In response to the US tariff increase applied to Chinese imports throughout the week, China has increased their own tariff rate to 125% on US exports to their country. The move marks a further worsening of trade relations between the two nations, representing a stark contrast with both of their approaches to the rest of the world.

A reminder that the 125% tariff imposed by the US on Chinese goods is in addition to:

• The previously implemented 20% IEEPA Fentanyl related tariffs introduced in February.
• The Section 301 tariffs brought in by the Trump administration in 2018. Many goods that have previously been excluded from these 301 tariffs, are set to have their exclusions expire in May 2025.

The Woodland Brokerage team are on hand to offer advice at this time, including performing draft customs entries to give you an indication of your latest tariff costs. Furthermore, our compliance team can provide guidance on navigating the complex regulatory landscape, ensuring your business remains compliant with all applicable trade laws.

We would also advise familiarizing yourself with your customs bond arrangements – you can find the basics here.

Please contact us for a more thorough assessment of your requirements.

The United States government has announced an immediate implementation of a dual-track tariff policy. The key development is a 90-day pause on what are termed "reciprocal tariffs" for over 75 countries, accompanied by a simultaneous increase in tariffs on goods from China.  

90-Day Pause and Reduced Reciprocal Tariffs for Numerous Nations:

Effective immediately, the U.S. government has authorized a 90-day pause on "reciprocal tariffs" for a significant number of countries (over 75). During this 90-day period, a "substantially lowered Reciprocal Tariff" of 10% will be in effect for these nations. This action is reportedly in response to these countries engaging in trade negotiations with the United States on various trade-related issues and their decision not to retaliate against U.S. trade measures.  

Simultaneous Tariff Increase on Goods from China:

Concurrently, the U.S. government announced an immediate increase in the tariff rate applied to goods imported from China. This tariff has been raised to 125%, effective immediately. This decision is based on stated concerns regarding trade practices.  

Immediate Effectiveness and Ongoing Monitoring:

The 90-day pause and the reduced 10% reciprocal tariff for the majority of countries, as well as the increased 125% tariff on China, are both stated to be effective immediately.

On April 9, 2025, the Chinese government announced a significant escalation in its trade response to the latest U.S. tariff increases. An additional 50% tariff will now apply to a wide range of goods imported from the United States, bringing the total effective tariff rate to 84%.

This action follows the U.S. Executive Order on April 8, which raised tariffs on imports from China, Hong Kong, and Macau from 34% to 84%, effective April 9.

Tariff Increase:

As of April 10, 2025, most U.S. goods entering China will be subject to a combined tariff rate of 84% (34% previously imposed, plus an additional 50%).

Export Controls:

China has also extended export restrictions and blacklisted several U.S. companies, intensifying the scope of its retaliatory measures.

We understand that goods shipped from the place of departure before 12:01 AM (Beijing time) on April 10, 2025, and imported between 12:01 AM on April 10, 2025, and 24:00 (midnight) on May 13, 2025, will not be subject to the additional tariffs stipulated in this announcement.

On April 8th, 2025, the White House issued a new Executive Order that significantly increases reciprocal duties on imports from China, including Hong Kong and Macau. This action follows China’s implementation of additional tariffs on U.S. goods on April 4th.

Key Tariff Changes

Effective April 9th, 2025:

• The reciprocal duty rate on most imported goods from China, Hong Kong, and Macau will increase from 34% to 84%.
• This applies to any goods not already in transit prior to 12:01 a.m. ET on April 9th, 2025.
• Existing exemptions remain in place where previously identified.

Deminimus Tariff Adjustments (Low-Value Imports)

Starting May 2nd, 2025, further changes will impact low-value (postal or express) imports:

• Ad valorem duty rate will increase from 30% to 90%.
• Per postal item duty (May 2 – May 31): raised from $25 to $75.
• Per postal item duty (June 1 onward): raised to $150.

These changes are expected to have a significant impact on the cost of importing affected goods, especially for small parcels and e-commerce shipments.

Full Executive Order Available Here: View Executive Order

China has now responded to the trade tariffs implemented by the United States. This response includes a range of measures designed to address the US actions. The specific details of these measures are as follows:

On April 4, China announced a new wave of retaliatory measures in response to the reciprocal tariffs released by the US:

1. 34% retaliatory tariffs (equivalent to Trump’s reciprocal tariff rate against Chinese products) on all US-origin goods, effective from 12:01 on April 10, 2025, currently without any waiving or exempting mechanism.

2. Export controls on seven categories of “medium and heavy rare earth elements” and related alloys and materials, effective immediately.

