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As part of our commitment to keeping you informed of key global trade changes, we want to highlight a significant policy update that could affect your import operations.
On June 4, 2025, at 12:01 AM EDT, new tariff measures took effect under an Executive Order from the U.S. Administration. These changes double existing tariffs on most imported steel and aluminum products — including their derivatives — from 25% to 50%.
This move builds on the policy direction first signaled back in February and marks a substantial shift for importers across multiple industries. We strongly recommend reviewing your import activities to understand the impact on your current and future shipments.
U.S. Customs and Border Protection (CBP) has released updated Harmonized Tariff Schedule (HTS) codes outlining which aluminum and steel products fall under the new duty structure:
These lists may be updated, so regular monitoring is advised.
If your business relies on importing steel or aluminum, these changes could significantly impact landed costs and sourcing strategies. We're here to help you navigate these updates and remain compliant. Source: Maersk
India is in talks with the U.S. to lock in a temporary trade deal before July 9, 2025, when the current pause on 26% reciprocal tariffs expires. The agreement would also address the standard 10% tariff on Indian exports. India is pushing for relief in key sectors like textiles and leather, while the U.S. seeks lower duties on its industrial and agricultural goods. Both sides hope to reach a deal in time to avoid new trade barriers and boost two-way trade to $500 billion by 2030.
High-level U.S.-China trade talks are underway in London, focusing on tariffs and China’s restrictions on rare earth exports. U.S. officials are pushing for a formal commitment to resume shipments of these critical minerals. The talks aim to revive a 90-day trade truce and ease tensions. President Trump says discussions are going well, though challenges remain. The outcome could have major implications for global supply chains and economic stability. Source: Reuters
How to estimate import duty for your import shipments:
General Duty Rate based on HTS Code (link to official US Customs website here)
+ 10% reciprocal tariff (which replaces the previous 125%)
+ 20% Fentanyl Tariff
+ Section 232 (aluminum/steel and derivatives - if applicable)
+ Section 301 (punitive duties - if applicable)
+ Harbor Maintenance Fee (if applicable) - 0.125% of cargo value (No minimum or maximum charges)*
+ Merchandise Processing Fee (if applicable) - 0.3464% of the merchandise value (Minimum fee: $31.67, Maximum fee: $614.35)
*only applicable for ocean import shipments
On May 12, 2025, the United States and China agreed to a 90-day tariff reduction, effective through August 11. Under this agreement:
This temporary relief has led to a surge in shipments from China to the U.S., as businesses aim to capitalize on the reduced rates before the truce expires. (WSJ)
President Trump had announced a 50% tariff on European Union goods, set to commence on June 1. However, following discussions with European Commission President Ursula von der Leyen, the implementation has been postponed to July 9, allowing time for further negotiations. (Reuters, AP News)
President Trump has threatened a 25% tariff on smartphones not manufactured in the U.S., targeting companies like Apple and Samsung. This move aims to encourage domestic production but has raised concerns about potential price increases for consumers. (The Guardian)
The shifting tariff policies are influencing global trade dynamics:
Companies are exploring alternative manufacturing locations, such as India and Vietnam, to mitigate future tariff risks. (The Block Logistics, The Guardian)
These developments underscore the fluid nature of international trade policies and their far-reaching implications on global supply chains.
As part of recent trade measures aimed at recalibrating global tariff structures, the U.S. government has implemented specific reciprocal tariff rates based on country of origin and product classification. The following details outline the current structure:
This change reflects a phased approach following the 90-day tariff reduction agreement announced earlier in May between the U.S. and China.
Goods imported from the United Kingdom are currently subject to a 10% reciprocal tariff, which remains in effect indefinitely unless renegotiated.
As of April 16, 2025, semiconductor products have also been formally excluded from all reciprocal tariff applications. This exemption is intended to support the tech and manufacturing sectors amid ongoing supply chain realignments.
These evolving tariff structures underscore the importance for importers, logistics providers, and manufacturers to monitor time-of-entry regulations and HTS classifications closely to manage cost exposure and compliance risk. Further updates are expected in the lead-up to the key tariff adjustment dates in July and August.
