Tariffs, Trade, and Timing: Breaking Down the US v. China Tariff Drama
- Sal Orozco
- Feb 21
- 3 min read
"Trade wars are good, and easy to win." - Donald Trump, 2018
The U.S.-China trade landscape just got a major shakeup. Here's what you need to know.
On February 1, 2025, Trump dropped a bombshell: 10% tariffs on Chinese imports and an end to duty-free shipping for low-value items. But plot twist - four days later, duty-free shipping got a temporary reprieve (though those tariffs? Still very much alive).
For businesses, especially in e-commerce, this rollercoaster isn't just giving everyone whiplash - it's forcing rapid adaptation. Sure, we've got a breather now, but don't get too comfortable. Big changes are coming.
Think of this pause as your prep time. U.S. Customs is gearing up their systems, and once they're ready, that duty-free door for Chinese goods? It's closing.
The New China Tariffs: Breaking It Down
Here's the deal: Starting February 4, there's a fresh 10% tariff on basically everything from China (yep, Hong Kong too).
Got stuff in transit? Here's your lifeline:
Shipped before February 1, 2025, 12:01 a.m. ET
Landing between February 4 and March 7, 2025
Pro tip: Keep those shipping receipts handy - you'll need to prove your timing. And forget about refunds or exceptions - these tariffs mean business.
De Minimis Drama: The Story So Far
That sweet $800 duty-free allowance for Chinese goods? It did a disappearing act on February 1, made a comeback on February 7, but don't get attached - it's likely living on borrowed time.
Quick refresher: De Minimis lets you import up to $800 worth of stuff per day, duty-free. Most countries have similar deals, but with way lower limits.
The twist? While other countries keep their duty-free privileges, China's getting singled out.
No Safety Net for In-Transit Shipments
When the policy hit, it hit hard - catching everyone mid-shipment with zero wiggle room.
USPS: Chaos, Then Calm
The policy bomb was so massive, USPS actually stopped accepting Chinese packages on February 4.
They got back in the game the next day, but only after some serious behind-the-scenes scrambling with customs.The ripple effects? They hit everyone - from sellers to shippers to brokers.
Silver lining: The February 7 timeout gives everyone a chance to catch their breath and gear up for what's coming next.
The New Import Playbook: Your Guide to China Shipping
Let's cut through the red tape and get your shipments moving smoothly.
Here's what's changing and how to stay ahead.
The old days of easy shipping from China are over. Entry Type 86? That's history. But don't worry - we've got your back.
Your New Shipping Checklist
Pick your lane: formal or informal entry (we'll help you choose)
Get ready to pay duties and fees (yes, on everything)
Got shipments over $2,500? You'll need formal entry (Type 1). For everything else, informal entry (Type 11) is your new best friend.
Mastering Entry Type 11: The Essentials
Think of Entry Type 11 as your VIP pass through customs. Sure, there's paperwork (CBP Form 7501), but we'll make it painless.
Here's what you'll need to nail:
Your company details (the basics)
Shipping info (where it's coming from, where it's going)
Product codes (those tricky 10-digit HTS numbers)
Value calculations (price + extras like packing and fees)
Quick heads up: You've got 10 days to pay those duties after your goods clear customs.
The Real Talk: Challenges Ahead
Getting those HTS codes right? It's like solving a puzzle. One wrong digit and you're looking at delays, fines, or both. And with China's triple-threat of regular duties, Section 301 tariffs, AND that new 10% hit? The math gets messy, fast.
Quick Answers to Your Import Questions
What's This De Minimis Thing?
Think of de minimis as your $800 duty-free shopping allowance for imports. It's like a daily free pass through customs
Entry Type 86: Your Express Lane (For Now)
This is your fast track through customs for those under-$800 shipments. But like those express lanes during rush hour, it's getting crowded - and might be closing soon for some imports.
HTS Codes: The Secret Code of Customs
Think of HTS codes as your product's passport. Get it wrong, and your shipment might end up in customs jail. Get it right, and you're golden. Not sure which code to use? Reach out.
What About Canada and Mexico?
Short version: There's a timeout until March while everyone figures things out. But if those 25% tariffs kick in, expect some pushback from our neighbors. Need help navigating these changes?
Use this time to future-proof your import game. We're here for you if you need a hand.