2025 Tariffs and Their Impact on Global Trade

Reduced Tariffs on U.K.-made Automobiles, Automobile Parts and Civil Aircraft Parts – June 30, 2025

Effective June 30, CBP will implement reduced tariffs on automobiles, automobile parts and qualifying civil aircraft parts manufactured in the United Kingdom. U.S. imports of automobiles and automobile parts made in the U.K. will be subject to a 10% total tariff, while qualifying civil aircraft parts will be exempt from duties.  More information and a list of qualifying civil aircraft parts can be found here.

CBP makes changes to reporting rules for U.S. imports of aluminum derivatives – June 13, 2025

Effective June 28, if the country where an aluminum derivative product was cast and smelted is unknown, it must be reported as “UN." Aluminum derivative U.S. imports listed as “UN” will face a 200% duty under Section 232 tariffs, in accordance with CBP guidance. If not specified on the commercial invoice, UPS will default the country of cast and smelt to “UN.” More information can be found here.

Increase to Tariffs on Steel and Aluminum - June 4, 2025

Effective June 4, the tariff rate for imports of steel articles and derivative steel articles, and aluminum articles and derivative aluminum articles, was increased to 50% ad valorem. The duties apply to all steel and aluminum content listed here. Goods originating from Canada or Mexico should review the updated guidance on tariff stacking. Goods originating in the UK are exempt from the increase and will remain at a tariff rate of 25% until at least July 9. More information can be found here.

US Court of International Trade Ruling on US Tariffs - May 28, 2025

On May 28, 2025, the US Court of International Trade issued a ruling regarding recent Worldwide, Reciprocal and Trafficking tariffs. The federal government was later granted a pause on implementation of the ruling while the appeal process is underway. We will continue to collect all applicable tariffs and duties during this period.

Modifying Reciprocal Tariff Rates Announcement - May 12, 2025

These changes go into effect at 12:01 a.m. ET on May 14, 2025.

Reduced Tariffs on Goods from China and Hong Kong for 90 Days

• China and Hong Kong origin goods imported in the U.S. will be charged a 30% tariff rate, down from 145%, for 90 days.

De Minimis Exemption for China-Origin Goods is Still Eliminated

• The 90-day reduction in tariff rates on Chinese and Hong Kong origin goods did not undo the May 2 Executive Order that ended the de minimis exemption for China and Hong Kong imports. Goods made in China and Hong Kong still do not qualify for duty-free entry, regardless of their value or how they are routed into the U.S. The de minimis exemption remains in effect for goods originating in other countries.

Modified Tariffs on Postal Shipments

• All postal shipments from China and Hong Kong, regardless of their value, will be charged a 54% duty rate (down from 120%) or $100 flat fee, per postal item. The planned June 2 increase to a $200 flat fee per postal item is cancelled.

CBP Clarifies De Minimis Suspension for China and Hong Kong Goods- May 1, 2025

• U.S. Customs and Border Protection (CBP) provided details confirming postal network shipments containing products with Country of Origin China and Hong Kong SAR are not eligible for de minimis regardless of the ship-from country.
• The Guidance for Carriers of International Mail document from U.S. CBP has been highlighted showing the relevant statements on this topic.

U.S. Customs and Border Protection posted CSMS 64861116 on Friday, April 25, 2025, regarding the elimination of the de minimis exemption for products of China and Hong Kong.

• Starting on May 2nd at 12:01 am EST all imports under $800 USD into the US containing products of China and Hong Kong will no longer be eligible for duty free treatment under the de minimis exemption and will now be required to be submitted as an informal or formal entry.
• Please be aware products of China and Hong Kong will now be subject to any applicable duty and taxes.
• This notice also suspends the formal entry requirements for articles subject to tariffs valued over $250 and will now allow informal entry to be utilized for eligible products up to $2,500. This change is effective Wednesday, April 30, 2025.

US elimination of the de minimis exemption for products of China and Hong Kong- April 25, 2025

• Starting on May 2nd at 12:01 am EST all imports under $800 USD into the US containing products of China and Hong Kong will no longer be eligible for duty free treatment under the de minimis exemption and will now be required to be submitted as an informal or formal entry.
• This notice also suspends the formal entry requirements for articles subject to tariffs valued over $250 and will now allow informal entry to be utilized for eligible products up to $2,500. This change is effective Wednesday, April 30, 2025.

