Tariff Talk

Globally, tariff adjustments and an increased focus on import and export enforcement are shaping trade dynamics. As importers and exporters anticipate the impact of the new administration on duties and trade relations, several changes are already underway for 2025, alongside updates implemented in late 2024.

The Harmonized Tariff Schedule underwent its routine annual update, effective January 1. These changes primarily affected fruits, vegetables, and chemicals, introducing new 10-digit statistical classifications.

Three products saw planned increases in their Section 301 duties on imports from China. Semiconductors rose from 25% to 50%, rubber medical gloves increased to 50%, and disposable textile face masks jumped from 7.5% to 25%. Both types of gloves are set for further increases on January 1, 2026.

On January 11, U.S. Customs and Border Protection (CBP) will fully implement new daily thresholds for the de minimis rule. Importers can no longer use Section 321 privileges for aggregated imports exceeding $800 per day.

Phase VII of the Lacey Act took effect on December 1, requiring declarations for all items previously unflagged for plant products under the Harmonized Tariff Schedule, except those made entirely of composite materials. This change significantly impacts furniture, essential oils, sporting goods, housewares, tools, boats, vehicles, and cork. Importers must now provide declarations identifying the species of each plant used in manufacturing. Suppliers should be prepared to furnish this information.

In the EU, new reporting measures for the Carbon Border Adjustment Mechanism (CBAM) require tracking the carbon impact of imports. Additionally, new rules prohibit placing products on or importing them into the EU unless they are certified as “deforestation-free.” The EU has also updated its Combined Nomenclature to simplify goods classification with streamlined terminology and digitization enhancements.

China imposed new tariffs on 8,960 items, effective January 1. Many were increases to existing tariffs, while others targeted new items such as syrup and sugar mixes, vinyl chloride, and battery separators, reflecting domestic demands.

OCEANAIR will keep clients informed of regulatory changes throughout 2025. As always, our account managers and compliance teams are available to address any questions.