Facing US 125% Reciprocal Tariffs and Exemption Cancellations, How Can Cross-border E-commerce Reduce Logistics Cost Pressure?

Starting February 4, 2025, U.S. Customs and Border Protection (CBP) will implement new tariff measures on imports from mainland China and Hong Kong, primarily including the elimination of the $800 de minimis exemption and the addition of a 10% supplemental tariff, creating significant challenges for cross-border e-commerce and logistics industries. Recent news indicates that on April 2, 2025, U.S. President Trump signed an executive order implementing a global "Reciprocal Tariff" policy, effective April 9, further altering the global trade environment. This article will analyze the key points of both policy phases and provide practical coping strategies and tariff calculation methods to help businesses minimize losses.

 

New U.S. Import Tariff Policies (Updated Feb 8, 2025)

1. Elimination of $800 De Minimis Exemption

Policy Change: The previous advantage of duty-free status for low-value imports (De Minimis) under $800 and the corresponding T86 customs clearance model have been completely eliminated. 

Current Regulations: Regardless of import value, all goods must undergo formal customs declaration and pay duties.

Impact: Small-value goods (such as low-priced products or small packages) will lose their tax-exempt status, potentially leading to increased logistics costs and product prices, further compressing profit margins for cross-border e-commerce.

 

2. Additional 10% Tariff

Coverage: All imports from mainland China and Hong Kong will be subject to an additional 10% tariff on top of existing tariffs such as Section 301, 201, 232, etc.

Exempt Goods (the following categories are exempt from the additional tariff):

 - Relief or donation materials (such as food, clothing, medicine)

 - Informational materials (such as publications, video materials, artwork)

 - Certain goods shipped before February 1, 2025 (must meet relevant filing conditions)

Impact: High-tariff goods (such as textiles and electronics) will face significantly increased import costs, which may ultimately be passed on to retail prices, affecting market competitiveness.

 

If you want to learn more about U.S. tariff regulations, we recommend reading: U.S. Tariff Guide: Latest Import Tariff Regulations and Calculation Methods for 2025

 

3. Stricter Customs Clearance Supervision

Shipments from Hong Kong to the U.S. require detailed and accurate product information, including product name, declared value, quantity, HS Code, and weight. Discrepancies may result in goods being detained, returned, fined, or delayed in customs clearance, affecting logistics efficiency.

 

4. Special Rules and Restrictions

 - Foreign Trade Zone (FTZ) Regulations: Chinese and Hong Kong goods entering U.S. Foreign Trade Zones must enter under "privileged foreign status" and are subject to relevant tariff calculations.

 - No Duty Drawback Policy: The additional 10% tariff is not eligible for duty drawback, and importers must bear the full amount of taxes and fees.

 

5. T11 Simplified Declaration Replacing T86

With the cancellation of the T86 clearance model, EconomiQ(eQ) Standard will adopt the T11 simplified declaration model, applicable to shipments with a total value not exceeding $2,500 and individual item values not exceeding $250.

Process: Provide a complete cargo manifest and relevant documents, and pay taxes and processing fees; however, this does not apply to high-risk categories (such as food, medicine), and supporting documentation must be provided when inspected.

 

Global Reciprocal Tariff Policy Update (April 3, 2025)

1. Overview of U.S. Reciprocal Tariff Policy

On April 2, 2025, U.S. President Trump signed an executive order announcing the implementation of a "Reciprocal Tariff" policy for 185 countries worldwide, effective April 9, 2025. Based on each country's tariff levels on U.S. goods, the U.S. will respond with approximately half that rate. The U.S. will impose approximately 34% tariffs on imports from China; about 20% on the EU; about 24% on Japan; and about 32% on Taiwan. For more details, please refer to the article: Facing U.S. 54% Reciprocal Tariffs and Elimination of Exemptions: How Can Cross-Border E-commerce Reduce Logistics Cost Pressure?

 

2. Impacts and Challenges

Global tariff adjustments will trigger trade frictions between countries and potentially affect import costs and retail prices. Increased risks: Cross-border e-commerce and logistics industries need to respond to tariff changes across multiple countries, facing more complex customs declaration requirements and additional tax burdens. Strategic recommendations: Businesses should closely monitor further policy details, adjust pricing and cost-sharing strategies, and explore diverse markets to spread risks.

 

Strategies for Cross-Border Online Stores

1. Optimize Product Declaration and Tax Control

- Ensure accurate product declaration information, including HS Code, product value, purpose, etc., to avoid the risk of fines or detention.

- Choose appropriate declared values based on production costs rather than sales prices to reduce the tax base.

 

2. Adjust Product Pricing and Cost Sharing

- Incorporate new taxes and fees into product prices or shipping costs to maintain reasonable profit margins.