On May 15, 2025, U.S. Customs and Border Protection (CBP) issued important guidance regarding the eligibility of shipments for in-transit exemptions under the reciprocal tariffs imposed via the International Emergency Economic Powers Act (IEEPA).
CBP confirmed that cargo transported via feeder vessels—smaller ships that transfer containers to larger, final-leg vessels—does not qualify for the reciprocal in-transit exemption, even if the cargo was loaded before the cutoff date.
To be eligible for exemption from reciprocal tariffs:
Businesses should review all April–May entries closely, particularly those involving transshipment hubs or multi-leg ocean routes.
Whether you need to model costs, rethink routing, or pressure-test your sourcing strategy, our team is here to help you take control. Get in Touch today.
As of May 15, 2025, the United States and China have agreed to a 90-day reduction in tariffs, aiming to ease trade tensions and facilitate further negotiations.
Key Developments:
Implications:
This temporary easing of tariffs provides relief to businesses affected by the trade war and may lead to more stable economic relations between the U.S. and China. However, the outcome of ongoing negotiations will determine whether these reductions become permanent or if previous tariff levels are reinstated.
Effective May 2, 2025, the U.S. has revoked the de minimis exemption for imports from China and Hong Kong. Previously, packages valued under $800 could enter the U.S. duty-free. With this change, all shipments from these regions are now subject to standard customs duties, impacting e-commerce platforms like Shein and Temu.
The elimination of the de minimis exemption for imports from China and Hong Kong, effective May 2, 2025, has significantly impacted U.S. importers and border control operations.
Previously, the de minimis rule allowed goods valued under $800 to enter the U.S. duty-free, facilitating a surge in low-cost imports, particularly from Chinese e-commerce platforms like Shein and Temu. With the exemption removed, these shipments are now subject to substantial tariffs—either a 120% ad valorem rate or a flat fee of $100 per package, increasing to $200 in June.
This policy shift has led to increased costs for importers, many of whom are reassessing their supply chains. Some businesses are exploring alternative sourcing options in countries not affected by the exemption removal, while others are considering establishing U.S.-based warehouses to mitigate tariff impacts . Additionally, the increased financial burden is often passed on to consumers, leading to higher prices for goods previously available at lower costs.
The removal of the de minimis exemption has also strained U.S. Customs and Border Protection (CBP). Previously processing over 4 million de minimis shipments daily, CBP now faces the challenge of inspecting and processing a significantly higher volume of packages requiring formal entry procedures.
This increased workload has led to logistical bottlenecks and delays in customs clearance. Moreover, the policy change aims to curb the influx of illicit goods, such as counterfeit products and synthetic opioids, which were often smuggled under the guise of low-value shipments . While the intent is to enhance border security, the immediate effect has been a considerable strain on CBP resources and infrastructure.
The U.S. has also engaged in new trade agreements, notably with the United Kingdom. Key highlights include:
These developments signify a dynamic shift in U.S. trade policy, with both temporary relief measures and long-term structural changes. Businesses engaged in international trade should closely monitor these changes to navigate the evolving landscape effectively.
Whether you need to model costs, rethink routing, or pressure-test your sourcing strategy, our team is here to help you take control. Get in Touch today.
McKinsey's March 2025 Economic Conditions Snapshot highlights a global economic landscape marked by increased uncertainty and cautious business sentiment.
Key insights include:
These insights underscore the complex and evolving economic environment businesses must navigate in 2025. McKinsey & Company
U.S. importers are increasingly utilising Canadian bonded storage to defer tariff payments. Inquiries for bonded storage north of the border have surged four-fold recently, according to 18 Wheels Warehousing and Trucking, a Canada-based third-party logistics provider.
Key Points:
This strategy is part of a broader trend where businesses are seeking ways to navigate the complexities of international trade and manage the financial implications of tariffs.
