Beginning February 3, 2025, the U.S. government began imposing a series of periodically escalating tariffs on goods originating from China, which collectively added up to 145%, which includes a tariff of 20% to compel China to act against the shipment of fentanyl to the United States.
Effective no later than Wednesday, May 14, 2025, the reciprocal tariffs imposed on goods originating in China under the authority of the International Emergency Economic Powers Act (IEEPA) will be lowered from 125% to 10% for a period of 90 days. However, a tariff ranging from 7.5% to 100% on China-origin goods imposed under Section 301 of the Trade Act of 1974 since 2018 will remain in place, as will all Section 232 tariffs of the Trade Expansion Act of 1962 (25%) and IEEPA tariffs levied in response to the fentanyl national emergency (20%).
Reduced tariff rates cannot be retroactively applied to the date when the higher tariff rate was launched. However, these lower tariffs are eligible for exceptions and for duty drawback where applicable.
In response, China too will lower its tariff rate on goods originating in the U.S. to 10%.
While this reduction in tariffs has been announced publicly by the White House, no official guidance has been provided yet to the trade community. As such, the terms and timing of this amendment are subject to change without notice.
Impact on customs bonds
Importers who have recently changed the value of your customs bond to reflect the higher duty rates associated with the 125% tariff rate are encourage you to avoid reducing the value to reflect the new 10% tariff rate. This rate is only in effect for a period of 90 days and there is no guarantee it will be extended beyond that. Attempting to apply for a higher bond again in such a short period could be challenging and take far longer.
Impact on low-value goods
Effective 12:01 a.m. ET on May 14, 2025, all international postal network items containing goods valued at or under US$800 originating in China or Hong Kong, and that are transported into the U.S., will be subject to a lower duty rate.
https://www.whitehouse.gov/presidential-actions/2025/04/amendment-to-recipricol-tariffs-and-updated-duties-as-applied-to-low-value-imports-from-the-peoples-republic-of-china/
Low-value goods that enter the U.S. through postal service will be subject to one of two methods for duty collection, which is elected by the carrier. This first method is value based, with duty owed being equal to 54% of the declared value. The second method is a per package rate of $100 per package. In addition, U.S. Customs and Border Protection (CBP) may, at its discretion, require a formal customs entry for goods entering the U.S. from China or Hong Kong through the international postal network. In the event a formal entry is required, the goods will be subject to the standard applicable duties, rather than the aforementioned 54% tariff rate or $100 package fee.