Updates to Tariffs on U.S. Imports to Canada April 17, 2025

• Canada has initiated a six-month suspension of the 25% tariffs on some U.S.-origin imports and motor vehicles from specific companies. These Changes will be in effect from April 17, 2025 – October 16, 2025

• This tariff suspension only applies to the following U.S. goods imported for Public Health, Public Safety, National Security; Health Care, or; Manufacture, Processing, or Packaging:

  • Steel and Aluminum (HS codes can be found here)
  • Certain goods (HS codes can be found here)

• The following specialty goods will also qualify for the tariff suspension (HS codes can be found here.)

  • Specialized infant formulas
  • Nutrition formulas, metabolic products, formulated liquid diet or human milk fortifiers
  • Medical compression garments
  • Sterile barrier film or pouches for use in medical manufacturing

Importers must inform their brokers of their eligibility, and the appropriate code will be entered for the calculation of taxes and duties.

Reciprocal Tariff exemptions announced on April 11, 2025

• On April 11, 2025, the U.S. announced exclusions to the IEEPA Reciprocal Tariff for certain headings and subheading of the USHTS related to semi-conductors, cell phones, and other electronics.
• These exclusions are retroactive back to April 5, 2025 and will remove the tariffs that were announced in previous communications dating back to April 2, 2025
• These headings and subheadings are still subject to the IEEPA Fentanyl tariffs announced in February 2025.
• For a full list of the impacted HTSUS headings and subheading please see CSMS 64724565.

Amendment to tariffs on U.S. imports to China effective April 12, 2025

On April 11, 2025, the State Council of China announced an increase in the additional tariff on all goods originating from the United States, raising it from 84% to 125%. This amendment will take effect on April 12, 2025. All other details remain unchanged as per the provisions outlined in the Tariff Commission Announcement No. 4 of 2025.

Executive Order on Tariff Adjustments Impacting China, Hong Kong, and Macau- April 9,2025

On April 9, 2025, the U.S. President issued an Executive Order updating previous directives on reciprocal tariffs.

Summary: Effective April 10, 2025, tariff rates for all trading partners, except China, Hong Kong, and Macau, have been paused and reset back to 10%. Most goods originating from China, Hong Kong, and Macau are now subject to an additional ad valorem rate of duty of 125%.

Key specifics about the tariff changes:

Tariffs for China Country of Origin Goods to increase on April 10th

• On April 9th, US announced it will increase the tariff rates on US imports for products of China, Hong Kong SAR, and Macau SAR.
• Effective April 10th, the IEEPA reciprocal tariff rate for products of products of China, Hong Kong SAR, and Macau SAR will now be125% which was adjusted from the previous announced 84%.
• These tariffs, in addition to the IEEPA tariffs from February 2025, result in a total tariff rate of 145% on U.S. imports when China, Hong Kong SAR, or Macau is the Country of Origin.

Changes to IEEPA Reciprocal Tariffs implemented on April 9th for all Non-China/Hong Kong

• On April 9th, US announced a 90-day pause will be placed on all country-specific reciprocal tariff rates for countries identified on Annex 1 (originally announced on April 2nd).
• Exception to this change is China, Hong Kong SAR, and Macau SAR which received an increased reciprocal tariff.
• The pause will begin on April 10th at 12:01 am EST.
• The 10% reciprocal tariff that took effect April 5th remains in place for all countries other than China, Hong Kong SAR, Macau SAR, Canada, and Mexico.
• Canada and Mexico remain subject only to the 25% IEEPA tariffs that were implemented on March 4.

China to impose additional 34% tariffs on all US imports starting April 10

An additional 34% tariff will be imposed on all US-origin goods, based on the current applicable tariff rates.

Current bonded and tax reduction policies will remain unchanged, and the new tariffs will not be subject to exemptions.

Goods that are shipped from their place of departure before 12:01 Beijing time on April 10, 2025, and imported between 12:01 Beijing time on April 10, 2025, and 24:00 Beijing time on May 13, 2025, will not be subject to the additional tariffs specified in the announcement.

Formal Entries to Increase for Non-De Minimis Shipments resulting in additional US Customs fees- April 4, 2025

With the recent announcement of the US reciprocal IEEPA tariffs effective April 5th at 12:01 a.m. EST, all shipments that are not eligible for de minimis, will now require the addition of a designated Chapter 99 HTS to assign the appropriate IEEPA tariff rate.

This may result in additional US Customs fees because in many cases, each shipment may be required to be entered under a formal entry type. The formal entry type requires the payment of a Merchandise Processing Fee (MPF) which has a minimum of $32.71. For more information regarding the US Customs entry type requirement please see 19 CFR 143.21.

US “Liberation Day” Tariffs Announced April 2, 2025

Two US Executive Orders were announced on April 2, 2025 detailing new tariffs and re-suspension of de minimis for goods originating in China.

