2025 US Tariffs and Their Impact on Global Trade

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.

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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.

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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.

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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.

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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. These costs often pass through the supply chain, often leading to higher prices for businesses and consumers.

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Who Pays the Tariffs?

While tariffs are imposed on foreign goods, the financial burden typically falls on domestic consumers. Importers pay tariffs to US Customs and Border Protection upon the goods' entry. These additional costs are typically passed along the supply chain, increasing prices for businesses and consumers.

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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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