US tariffs on imports of Chinese-origin products went into effect at 12.01am ET on February 4, 2025, with 10% duties being imposed on all imports of Chinese-origin goods. The executive order implementing the tariffs directs that in addition to imposing 10% tariffs on all goods of Chinese origin, low-value shipments of Chinese-origin goods are no longer eligible for duty-free entry under Section 321 of the Tariff Act of 1930 (19 USC 1321), significantly impacting e-commerce shipments from China. Low-value shipments that were previously eligible for duty-free entry with limited reporting requirements will now be subject to Section 301 duties, these additional 10% duties, and general duties and will need to be entered either informally or formally. The executive order also prohibits obtaining refunds of the additional duties through duty drawback.
The executive order provides a narrow exemption for articles that were loaded onto a vessel at the port of loading or in transit on the final mode of transport prior to entry into the United States before February 1, 2025.
President Trump has stated that the 10% additional tariffs (which are in addition to general duties and Section 301 tariffs already in effect for a broad range of Chinese-origin products) are an “opening salvo” and that the tariffs are likely to increase. China has responded to the imposition of these tariffs by imposing tariffs on certain US-origin products and announcing investigations and sanctions against certain US companies. China’s Finance Ministry announced it will impose 15% tariffs on imports of coal and liquified natural gas from the United States, and 10% duties on American crude oil, agricultural machinery, and certain cars. According to the announcement, the tariffs will go into effect starting February 10, 2025. Meanwhile, China’s Commerce Ministry is also introducing export controls on a range of products and technologies related to specific critical minerals, including tungsten, tellurium, ruthenium, molybdenum and ruthenium.
