to improve security and halt the flow of fentanyl.
Mexico
Trump has also delayed the proposed 25% tariff on Mexican goods for a month. In return, Mexico’s President Claudia Sheinbaum has agreed to send 10,000 National Guard members to the US-Mexican borders with the aim of preventing drug trafficking, especially fentanyl.
10% Additional Tariff on Goods Shipped from China
The new 10% tariff has significantly increased the costs for importers. The worst part about this tariff is that it applies presumptively to Chinese goods classified under all provisions of the Harmonized Tariff Schedule of the United States. However, there are some exemptions, such as the belongings of the person arriving in the United States.
The $800 De Minimis Exemption is Cancelled!
Previously, the US allowed individual shipments (under product lines subject to Section 201, 232, or 301) worth under $800 to enter the US without any duties under the De Minimis Exemption. With the implementation of the new tariff, this exemption has been revoked. This means all shipments, no matter what their worth, are subject to tariffs, documentation, requirements, and customs scrutiny.
Changes After the New Rules in 2025: Before & After Comparison
The recent changes in U.S. import regulations have significantly impacted the importation process. Here’s a comparative overview of the key differences before and after the policy updates:
| Category | Before | After |
| Tariff Status | All goods valued under $800 were duty-free. | Goods under section 301/232/201 are no longer duty-free. |
| Documentation | Simple documentation was requested from importers. | Every import must include 10-digit HTS codes, country of origin, and selling platform. |
| Customs Clearance Model | T86 free duty clearance was applied for small packages. | T11 clearance applies for B2C shipments under $2,500, with no duty exemptions (DDP required). |
| Custom Process | Simple. | A dual-track system featuring basic and enhanced clearance procedures is introduced. |
| Customs Clearance Speed | Quick and efficient processing. | Slow and strict due to increased scrutiny and documentation requirements. |
| Customs Clearance Fee | $0.5 per parcel under T86 simplified customs clearance. | $2.9 per parcel with T11 standard customs clearance. |
How to Calculate the New Tariffs on my Product?
Wondering how to calculate the new tariff on your products? Use this formula:
New total tax = Product value × (General tax rate + 301/ 201/ 232 tariff rate + 10% Additional Tariff)
For basic information, you can rely on these resources:
| Section | Affected Categories |
| Section 301 | Electronics, Machinery, Auto Parts, Chemicals, Medical Devices, Textiles, Furniture, Plastic Products |
| Section 201 | Solar Panels, Solar Cells, Washing Machines |
| Section 232 | Steel, Aluminum, Steel Products, Aluminum Products |
General tax rate lookup:HTS Tariff Database
Section 301 tax rate lookup:USTR Section 301 List
Let’s now perform assumptive calculations to improve your understanding. Assuming that women’s woven pants (HS Code 6204690310) have a 28.6% general tariff, 7.5% section 301 tariff, and 10% additional tariff. This will result in:
Total Tariff Rate: 28.6%+7.5%+10%=46.1%
What to do After Trump’s Tariffs?
After the implementation of new tariffs, every business owner or importer must take into consideration the following measures:
Adjust product prices: revaluate your pricing structure to accommodate the increased tax and shipping cost, ensuring profitability.
Tariff engineering: modify your product design and material composition to qualify for a more favorable HTS classification with lower tariff rates.
Partly shift supply chain to other countries: consider diversifying sourcing to Southeast Asian countries or Mexico, where tariffs may be lower. However, if you’re a small or mid-sized business, transitioning factories can be costly and complex. Be sure to ensure that all materials and parts are sourced locally, not from China.
Consider US warehouses for domestic shipping: If you’re able to manage the inventory and cash flow risks, as well as longer transit times (1-2 months), stocking goods in US warehouses could help reduce customs delays and shipping costs for domestic orders.
Conclusion
Trump’s new tariffs have drastically changed the import landscape, specifically for one’s sourcing products from China. Importers must recalculate costs, improve their supply chain efficiency, and take more such measures to ensure their business remains profitable. If you want to save more on shipping from China, check out how NextSmartShip helps brands expand reach to global markets with efficient shipping.
Appendix 1
US HS Code Lookup Website: https://rulings.cbp.gov/home
US Tariff Rate Lookup Website: https://hts.usitc.gov/
US Section 301 Tariff List Website: https://ustr.gov/issue-areas/enforcement/section-301-investigations/search
Appendix 2
Original Text of US Tariff Policy for Reference Only:
(a) All articles that are products of the PRC, as defined by the Federal Register notice described in section 2(d) of this order (the Federal Register notice), shall be consistent with law, subject to an additional 10 percent ad valorem rate of duty. Such rate of duty shall apply with respect to goods entered for consumption or withdrawn from the warehouse for consumption on or after 12:01 a.m. Eastern time on February 4, 2025, except that goods entered for consumption or withdrawn from the warehouse for consumption after such time that were loaded onto a vessel at the port of loading or in transit on the final mode of transport prior to entry into the United States before 12:01 a.m. eastern time on February 1, 2025, shall not be subject to such additional duty, only if the importer certifies to US Customs and Border Protection within the Department of Homeland Security as specified in the Federal Register notice.
(b) The rates of duty established by this order are in addition to any other duties, fees, exactions, or charges applicable to such imported articles.
(c) Should the PRC retaliate against the United States in response to this action through import duties on United States exports to the PRC or similar measures, the President may increase or expand in scope the duties imposed under this Executive Order to ensure the efficacy of this action.
(d) In order to establish the duty rate on imports of articles that are products of the PRC, the Secretary of Homeland Security shall determine the modifications necessary to the Harmonized Tariff Schedule of the United States (HTSUS) in order to effectuate the objectives of this order consistent with law and shall make such modifications to the HTSUS through notice in the Federal Register. The modifications made to the HTSUS by this notice shall be effective with respect to goods entered for consumption or withdrawn from the warehouse for consumption on or after 12:01 a.m. Eastern time on February 4, 2025, except as otherwise noted in subsection 2(a) of this section and shall continue in effect until such actions are expressly reduced, modified, or terminated.
(e) Articles that are products of the PRC, except those that are eligible for admission under “domestic status” as defined in 19 CFR 146.43, which are subject to the duties imposed by this order and are admitted into a United States foreign trade zone on or after 12:01 a.m. eastern time on February 4, 2025, except as otherwise noted in subsection 2(a) of this section, must be admitted as “privileged foreign status” as defined in 19 CFR 146.41. Such articles will be subject upon entry for consumption to the rates of duty related to the classification under the applicable HTSUS subheading in effect at the time of admittance into the United States foreign trade zone.
(f) No drawback shall be available with respect to the duties imposed pursuant to this order.
(g) To avoid doubt, duty-free de minimis treatment under 19 U.S.C. 1321 shall not be available for the articles described in subsection (a) of this section.
(h) Any prior Presidential Proclamation, Executive Order, or other presidential directive or guidance related to trade with the PRC that is inconsistent with the direction in this order is hereby terminated, suspended, or modified to the extent necessary to give full effect to this order.
(i) The articles described in subsection (a) of this section shall exclude those encompassed by 50 U.S.C. 1702(b).”
