Tariff Talk

China tariffs continue to dominate headlines, spark social media debate, and drive business leaders to reassess forecasts and supply chain strategies. This week, the China reciprocal tariff rate was reduced to 10%, prompting importers to scramble for cargo space and seek clarity on how this change affects their freight already in transit.

The White House has suspended the executive orders that escalated China tariff rates from 84% to 125%, rolling back the IEEPA reciprocal tariffs to their original 10% rate. Per the executive order language, this revised rate applies to imports arriving after midnight on May 14. Because we’ve reverted to the initial guidance, there are no implications for new in-transit cargo—all goods not yet arrived or cleared will now be assessed at the 10% rate. Notably, this rollback is not retroactive, creating a clear six-week window where significantly higher tariffs were in effect.

Keep in mind: the 10% tariff is in addition to the general duty rate, the 20% fentanyl-related IEEPA tariff, and any applicable Section 301 or 232 duties.

To further ease pressure on China imports, starting at 12:01 a.m. EDT on May 14, postal shipments of goods valued at $800 or less arriving from China or Hong Kong via international mail will be subject to either a 54% ad valorem duty or a flat $100 per package. This is a drop from the 120% or $100-per-shipment fee previously triggered by the April halt to de minimis privileges (scheduled to jump to $200 in June). The reduced 54% rate offers temporary relief to the direct-to-consumer e-commerce model.

As this 90-day tariff pause takes effect, speculation is already swirling: What happens on Day 91? Will rates bounce back to the 34% “Liberation Day” level, or is 10% the new normal?

OCEANAIR is closely monitoring trade developments and their impact on tariffs. For the latest updates, follow us on social media or contact our Compliance team at compliance@oceanair.net with any questions.