Reciprocal Tariffs

• 10% tariff on all US Imports shipped from all countries, effective April 5, 2025 at 12:01 A.M. EDT

• Higher individualized reciprocal tariffs will be applied on shipments from other countries with which the United States has the largest trade deficits, effective April 9, 2025

• Under this IEPPA Order, the President of the United States has authority to increase these tariffs as deemed necessary

• Shipments from Canada and Mexico remain subject to the IEEPA targeting Fentanyl / Migration, and therefore are unaffected by this order. This means USMCA compliant goods will continue to see a 0% tariff, non-USMCA compliant goods will see a 25% tariff, and non-USMCA compliant energy and potash will see a 10% tariff.

• In the event the existing fentanyl/migration IEEPA orders are terminated, USMCA compliant goods would continue to receive preferential treatment, while non-USMCA compliant goods would be subject to a 12% reciprocal tariff.

• Exceptions to the Reciprocal Tariffs include:

• • (1) articles subject to 50 USC 1702(b);
  • (2) steel/aluminum articles and autos/auto parts already subject to Section 232 tariffs;
  • (3) copper, pharmaceuticals, semiconductors, and lumber articles;
  • (4) all articles that may become subject to future Section 232 tariffs;
  • (5) bullion; and
  • (6) energy and other certain minerals that are not available in the United States.

De Minimis

• Effective May 2, 2025, the U.S. will reinstate their previous decision to end duty-free entry for low-value Chinese goods into the U.S.

Things to Know:

• Shipments held at a UPS facility due to capacity constraints will still be subject to the additional duties if they arrive in the destination country after 12:01 a.m. ET on April 5, 2025, unless the merchandise is entered for consumption or withdrawn from warehouse for consumption before that time.
• Proof that a shipment was "loaded onto a vessel at the port of loading or in transit" is typically established when the Master Air Waybill (MAWB) is linked to the shipment, which generally becomes visible once the shipment is in transit.
• UPS does not automatically waive disbursement fees for shipments subject to additional tariffs due to delayed import or arrival. However, each case will be reviewed individually, and UPS will assess the circumstances on a case-by-case basis.
• Goods of Chinese or Hong Kong SAR origin are subject to applicable tariffs based on US Rules of Origin, regardless of the country from which they are shipped. For example, Made-in-China goods shipped from Australia to a US importer will still be treated as Chinese origin. Importers should be prepared to substantiate the country of origin, as US Customs may request a Certificate of Origin (COO) at any time.
• Goods that are not of Chinese or Hong Kong SAR origin but are exported from a Chinese port are not subject to tariffs under the Executive Order, as US Rules of Origin determine tariff applicability. Only products that originate from China or Hong Kong SAR will be affected, regardless of the export route. De minimis will continue to apply to non-China/Hong Kong SAR origin goods. Importers should be prepared to provide substantiation of the goods’ country of origin, as US Customs may request a Certificate of Origin (COO) at any time.

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Tariffs on Countries Importing Venezuelan Oil Effective April 2, 2025

Effective April 2, 2025, a 25% tariff may be applied to all goods imported into the United States from any country that purchases Venezuelan oil, either directly or through third parties.

Key specifics about the tariff changes:

• These tariffs will be in addition to duties already imposed on imports, such as IEEPA, Section 232, Section 301, etc.

  • Once imposed, the tariff shall expire 1 year after the last date on which the country imported Venezuelan oil, or at an earlier date if the Secretary of State deems appropriate.
  • If this tariff is imposed against China, it also includes Hong Kong and Macau.

• The Secretary of State, in consultation with the Secretary of the Treasury, the Secretary of Commerce, the Secretary of Homeland Security, and the US Trade Representative, shall determine, in his discretion, whether the tariff will be imposed for which countries.

• The executive order is based on the national emergency declared with respect to Venezuela, which has been continued due to the ongoing threat posed by the actions and policies of the Nicolás Maduro regime.

• The executive order builds on existing sanctions, including those imposed in Executive Orders 13692, 13808, 13850, and 13884, which remain in effect.

We are closely monitoring the situation to ensure minimal disruption to our supply chain. We are committed to keeping you informed about any changes that may affect our services. We encourage all customers to review their supply chains, assess potential cost implications, and ensure compliance with the new regulations.

If you have any questions about how these changes affect your imports, please reach out to your UPS brokerage representative, who will engage compliance or TAS as necessary.

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Additional U.S. Import Tariff on Automobiles – March 26, 2025

On Wednesday, March 26, 2025, the U.S. announced an additional 25% tariff will be placed on all automobiles imported in the US starting April 3rd at 12:01 AM. This will include passenger vehicles and light trucks.

