February 4, 2025 | By Bestway

Tariff Changes: What Shippers Need to Know

tariff

Update 2/7/25 President Trump has reinstated the de minimis exemption for Chinese imports—at least temporarily. The exemption, which allows duty-free entry for shipments valued under $800, was previously revoked as part of a broader tariff package. However, following significant industry pushback and concerns over customs processing delays, the administration has reinstated de minimis eligibility until the Department of Commerce determines that Customs’ systems can effectively process and collect tariff revenue on these shipments.

Under the revised rule, duty-free de minimis treatment will remain in place for qualifying imports from China, but will be revoked once the Secretary of Commerce notifies the President that CBP has the infrastructure in place to efficiently manage the processing and duty collection for these goods. This means that while importers have a temporary reprieve, the policy is subject to change once enforcement capabilities catch up. For logistics companies, the uncertainty surrounding de minimis underscores the need for strong contingency plans, bulk import strategies, and partnerships with freight service providers to navigate shifting trade policies.

As the U.S. implements new tariffs on China while postponing duties on Canada and Mexico for further negotiations, everyone is watching what retaliatory measures might be coming. As of February 4, 2025, a 10% tariff on Chinese imports has taken effect, prompting China to announce retaliatory tariffs on U.S. goods set to begin on February 10. Meanwhile, the suspension of the de minimis exemption for small shipments is expected to impact e-commerce businesses and cross-border trade operations significantly. These changes come amid growing uncertainty surrounding global supply chains, trade policy shifts, and ongoing diplomatic discussions.

China’s Response and Trade Implications

In response to the U.S. tariffs, many Chinese manufacturers are accelerating production relocations to third countries such as Vietnam, Mexico, and the Middle East to circumvent the new duties. While Beijing has yet to announce sweeping retaliation, it is weighing countermeasures such as export restrictions, antitrust investigations, and WTO action. Some analysts believe this tariff escalation will reinforce China’s long-term strategy of economic self-sufficiency while reshaping global trade dynamics.

Canada and Mexico: A Temporary Reprieve

After negotiations with President Trump, Canada and Mexico secured a 30-day delay on the planned 25% tariffs originally scheduled to take effect. In return, both countries have committed to enhancing border security and drug enforcement efforts. The situation remains fluid, with additional negotiations expected to determine the long-term outcome.

The End of De Minimis and Its Impact

A major change affecting importers is the removal of the de minimis exemption, which previously allowed shipments under $800 to enter the U.S. duty-free. This policy shift will drive up costs for consumers and businesses relying on direct-to-consumer international e-commerce while also increasing customs processing times and regulatory complexity. Companies may need to adjust their logistics strategies to mitigate delays and additional expenses.

What Bestway Can Do To Help Your Business

The evolving tariff landscape presents challenges and uncertainties for businesses engaged in global trade. Bestway International monitors these developments to help shippers navigate the shifting regulatory framework. If you have concerns about how the de minimis exemption changes may impact your cargo, contact Bestway International for guidance on compliance and alternative logistics solutions.