2025 US Tariffs and Their Impact on Global Trade

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.

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.

Tariffs are applied to all goods originating from China and Hong Kong per the Federal Register Notice.

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.

No. De minimis is suspended for all products from China and Hong Kong, regardless of the export country.

No.

No. The additional duties imposed by the Executive Order are not eligible for duty drawback.

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

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.

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.