Certain auto parts (engines and engine parts, transmissions and powertrain part and electrical parts) will also be subject to the additional 25% tariffs. Additional details are forthcoming on the effective date and explanation of specific parts that will be subject to this tariff change.

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Update on New Tariffs on Steel and Aluminum Imports Effective March 12, 2025

Effective March 12, 2025, the U.S. government will impose a 25% tariff on all steel and aluminum imports. This move aims to protect the U.S. steel and aluminum industries from unfair trade practices and global excess capacity.

Here are some key specifics about the tariff changes:

• The tariffs on both steel and aluminum imports will be set at 25%.

  • This applies not only to steel and aluminum imports from countries subject to Sec. 232 tariffs since 2018 but also to those previously exempt, including Argentina, Australia, Brazil, Canada, the EU, Japan, Mexico, South Korea, Ukraine, and the United Kingdom.
  • Imports of aluminum from Russia will be subject to a 200% tariff.

• The tariffs also apply to certain derivative products made from steel and aluminum. For a full list of these classifications, please visit the Federal Register Notice for Imports of Aluminum and Steel. The tariffs apply unless the derivative product was produced from steel melted and poured in the U.S. or the aluminum was smelted and cast in the U.S.

  • Importers of steel and aluminum articles (goods classified in chapter 72, 73, and 76 of the HTS) and derivatives of steel and aluminum, must provide the country of melt/pour (steel) and country of smelt/cast (aluminum).

  • CBP will require that the value and weight of any steel or aluminum content be reported as a second line on the entry.

  • • If a derivative steel article does not fall under Chapter 73 of the Harmonized Tariff Schedule (HTS), tariffs will apply only to the steel content.
    • If a derivative aluminum article does not fall under Chapter 76 of the HTS, tariffs will apply to only the aluminum content.

• Additionally, effective 11:59 PM ET on February 10, 2025, no new product exclusions will be granted or renewed based on insufficient U.S. production.

  • Existing exclusions will remain valid until their expiration date or until the excluded product volume is exhausted —whichever occurs first.
  • All General Approved Exclusions (GAEs) will be terminated on March 12, 2025.

• For goods subject to the new tariffs that are being imported into a Foreign Trade Zone (FTZ), they must be designated as “privileged foreign status” within FTZs.

• Any attempt to misclassify steel or aluminum imports to evade duties will result in maximum monetary penalties under the law, with no consideration for mitigating factors.

• There will be no duty drawback of steel or aluminum import tariffs under the updated program.

We are closely monitoring the situation to ensure minimal disruption to our supply chain. We are committed to keeping you informed about any changes that may affect our services. We encourage all customers to review their supply chains, assess potential cost implications, and ensure compliance with the new regulations.

If you have any questions about how these changes affect your imports, please contact our compliance team for further assistance.

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Update on Additional Duties on Imports from Canada and Mexico – March 7, 2025

Effective March 7, 2025, commodities covered under the USMCA agreement are exempt from the 25% tariffs on Canada and Mexico origin goods that took effect on March 4, 2025. For more information about the USMCA agreement, please visit https://www.ups.com/us/en/support/shipping-support/legal-terms-conditions/us-mexico-canada-trade-agreement

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Tariffs and De Minimis Updates - March 4, 2025

Canada & Mexico Tariffs – March 4, 2025

• An additional 25% tariff will be applied on all goods of Canada and Mexico country of origin, effective March 4, 2025.
• Energy resources (oil, natural gas and electricity) from Canada are subject to an additional 10% tariff.
• These increased tariffs were originally scheduled to take effect on February 4, but were given a one month delay for negotiations.
• De Minimis remains in place until notification by the Secretary of Commerce to the President that adequate systems are in place to fully and expeditiously process and collect tariff revenue applicable to the February 1 Executive Order.

China & Hong Kong Tariffs – March 4, 2025

• All products of CN/HK origin imported into the United States will be charged and additional 10% tariff starting March 4, 2025.
• This increase will apply in addition to any existing tariffs (including those that took effect on February 4).
• De Minimis remains in place until notification by the Secretary of Commerce to the President that adequate systems are in place to fully and expeditiously process and collect tariff revenue applicable to the February 1 Executive Order.

Canada De Minimis Update – March 2, 2025

• An amendment was announced on March 2, 2025 with impacts to Executive Order 14193 dated February 1, 2025, regarding goods with Canada as the Country of Origin which was further amended on February 3, 2025.
• The updated amendment states that duty-free de minimis treatment is available on all products with a country of origin of Canada. However, this amendment further states that the de minimis exemption shall cease to be available for these goods upon notification by the Secretary of Commerce to the President that adequate systems are in place to fully and expeditiously process and collect tariff revenue applicable to the February 1 Executive Order.

