The United States government has announced an immediate implementation of a dual-track tariff policy. The key development is a 90-day pause on what are termed "reciprocal tariffs" for over 75 countries, accompanied by a simultaneous increase in tariffs on goods from China.
Effective immediately, the U.S. government has authorized a 90-day pause on "reciprocal tariffs" for a significant number of countries (over 75). During this 90-day period, a "substantially lowered Reciprocal Tariff" of 10% will be in effect for these nations. This action is reportedly in response to these countries engaging in trade negotiations with the United States on various trade-related issues and their decision not to retaliate against U.S. trade measures.
Concurrently, the U.S. government announced an immediate increase in the tariff rate applied to goods imported from China. This tariff has been raised to 125%, effective immediately. This decision is based on stated concerns regarding trade practices.
The 90-day pause and the reduced 10% reciprocal tariff for the majority of countries, as well as the increased 125% tariff on China, are both stated to be effective immediately.
On April 9, 2025, the Chinese government announced a significant escalation in its trade response to the latest U.S. tariff increases. An additional 50% tariff will now apply to a wide range of goods imported from the United States, bringing the total effective tariff rate to 84%.
This action follows the U.S. Executive Order on April 8, which raised tariffs on imports from China, Hong Kong, and Macau from 34% to 84%, effective April 9.
As of April 10, 2025, most U.S. goods entering China will be subject to a combined tariff rate of 84% (34% previously imposed, plus an additional 50%).
China has also extended export restrictions and blacklisted several U.S. companies, intensifying the scope of its retaliatory measures.
We understand that goods shipped from the place of departure before 12:01 AM (Beijing time) on April 10, 2025, and imported between 12:01 AM on April 10, 2025, and 24:00 (midnight) on May 13, 2025, will not be subject to the additional tariffs stipulated in this announcement.
On April 8th, 2025, the White House issued a new Executive Order that significantly increases reciprocal duties on imports from China, including Hong Kong and Macau. This action follows China’s implementation of additional tariffs on U.S. goods on April 4th.
Key Tariff Changes
Effective April 9th, 2025:
Deminimus Tariff Adjustments (Low-Value Imports)
Starting May 2nd, 2025, further changes will impact low-value (postal or express) imports:
These changes are expected to have a significant impact on the cost of importing affected goods, especially for small parcels and e-commerce shipments.
Full Executive Order Available Here: View Executive Order
China has now responded to the trade tariffs implemented by the United States. This response includes a range of measures designed to address the US actions. The specific details of these measures are as follows:
On April 4, China announced a new wave of retaliatory measures in response to the reciprocal tariffs released by the US:
1. 34% retaliatory tariffs (equivalent to Trump’s reciprocal tariff rate against Chinese products) on all US-origin goods, effective from 12:01 on April 10, 2025, currently without any waiving or exempting mechanism.
2. Export controls on seven categories of “medium and heavy rare earth elements” and related alloys and materials, effective immediately.
3. Adding 11 US companies to the Unreliable Entities List.
4. Adding 16 US companies to the Export Control List, China’s equivalent of Entity List under the EAR.
5. Suspending export permits for 6 US agricultural producers exporting the related agricultural products to China.
6. Multiple investigations regarding antidumping and "industry competitiveness" on specific US Goods.
The U.S. government has recently announced major tariff changes impacting a wide range of imported goods. These measures include:
Effective April 5, 2025, a 10% tariff applies to all imported goods, regardless of their country of origin. This broad measure aims to promote domestic manufacturing and reduce trade imbalances.
However, certain exemptions remain, which we will cover later in this update
Imports from certain countries will face higher reciprocal tariffs starting April 9, 2025.
Select List of Country-Specific Tariffs:
Country Tariff Rate
The full list can be found here.
A separate 25% tariff on automobiles and auto parts took effect on April 3, 2025.
Key Points on Automotive Tariffs
One of the most impactful changes for small parcel shipments is the elimination of the de minimis duty exemption for goods from China and Hong Kong, effective May 2, 2025.
Previously, shipments valued under $800 could enter the U.S. duty-free under de minimis rules. This exemption will no longer apply to imports from China and Hong Kong.
Impact on Businesses
Despite these sweeping tariff measures, several key exemptions remain in place:
Exempt Under 50 U.S.C. § 1702(b):
Steel, aluminum, automobiles, and auto parts already subject to Section 232 tariffs – These are governed by previous tariff measures and are not impacted by the new tariffs.
These tariff changes are expected to increase costs across multiple industries, particularly in:
This article courtesy of Woodland Group, Full-Trading Members of IIFA.