- Communicate tax issues transparently with buyers in advance to avoid future disputes.

 

3. Optimize Logistics and Supply Chain

- Utilize the T11 simplified declaration model to reduce customs clearance costs for lower-priced goods.

- Use the Fuuffy platform to quickly compare rates and efficiency of major international couriers, choosing the most cost-effective courier service to help alleviate pressure from increased taxes.

 

*Latest prices based on daily rates at fuuffy.com

 

💡High-volume users can enjoy greater discount benefits! Contact our logistics consultant now to customize your exclusive preferential logistics solution and help you save costs!

 

4. Spread Risk by Exploring Diverse Markets

Reduce dependence on the U.S. market and actively explore other tax-free or low-tariff markets (such as Southeast Asia, Europe, etc.).

 

Want to learn more about shipping from Hong Kong to the U.S.? Recommended reading: 【Hong Kong to U.S. 2025 Guide】Comparing the Cheapest and Fastest International Couriers: Rates, Time, and Restrictions

 

Fuuffy Platform Service and Fee Adjustments

In response to recent changes in U.S. import policies, the following adjustments will be made to courier services and fees for shipments to the U.S. (effective from February 5, 2025, 09:00 (Hong Kong time)):

 

1. Additional Customs Declaration Fee

Effective Date: From February 5, 2025, 09:00 (Hong Kong time).

Adjustment: A handling fee of HKD $23 will be added to each shipment from Hong Kong to the U.S.

 

2. Tariff Pre-collection Mechanism

Effective Date: Starting with goods checked in from February 5, 2025, 09:00 (Hong Kong time).

Adjustment: A 30% tariff deposit will be pre-collected (this amount will be settled based on actual U.S. Customs taxation results, using a "refund excess, collect shortfall" approach. Excess deposits will be refunded, and any shortfall must be paid additionally.)

 

3. EconomiQ Makeup Service Temporarily Suspended

The route for cosmetic products to the U.S. (eQ Makeup) will be temporarily suspended. For shipping cosmetic category items, please use Aramex, DHL, or Fedex.

 

💡 For assistance with import product classification and customs declarations, please contact Fuuffy Customer Service  for professional support.

 

How to Check Tariff Rates for Shipping from Hong Kong to the U.S.?

The process for checking tariff rates is very simple. Just follow these steps:

 

Step 1: Visit the U.S. Official Tariff Inquiry System

Open the U.S. Harmonized Tariff Schedule (HTSUS) Official Website.

 

Step 2: Enter the Product's HS Code

Enter the product's HS Code in the search box.

 

Step 3: Check the Tariff Rate

Using women's woven trousers (HS Code: 6204690310) as an example, on the results page, find 1, General (basic product tariff rate). You'll see "28.6% 1/", where "28.6%" is the basic rate. "1/" indicates additional tariffs apply.

 

If it shows "Free 1/":

"Free" indicates the product is exempt from basic tariffs.

"1/" indicates the product may still be subject to additional tariffs (such as Section 301 additional tariffs). Hover your cursor over "1/" to see applicable additional tariff provisions.

 

If it shows "20.7¢/kg + 10.4% 1/":

"20.7¢/kg" means a tariff of 20.7 cents per kilogram.

"10.4%" means an additional 10.4% tariff on the product value.

"1/" similarly indicates possible additional tariffs (such as Section 301 additional tariffs), requiring further inquiry into relevant provisions.

 

Step 4: Check Additional Tariffs

If your product search shows "1/", hover your cursor over "1/" to see a pop-up, such as "See 9903.88.15".Enter 9903.88.15 into the search box, and the system will display detailed information about that provision.

 

According to provision 9903.88.15, the product is subject to a 7.5% Section 301 additional tariff.

 

Step 5: Calculate the Total Tariff Rate

Using women's woven trousers (HS Code: 6204690310) as an example:

Basic Tariff Rate: 28.6%

Section 301 Additional Tariff: 7.5%

0204 Additional Tariff: 10%
Total: 28.6% + 7.5% + 10% = 46.1%

 

If you have any questions about tariff inquiries or calculations, please don't hesitate to contact Fuuffy Customer Service for assistance!

 

Conclusion

The implementation of the latest U.S. tariff policies, especially the elimination of the $800 de minimis exemption and the addition of a 10% supplemental tariff, poses enormous challenges for cross-border e-commerce and logistics companies. Businesses need to respond proactively, including precise customs declarations, product pricing adjustments, and logistics optimization. Meanwhile, we recommend that businesses expand their markets to reduce dependence on the U.S. market, spreading risk to achieve stable growth.

For more support, please contact Fuuffy Logistics Consultants for assistance, to obtain the latest policy response solutions and customs declaration advice!