Latest U.S. Tariff Updates 2025: Impact on Shipments from China, Hong Kong, Canada & Mexico

Starting 4 February 2025, significant U.S. regulatory changes will impact shipments from China and Hong Kong. This means businesses importing goods from these regions must prepare for higher costs and longer processing times. The removal of De Minimis (duty-free entry under $800) and additional tariffs mean stricter compliance requirements and higher costs for businesses importing into the U.S.

At Couriers & Freight, we closely monitor these developments and work with our carrier partners so that our customers can stay informed and prepared.

May 2025 Update on U.S. Tariff Changes on Shipments from China and Hong Kong

The U.S. government has introduced several key updates to its trade policy that will affect shipments from China, Hong Kong, Canada, and Mexico. Here's an overview of the latest developments:

De Minimis Exemption Ends for China and Hong Kong

Previously, items valued under $800 from China and Hong Kong could enter the U.S. duty-free. However, from 2 May 2025, the U.S. will remove this de minimis exemption for all goods, regardless of the shipment's origin, with the only exception being goods sent via the postal network.

All shipments from the specified countries will require formal customs clearance and be subject to applicable duties. According to the U.S government, this move is designed to close a loophole that allowed certain sellers to bypass customs checks.

While duty-free entry remains for low-value imports from most other countries, it could be phased out in the future, depending on improvements to the U.S. customs and revenue collection systems.

Increased Tariffs on Chinese Imports

Since 10 April 2025, the U.S. has raised reciprocal tariffs on imports from China, Hong Kong, and Macau to 125%. This escalation from the previous 84% tariff is part of ongoing trade tensions and is expected to impact a broad range of jobs.

The extra tariffs that were planned for products coming from other countries have been put on hold for 90 days, or until 9 July 2025. However, the 10% general tariff that began on 5 April 2025 is still in effect during this time. So importers still have to pay the 10% tariff on affected goods.

Exemptions for Specific Products

Certain goods are from the new U.S. reciprocal tariffs. These include: 

• Humanitarian donations and informational materials protected under U.S. law (50 USC 1702(b))
• Products already subject to Section 232 tariffs, such as steel, aluminium, and auto parts 
• Copper, pharmaceuticals, semiconductors, lumber, bullion (precious metals), and energy or minerals that are not available within the U.S.
• Goods that may be targeted by future Section 232 tariffs 

These exemptions were made to protect critical industries and avoid disrupting the supply of essential or strategically important goods. The goal is also to ease the burden on U.S. tech companies and consumers.

The new U.S. tariffs are already impacting global trade and consumer pricing. Chinese e-commerce giants like Shein and Temu have raised their prices by as much as 91% to offset the rising import costs. 

Meanwhile, the broader economic fallout is becoming clear as ports are expecting fewer shipments. Businesses in Australia are also feeling the strain of the tariffs, causing higher costs and growing uncertainty in the market.

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5 Tips to Avoid Customs Delay

Here are five practical tips to reduce the risk of your goods being held up at the border:

Tip #1: Provide Complete and Accurate Documentation

Always include a clear commercial invoice with full product descriptions, HS codes, values, and the reason for export. Incomplete or vague paperwork is one of the most common causes of customs delays.

Tip #2: Use Recognised and Reliable Couriers

Partner with established freight forwarders or courier services experienced in navigating international customs processes. They can help flag issues early and guarantee that your paperwork meets local requirements.

Tip #3: Label and Package Items Clearly

Correctly label and seal your packages before sending them out for shipment. Add the recipient’s details and any required documentation attached to the outside. This helps customs officers process your shipment quickly and reduces the chance of misrouting.

Tip #4: Be Aware of Import Restrictions and Duties

Check the destination country’s import regulations before sending your goods. Items restricted or requiring extra licences (like food, electronics, or medical goods) can be held up without proper authorisation.

Tip #5: Respond Promptly to Customs Queries

If customs authorities request more information or clarification, respond quickly. Delayed responses can hold up your shipment unnecessarily and may result in extra storage fees or returns.

Key Takeaways for Shippers

• China & Hong Kong SAR China: No more De Minimis (duty-free) entry. Meaning all shipments with China and Hong Kong SAR China listed as the country of origin now require formal customs clearance, and higher tariffs apply.
• Reciprocal Tariffs: The reciprocal tariffs applicable to China, Hong Kong SAR China, and Macau SAR China have increased to 125%, while the individualised tariffs for items from the rest of the world have been suspended for 90 days until July 9, 2025, except for the general 10% tariff implemented on April 5, 2025.
• New 10% IEEPA Tariff: In addition to General and Section 301 duties, shipments from China and Hong Kong will now incur an extra 10% tariff.
• Stricter Customs Requirements: Shipments valued over $250 must include complete and accurate commercial invoices, HTS codes, and consignee tax IDS.
• Potential Delays: Increased customs scrutiny could lead to longer processing times.

What’s Changing for Shipments from Canada & Mexico?

In addition to the new import regulations affecting China and Hong Kong, the U.S. has also updated its tariffs for products originating from Canada and Mexico:

• Shipments from Canada: A blanket 25% additional tariff is being imposed on all other products originating from Canada, except for energy and energy resources, which are subject to a 10% tariff. 
• Shipments from Mexico: Mexico is facing a similar 25% additional tariff without the reduced rate for energy and energy resources. 

Additionally, the U.S. has implemented an executive order preventing the “stacking” of tariffs on goods from Canada and Mexico. This means that goods subject to Section 232 tariffs on aluminium and steel won’t also be subject to Section 232 tariffs on automobiles and auto parts, and vice versa.

The executive order is retroactive. Affected shippers can request a refund from U.S. Customs and Border Protection for applicable tariffs.

3 Things You Should Do Now

1. Assess Your Supply Chain – If sourcing from China, Hong Kong, Canada, or Mexico, consider alternative strategies to mitigate tariff costs.
2. Prepare for Customs Compliance – Ensure all documentation is accurate to avoid clearance delays.
3. Stay Ahead of Changes – Work with our logistics experts to optimise shipping routes, manage costs, and ensure a seamless transition into the new regulatory landscape.

How Couriers & Freight Can Help

At Couriers & Freight, we understand that regulatory changes can disrupt global supply chains. With our expertise and industry experience, we help businesses stay compliant, optimise logistics, and reduce disruptions.

Contact us today to discuss how we can help you navigate these changes and keep your business moving forward.

Stay Ahead of U.S. Tariff Changes

Avoid shipping disruptions to the U.S. Save money and minimise delays with expert logistics support from Couriers & Freight.

Get a Quote Now