On April 29, 2025, President Trump signed an executive order easing tariffs on imported auto parts, offering temporary relief to U.S. automakers facing increased production costs. While the 25% tariff on imported vehicles remains, the new policy prevents these tariffs from compounding with existing duties on materials like steel and aluminum. Domestic manufacturers assembling vehicles in the U.S. are granted a two-year reprieve on duties for imported parts, with reimbursements up to 3.75% of a vehicle’s retail price in the first year. This move aims to stimulate domestic production and encourage foreign automakers to establish manufacturing within the U.S. Industry leaders, including executives from GM, Ford, and Tesla, welcomed the announcement, though some cautioned that the industry needs stability and that significant shifts require time and investment. Source: The Loadstar
For Australian businesses, tariff exposure is now a moving target - confidence in demand planning, landed cost forecasting, and network flexibility will be key. Here's the latest.
10% Baseline Tariff on Most Imports
Effective April 5, the U.S. imposed a 10% tariff on imports from most countries, including allies like Australia. This move is part of President Trump's "reciprocal tariffs" policy, which aims to address trade imbalances and encourage domestic manufacturing. Source: DFAT.
145% Tariffs on Chinese Imports
Tariffs on Chinese goods have escalated to an effective rate of 145%. This increase targets sectors such as electronics, pharmaceuticals, and automotive parts, intensifying the ongoing trade tensions between the U.S. and China.
Section 232 Investigation into Semiconductor Imports
The U.S. Commerce Department has initiated a Section 232 investigation into semiconductor imports, citing national security concerns. This could lead to new tariffs, potentially starting at 25%, on semiconductors from countries like Taiwan, South Korea, Malaysia, Japan, and China. Source: Politico
Temporary Exemptions on Electronics
While some electronics, including smartphones and laptops, were temporarily exempted from new tariffs, these exemptions are not permanent. The administration has indicated that additional duties may be imposed soon, affecting a broad range of consumer electronics.
Global Market Impact
The sudden implementation of these tariffs has led to volatility in global financial markets, with concerns about potential recessions in countries heavily reliant on exports to the US. Source: ABC
China Raises Tariffs to 125%
On Friday, China escalated the trade war by increasing tariffs on U.S. goods from 84% to 125%. This is a direct response to the U.S. imposing tariffs of up to 145% on Chinese imports. These duties took effect Saturday, signaling that tensions between the world’s two largest economies are far from cooling.
Impact on Global Markets
The intensified trade conflict has rattled investor confidence. U.S. stock markets have shown volatility, and uncertainty is expected to linger as the business community weighs the long-term impact of prolonged tariff escalations.
Temporary “Liberation Day” Tariff Pause
President Trump enacted a 90-day pause on his planned "Liberation Day" tariffs. This gesture was echoed by the EU, which agreed to a similar pause on retaliatory duties. While this creates a short-term diplomatic window, the broader conflict remains unresolved.
10% Tariff on Australian Exports
Despite the 2005 U.S.-Australia Free Trade Agreement, Australian exports to the U.S. are now subject to a 10% tariff. This has raised concerns among Australian exporters about the competitiveness of their products in the US market. Source: DFAT
Challenges in Negotiations
Australia's caretaker government faces difficulties in negotiating exemptions or adjustments to these tariffs, especially given the unpredictable nature of the current U.S. administration's trade policies. Source: The Guardian
Economic Uncertainty
The imposition of tariffs has led to a decline in consumer confidence within Australia, with fears that prolonged trade tensions could negatively impact the country's economic growth. Source: Reuters
Strategic Responses
Australian officials and business leaders are exploring diplomatic channels and leveraging personal relationships to address tariff issues. Notably, Australian golfer Greg Norman has offered to use his personal rapport with President Trump to facilitate discussions aimed at resolving trade disputes. Source: The Guardian
Increased Global Trade Uncertainty
As China and the U.S. continue their tariff tit-for-tat, global supply chains face increased pressure. Australia, which trades heavily with both nations, could see ripple effects—especially in sectors like agriculture, resources, and high-tech components.
Potential Opportunities in Re-Routing Trade
As the U.S. and China look to other markets to source goods, Australia may benefit from diverted demand. For instance, China could increase imports from Australia in areas where U.S. goods become too expensive.
Downside Risk for Exporters
However, the broader market volatility and economic slowdown triggered by the U.S.-China conflict could dampen global demand overall. This poses risks for Australian exporters, particularly those exposed to raw material and intermediate goods markets.
