Customs Trade Update

Below is a summary of recent presidential actions from this past week that affect tariffs. The Yusen Logistics customs brokerage team is actively monitoring these changes and working with our global network to ensure smooth and timely clearance of your shipments, keeping your supply chain resilient and compliant.

If you have questions or plan to modify your supply chain accordingly, please don't hesitate to reach out to your sales representative or email us at solutions@us.yusen-logistics.com and a member of our team will contact you promptly.
 

Reciprocal Tariffs - Effective April 5 & April 9, 2025

On April 2, the White House issued an Executive Order>> that all articles imported into the U.S. will be subject to an additional ad valorem rate of duty of 10 percent. This rate will apply to all goods entered for consumption on or after 12:01 a.m. ET on April 5, except goods loaded onto a vessel at the port of loading and in transit on the final mode of transit before 12:01 a.m. ET on April 5.

On April 9, all articles from trading partners enumerated in Annex I - Country Rate List>> will be subject to the rates assigned to the respective country. These published rates include the 10% baseline established on April 5. For example, the reciprocal tariff for China is 34%, which is the 10% base tariff that takes effect on April 5th plus the 24% China-specific reciprocal tariff that takes effect on April 9th. This rate will apply to all goods entered for consumption on or after 12:01 a.m. ET on April 9, except goods loaded onto a vessel at the port of loading and in transit on the final mode of transit before 12:01 a.m. ET on April 9. The associated HS Codes can be found in Annex III>>.

Products listed in Annex II>> are exempt from the duty rates specified in this order.  These include:

• All articles that are encompassed by 50 U.S.C. 1702(b),
• All articles and derivatives of steel and aluminum are subject to the duties imposed pursuant to section 232,
• All automobiles and automotive parts are subject to the additional duties imposed pursuant to section 232,
• Other products, including copper, pharmaceuticals, semiconductors, lumber, certain critical minerals, and energy products.
• All articles from a trading partner are subject to the rates set forth in Column 2 of the Harmonized Tariff Schedule of the United States (HTSUS); and
• All articles that may become subject to duties pursuant to future actions under section 232 of the Trade Expansion Act of 1962.

There are additional exemptions for products of Canada and Mexico. These countries are not included in the above rate Annexes, and will be subject to the below:

USMCA eligible goods will continue to enter the country duty-free.
Goods not eligible for USMCA will remain subject to the 25% tariff established in previous executive orders. Should those executive orders terminate, these goods will be subject to a 12% tariff rate.

It’s important to note that these duty rates are in addition to existing duty rates. For example, an article from China could have a normal duty rate of 2.5% plus a 25% Section 301 tariff, a 20% IEEPA tariff from earlier this year, and a 34% reciprocal tariff, for a total of 81.5%. This is our current understanding based on the wording of the executive order, as well as our trade partners, and will be confirmed once the Federal Register and instructions from US Customs are issued.
 

De Minimis effective - May 2, 2025

President Trump also signed an Executive Order>> on April 2, eliminating duty-free de minimis treatment for low-value imports from China, effective May 2 at 12:01 a.m. ET.

“Imported goods sent through means other than the international postal network that are valued at or under $800 and that would otherwise qualify for the de minimis exemption will be subject to all applicable duties, which shall be paid in accordance with applicable entry and payment procedures,” said this White House Fact Sheet>>.

“All relevant postal items containing goods that are sent through the international postal network that are valued at or under $800 and that would otherwise qualify for the de minimis exemption are subject to a duty rate of either 30% of their value or $25 per item (increasing to $50 per item after June 1, 2025). This is in lieu of any other duties, including those imposed by prior Orders,” the fact sheet added.
 

Automobiles and Automobile Parts - effective April 3 and May 3, 2025

The Federal Register>> notice has been published to outline the details of the 25% tariff rate that the White House announced on March 26. This Federal Register includes the applicable HS codes that will be targeted, as well as the new HS codes to be used for declaration.

Effective April 3, 2025, all imports of automobiles specified in Annex I, Part A, to this proclamation or in any subsequent annex to this proclamation, as set out in a subsequent notice in the Federal Register, shall be subject to a 25% tariff. If the vehicle qualifies for USMCA origin and contains US materials, the declared US value can be excluded from the 25% application.

Effective May 3, 2025, all imports of automobile parts specified in Annex I, Part B, shall be subject to a 25% tariff. If the part qualifies for USMCA origin, it will be excluded from this tariff until the Secretary establishes a process to apply the tariff to non-US content.
 

Next Steps

We advise all clients to review their current and future shipments to ensure compliance with these new tariffs. The Yusen Logistics Customs Brokerage team is actively looking into the situation and will continue to support you with seamless and timely clearance.
 

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