TRUMP ADMINISTRATION TRADE ALERT – IMPORTS | |
HEADLINE | Additional 10% Tariffs on Products of China and Hong Kong (Total of 20% tariffs from Feb. 1 EO) |
DATE | March 3 2025 |
AGENCY | Department of Homeland Security, Customs and Border Protection (CBP); Trump Administration |
STATUS | Additional 10% tariffs have been imposed on goods from China and Hong Kong (totaling 20% duties from Feb. 1 EO), entered or withdrawn from warehouse on March 4, 2025, (unless one proves that the goods were shipped prior to February 1, 2025) |
EFFECTIVE DATE | March 4 2025, 12:01 a.m. Eastern Time, except for items that were loaded onto a vessel at the port of loading, or in transit on the final mode of transport prior to February 1, 2025 and entered or withdrawn from warehouse for consumption before March 7, 2025. |
BACKGROUND | On February 1, 2024 President Trump issued Executive Order 14195 imposing 10% duties on all goods from China and Hong Kong, effective February 4, 2025. |
DETAILS | President Trump amended his previous Executive Order to increase tariffs on products from China and Hong Kong from 10% to 20% citing that China “has not taken adequate steps to alleviate the illicit drug crisis through cooperative enforcement actions.” As a result of this and the actions taken against China in President Trump’s first term, most goods from China now have a minimum effective total duty rate in excess of 45%. This Executive Order has immediate effect. Therefore, all goods entered or withdrawn from warehouse for consumption after 12:01 am ET on March 4, 2025 will be subject to these duties. CBP Cargo Systems Messaging Service (CSMS) No. 64299816 published on March 3 provided additional guidance regarding the implementation of the new duties on products from China and Hong Kong, including: • EFFECT ON OTHER DUTIES. The additional duties apply in addition to all other applicable duties including antidumping and countervailing duties, Section 301 duties, Section 232 duties, taxes, fees, exactions, and charges other than previously announced exceptions for donations, information materials, and personal items in accompanied baggage. • CHAPTER 98. The additional duties will not apply to goods for which entry is properly claimed under a provision of Chapter 98 of the tariff schedule other than goods entered under heading 9802.00.80 (the additional duties apply to the value of the article assembled in China and Hong Kong, less the cost or value of such products of the United States) and subheadings 9802.00.40, 9802.00.50, and 9802.00.60 (the additional duties for these goods apply to the value of repairs, alterations, or processing performed (in China and Hong Kong)). • FOREIGN TRADE ZONE. For foreign trade zone products subject to each order, articles that are products of China or Hong Kong, other than “domestic status” eligible products defined in 19 CFR 146.43, entered after the effective date must be admitted as “privileged foreign status” as defined in 19 CFR 146.41, and upon entry for consumption will be subject to the increased duties in effect at the time of admittance into the foreign trade zone. • DRAWBACK. No drawback program relief (19 CFR parts 190, 191) is available with respect to the duties imposed. • DE MINIMIS. The de minimis exemption for imports valued under $800 (an administrative exemption from duty and certain taxes at 19 U.S.C. 1321(a)(2)(C)) continues to be available for articles that are otherwise eligible for the exemption, including eligible articles sent to the United States through the international postal network. China has announced that it will be imposing retaliatory tariffs of 15% against imports of chicken, wheat, corn, and cotton, and 10% against sorghum, soybeans, pork, beef, aquatic products, fruits, vegetables and dairy products. |
BASIS | Executive Order 14195 and authorities incorporated by reference. |
HTS/ PRODUCTS | The initial 10% tariffs were implemented under HTS subheading 9903.01.20, which was in effect from Feb. 4 – March 4 The now-20% tariffs are implemented under 9903.01.24, effective March 4, 2025 at 12:01 AM |
COUNTRY | China |
CITE | Further Amendment to Duties Addressing the Synthetic Opioid Supply Chain in the People’s Republic of China – The White House Unpublished CBP Notice– Scheduled to be published in the Federal Register on March 6, 2025 Announcement of the Customs Tariff Commission of the State Council on Imposing Additional Tariffs on Certain Imported Goods Originating in the United States CSMS # 64299816; Related CSMS: 63988468, 63992482, 64045612, 64082249, 64018403, 64235342, 64196888 |