Need for Strategic Positioning
With rising protectionism in the U.S., Australian companies may need to rethink supply chains and diversify trading partners. Trade agreements with Asia-Pacific nations and the EU could offer more stable alternatives in the current climate.
When goods enter the United States, Customs and Border Protection (CBP) determines the amount of import duty (tariff) that must be paid. Tariffs are calculated based on three main factors:
This high rate typically happens when multiple types of duties are combined on certain Chinese imports:
These cumulative duties can push total landed tariffs up to 145% or more in some cases — especially on high-scrutiny goods like steel, aluminum, or electronics.
If you're importing, for example, furniture or clothing made in China, you're likely facing standard + Section 301 tariffs only. But if you’re importing solar panels, electronics, metal products, or industrial materials, you might trigger ADD/CVD investigations, which can bring huge extra charges.
Whether you need to model costs, rethink routing, or adapt your sourcing strategy, our team is here to help. Get in Touch today.
Today, U.S. President Donald Trump announced sweeping new tariffs on global imports, marking a significant shift in trade policy and injecting fresh uncertainty into supply chains worldwide. For APAC businesses, the challenge now is not just understanding what’s changed but navigating what comes next
On April 2, 2025, U.S. President Donald Trump signed an executive order terminating the "de minimis" trade exemption for low-value shipments from China and Hong Kong. This exemption previously allowed packages valued at $800 or less to enter the United States duty-free and with minimal customs oversight. The new policy will take effect on May 2, 2025, at 12:01 a.m. ET.
The de minimis provision permitted low-value shipments to bypass import duties and extensive customs inspections, facilitating a surge in e-commerce imports. In the fiscal year 2024, circa 1.36 billion shipments utilised this exemption, more than doubling the total from four years prior.
The revocation of the de minimis exemption is expected to increase customs workload and raise costs for smaller shipments. It will also significantly impact Chinese e-commerce platforms such as Shein and Temu, which have relied heavily on this provision. Critics of the exemption argued that it disadvantaged U.S. businesses by allowing foreign competitors to avoid tariffs and undercut prices.
Despite longstanding ties, Australia has not been exempted from these new tariffs. The 10% tariff will apply to around $23.9 billion in Australian exports to the US including key categories like commodities, pharmaceuticals, and meat.
Prime Minister Anthony Albanese called the move “totally unwarranted” and “not the act of a friend,” but confirmed Australia will not implement retaliatory tariffs. Instead, the government is pursuing dispute resolution under the AUSFTA.
While the US accounts for less than 5% of Australia’s total exports, the shift signals a broader move toward protectionism - one that APAC supply chains can’t ignore.
In the short term, the new tariffs are expected to create disruption at the border and slow down supply chains. Taking proactive steps now can help minimise delays and cost blowouts.
If you’ve already diversified away from China, you may still be exposed. Many businesses moved operations to Vietnam, Thailand, and Bangladesh post-COVID - countries now facing some of the highest U.S. tariff rates.
This reinforces a key point: diversification must go beyond geography. What’s needed is a more strategic, adaptable model.
The current trade environment requires a more nuanced approach. Leading supply chains are:
Diversification can’t be static in the current environment. It needs to be dynamic, data-driven, and continuously reviewed.
Whether you need to model costs, rethink routing, or pressure-test your sourcing strategy, our team is here to help you take control. Get in Touch today.
Today, U.S. President Donald Trump announced sweeping new tariffs on global imports, marking a significant shift in trade policy and injecting fresh uncertainty into supply chains worldwide. For APAC businesses, the challenge now is not just understanding what’s changed but navigating what comes next.
Despite these changes, trade among these economies is expected to continue, with businesses adjusting their supply chains accordingly.
Although Australia is not directly affected in these tariff measures, there are several key considerations for APAC shippers:
For APAC shippers, staying informed and adaptable will be essential in the coming months. To help mitigate risk, we suggest:
While trade remains strong, shifting policies highlight the need for flexibility and proactive supply chain management. Want to know how these changes could impact your supply chain? Speak to your Explorate operator today to get expert insights and tailored solutions.
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