Mexico De Minimis Update – March 2, 2025

• An amendment was announced on March 2, 2025 with impacts to Executive Order 14194 dated February 1, 2025 regarding goods with Mexico as the Country of Origin which was further amended on February 3, 2025.
• The updated amendment states that duty-free de minimis treatment is available on all products with a country of origin of Mexico. However this amendment further states that the de minimis exemption shall cease to be available for these goods upon notification by the Secretary of Commerce to the President that adequate systems are in place to fully and expeditiously process and collect tariff revenue applicable to the February 1 Executive Order.

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China De Minimis Update - February 7, 2025

An executive order on Friday is temporarily reinstating the de minimis trade exemption for small packages from China. However, this exemption will end once the Secretary of Commerce informs the President that systems are in place to efficiently process and collect tariff revenue on these items.

As of now, under the February 7 amendment to the order affecting tariffs on China, de minimis remains in effect for eligible goods from China and Hong Kong until the Secretary of Commerce confirms adequate tariff collection systems are ready.

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Canadian, Mexican, and Chinese Imports - February 5, 2025

On February 1, 2025, the US administration issued three Executive Orders impacting tariffs on Canadian, Mexican and Chinese imports. The following changes took effect at 12:01 a.m. EST on February 4, 2025:

China & Hong Kong Tariffs (Effective February 4, 2025)

• An additional 10% tariff applies to all goods from China and Hong Kong.
• De minimis treatment is suspended, meaning all shipments—regardless of value—are subject to applicable duties.
• Section 321 (US de minimis) waivers are no longer available for China or Hong Kong goods.
• Requests for de minimis entry and clearance for such shipments will be rejected.

Canada & Mexico Tariffs (Currently Paused Until March)

• Initially, an additional 25% tariff was set to apply to all goods from Canada and Mexico.
• Energy resources (oil, natural gas and electricity) from Canada were subject to a 10% tariff.
• As of February 3, 2025, these tariffs have been paused for at least 30 days while negotiations continue.

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What Are Tariffs, and How Do They Work?

Tariffs are taxes levied by a government on imported goods, increasing their cost upon entry. These taxes serve various purposes, such as protecting domestic industries, generating government revenue, and balancing trade relations. When a tariff is applied, the importer pays the additional duty at customs before the goods are released.

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Who Pays the Tariffs?

In general, the responsible party for payment of tariffs imposed on foreign goods is based on the incoterms of the shipment. Incoterms are a uniform set of international trade standards that outline who is responsible for transportation, cargo insurance, export and import formalities, payment of duties and taxes, and at what point risk transfers from the seller to the buyer.

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How Will the New US Tariffs for China and Hong Kong Be Applied?

Tariffs are applied to all goods originating from China and Hong Kong per the Federal Register Notice.

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What are Rules of Origin and How are Rules of Origin applied?

Rules of Origin are the criteria used to determine a product's country of origin for trade and customs purposes. They are essential in applying tariffs, trade agreements and import restrictions. In this case, the Rules of Origin will ensure that all products from targeted countries are subject to tariffs, regardless of their routing to the US.

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With the New US Tariffs, Can I Still Claim De Minimis (Below $800 USD per Day)?

No. De minimis is suspended for all products from China and Hong Kong, regardless of the export country.

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Are There Exceptions to The 10% Additional Duties for China and Hong Kong?

No.

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Can I Claim Duty Drawback on New US Tariffs for China, Mexico or Canada?

No. The additional duties imposed by the Executive Order are not eligible for duty drawback.

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What Data Should I Include on the UPS Connect System?

Please include the following data elements applicable to your business to enable streamlined manual entry on your behalf when necessary:

• Part
• Description
• Origin Country
• Full 10-digit tariff
• Line quantity
• If textile, then a MID is required
• Line value
• Currency
• Consignee complete name, address, and tax id
• PGA info if applicable

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How Will the New US Tariffs Impact My Business and Supply Chain?

US trade policy changes will likely increase landed costs due to tariffs and require adjustments to import declarations. Businesses may need to adjust pricing or explore alternative supply chains to manage costs effectively.

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How Can UPS Help?

At UPS, we work regulatory with our customers to assess new risks and opportunities in their supply chains based on the evolving regulatory landscape. Our priority is to minimize disruption to your business operations and provide the expertise you need to manage these changes confidently. We have various logistics solutions to minimize disruptions and ensure compliance with evolving regulations.

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