3. Adding 11 US companies to the Unreliable Entities List.

4. Adding 16 US companies to the Export Control List, China’s equivalent of Entity List under the EAR.

5. Suspending export permits for 6 US agricultural producers exporting the related agricultural products to China.

6. Multiple investigations regarding antidumping and "industry competitiveness" on specific US Goods.

We will continue to monitor the US-China trade situation and provide updates as necessary. For further details or any inquiries regarding these developments, please contact your Woodland representative directly.

The U.S. government has recently announced major tariff changes impacting a wide range of imported goods. These measures include:

• A universal 10% tariff on all imports.
• Higher tariffs on specific countries with additional reciprocal duties.
• A 25% tariff on automobiles and auto parts—raising questions about whether this applies in addition to or instead of reciprocal tariffs.
• Elimination of the de minimis rules for goods from China and Hong Kong (effective May 2, 2025).
• Likely exemptions for certain goods, including books, precious metals, and essential materials.

Woodland US Brokerage and compliance teams continue to review information as it becomes available and will keep our customers updated.

1. Universal 10% Tariff on All Imports

Effective April 5, 2025, a 10% tariff applies to all imported goods, regardless of their country of origin. This broad measure aims to promote domestic manufacturing and reduce trade imbalances.

However, certain exemptions remain, which we will cover later in this update

2. Higher Tariffs on Specific Countries

Imports from certain countries will face higher reciprocal tariffs starting April 9, 2025.

Select List of Country-Specific Tariffs:

Country Tariff Rate

China 34%

Vietnam 46%

Cambodia 49%

European Union 20%

Japan 24%

India 26%

South Korea 25%

Taiwan 32%

Thailand 36%

Bangladesh 37%

Sri Lanka 44%

Pakistan 29%

Switzerland 31%

South Africa 30%

Israel 17%

The full list can be found here.

3. Additional Tariffs on Automobiles & Auto Parts

A separate 25% tariff on automobiles and auto parts took effect on April 3, 2025.

Key Points on Automotive Tariffs

• The 25% tariff applies to all imported automobiles and auto parts, regardless of origin.
• It is separate from and applies in addition to other duties.

4. May 2, 2025: Elimination of the De Minimis Exemption for China & Hong Kong

One of the most impactful changes for small parcel shipments is the elimination of the de minimis duty exemption for goods from China and Hong Kong, effective May 2, 2025.

What Does This Mean?

Previously, shipments valued under $800 could enter the U.S. duty-free under de minimis rules. This exemption will no longer apply to imports from China and Hong Kong.

Impact on Businesses

• E-commerce retailers relying on direct shipments from China will see higher costs and potential customs delays.
• Freight forwarders and brokers handling low-value shipments from China/HK must now declare and pay duties on all entries.

5. Exemptions from the New Tariffs

Despite these sweeping tariff measures, several key exemptions remain in place:

Exempt Under 50 U.S.C. § 1702(b):

• Informational materials (e.g., newspapers, films, and artworks).
• Personal communications that do not involve a transfer of value.
• Humanitarian donations (e.g., food, clothing, and medicine).

Other Key Exemptions:

• Steel, aluminum, automobiles, and auto parts already subject to Section 232 tariffs – These are governed by previous tariff measures and are not impacted by the new tariffs.
• Copper, pharmaceuticals, semiconductors, and lumber – These critical materials have been explicitly excluded from the new tariffs.
• Bullion (gold, silver, and other precious metals) – Precious metals used for investment or industrial purposes remain tariff-free.
• Energy products and critical minerals not available in the U.S. – This includes certain crude oil, rare earth elements, and other strategic minerals necessary for U.S. industries.
• Goods loaded onto a vessel at the port of loading and in transit on the final mode of transit before 12:01 a.m. eastern daylight time on April 5, 2025, and entered for consumption or withdrawn from warehouse for consumption after 12:01 a.m. eastern daylight time on April 5, 2025.

✅ What This Means for Importers:

• If your goods fall under one of these categories, they may be exempt from both the 10% universal tariff and reciprocal tariffs.
• Proper classification and documentation will be crucial to secure these exemptions.

Our brokerage team is available to help confirm exemption eligibility and facilitate compliance.

Next Steps & What This Means for Your Supply Chain

These tariff changes are expected to increase costs across multiple industries, particularly in:

✅ Consumer goods & retail – Higher prices for imported goods.

✅ Manufacturing & automotive – Increased costs for parts and finished vehicles.

✅ E-commerce & small business imports – More stringent customs enforcement.

Recommended Actions for Importers

✔ Review your supply chain – Identify exposure to new tariffs.

✔ Consider alternative sourcing – Explore suppliers from tariff-exempt regions.

✔ Work with customs brokers – Ensure compliance and proper classification.

As regulations continue to evolve, our team is here to assist with strategies to minimize disruptions and manage tariff costs effectively.

Contact us for customized support on your import operations.