Hello Bill,

WB Skinner Trade Advisory

April 4, 2025

Recent U.S. Trade Policy Updates

The U.S. government has announced several significant trade measures affecting imports across various sectors. Below is a comprehensive overview to assist our clients in navigating these changes effectively.

1. Implementation of Global Tariffs

For Beginners: The U.S. is adding a new 10% tax (called a "tariff") on almost all goods being imported into the country. This is a broad policy designed to protect domestic industries by making foreign goods more expensive. However, some items and countries are excluded, and some goods already taxed under other programs won't be double-taxed.

Effective Date:

April 5, 2025, at 12:01 a.m. ET

Tariff Rate:

A universal 10% ad valorem tariff will be imposed on all imported goods unless specifically exempted.

Exemptions:

• Goods in transit (loaded and departed port of origin prior to effective time) are exempt.
• Products already subject to existing tariffs under Section 232:
• Steel and derivatives
• Aluminum and derivatives
• Automobiles and auto parts
• Products listed in Annex II of the Executive Order:
• Copper
• Pharmaceuticals
• Semiconductors
• Lumber
• Certain critical minerals
• Energy products
• Items under 50 U.S.C. 1702(b) (personal use, charitable goods, informational materials)
• Goods from Column 2 countries (e.g., Cuba, North Korea, Russia, Belarus)

Note: Goods qualifying under USMCA (Canada and Mexico) remain exempt unless the March 4 IEEPA tariffs are repealed. If repealed, only USMCA-qualifying goods remain exempt; others will be subject to a 12% tariff.

2. Elimination of Section 321 (De Minimis) Eligibility for Chinese Imports

For Beginners: Until now, if you bought something from China (including Hong Kong) under $800, you usually didn’t pay any import taxes. That changes on May 2. Now, even low-cost goods from China will be taxed. This affects online shopping and small business importing models that rely on low-cost Chinese products.

Effective Date:

May 2, 2025, at 12:01 a.m. ET

Overview:

Goods originating from China (including Hong Kong) will no longer qualify for duty-free entry under Section 321, which previously allowed goods valued under $800 to enter the U.S. without duties or taxes.

A. Non-Postal Shipments (e.g., courier, ocean, air freight)

• All goods under $800 from China or Hong Kong:
• Ineligible for de minimis
• Subject to all applicable duties
• Must be cleared via ACE using formal/informal entry by an authorized filer

B. International Postal Shipments (e.g., USPS, China Post)

• Duties apply in lieu of other tariffs:
• May 2 to May 31, 2025: 30% of value or $25 per item (whichever is higher)
• June 1, 2025 onward: $50 per item
• Carriers must:
• Hold an international carrier bond
• Pay applicable duties
• Report shipment counts and duty method to CBP

Macau Status:

• Currently exempt, but a Commerce Department review is due within 90 days to consider its inclusion.

Implications:

• Impacts e-commerce and drop-shipping models reliant on Chinese vendors
• Requires formal customs clearance, raises costs, and may delay delivery

3. Country-Specific Reciprocal Tariffs (Annex I)

For Beginners: Some countries have been singled out for having trade relationships that are seen as unfair to the U.S. Starting April 9, imports from these countries will be taxed at higher rates than the standard 10%—in some cases, much higher. This means goods from places like China, Vietnam, or the EU will cost more when brought into the U.S.

Effective Date:

April 9, 2025, at 12:01 a.m. ET

Overview:

Certain countries identified as contributing to significant U.S. trade deficits will face additional country-specific ad valorem tariffs, replacing the flat 10%.

Select Tariff Rates:

• China (incl. Hong Kong & Macau): 34%
• Vietnam: 46%
• European Union: 20%
• Japan: 24%
• South Korea: 25%
• India: 26%

Transit Exemption:

• Goods loaded and departed from port prior to the effective time are exempt.

Implications:

• Importers should assess exposure by reviewing country of origin and HTS classifications

4. Section 232 Tariffs on Automobiles and Auto Parts

For Beginners: If you’re importing cars or car parts, this is big news. A 25% tax now applies to many foreign-made passenger vehicles, light trucks, and parts. This could raise costs for car dealers and manufacturers that rely on imported parts.

Automobiles

• Effective: April 3, 2025
• Tariff: 25% on passenger vehicles and light trucks
• HTS Codes Affected:
• 8703.22.01, 8703.23.01, 8703.24.01
• 8703.31.01, 8703.32.01, 8703.33.01
• 8703.40.00, 8703.50.00, 8703.60.00
• 8703.70.00, 8703.80.00, 8703.90.01
• 8704.21.01, 8704.31.01, 8704.41.00
• 8704.51.00, 8704.60.00

Auto Parts

• Effective: May 3, 2025
• Tariff: 25% on engines, transmissions, electrical components, etc.
• Classified under provisions listed in the Federal Register Annex

USMCA Guidance:

• 25% tariff applies only to non-U.S. content in vehicles qualifying under USMCA
• No FTZ benefit; must be admitted under privileged foreign status

5. Aluminum Derivatives: Beer and Empty Cans

For Beginners: Two new products are being taxed as aluminum imports: beer (in cans) and the empty cans themselves. If you're in the beverage industry or manufacture packaging, expect to pay more to bring these aluminum products into the U.S.

Effective Date:

April 4, 2025, at 12:01 a.m. ET

Tariff Rate:

25% under Section 232

Products Affected:

• Beer: HTSUS 2203.00.00
• Empty aluminum cans: HTSUS 7612.90.10

Recommendations for Importers

1. Review Supply Chains: Assess exposure to new tariffs and consider alternate sourcing
2. Ensure Proper Classification: HTS codes and country of origin accuracy are critical
3. Monitor Official Notices: Follow CBP, Federal Register, and BIS updates
4. Prepare for Formal Entry: Especially for small-parcel imports from China
5. Consult a Trade Expert: WB Skinner is ready to help you navigate these updates