In addition to the 10% tax on all products from China. The US have revoked the duty-free rule on small packages under $800 entering the US from China – this affects billions of goods sold by retailers like Shein and Temu. It will increase the cost to US consumer of these products, affecting $23-$46 billion worth of Chinese small parcel exports.

25% tariffs on steel and aluminium take effect on 12 March, raising global concerns over supply chain disruption.

Affected steel and aluminium products

• Most of Chapter 73, covering items such as gazebos, canopies, and similar structures
• Certain household aluminium products
• Steel and aluminium furniture (HTS 9403.20.00)
• Parts for lighting fixtures (HTS 9405.99.40)
• Stoves, ranges, barbecues, and related components (HTS 7321)
• Steel and aluminium cookware
• Aluminium doors, windows, and frames (HTS 7610.10.00)
• Parts for electric water heaters, hair dryers, and similar appliances (HTS 8516.90.8050)
• Some sporting and exercise equipment (HTS 9506, 9507).

How the Tariffs Will Apply

For products classified under Chapter 73 or 76, the 25% tariff applies to the full product value.

For products classified outside these chapters, the tariff will apply only to the steel or aluminium content, not the entire product. However, the notices do not clarify how this content value should be calculated.

The tariff applies only to products classified under the designated HTS subheadings. Items that contain steel or aluminium but fall outside these classifications will not be affected.

Cumulative Duties

The 25% tariffs will be applied in addition to any other applicable duties. For example, a steel cookware item classified under HTS 7323.93.0045 will face:

• A standard MFN duty of 2%
• 25% Section 232 tariffs
• An additional 10% tariff if imported from China

Implementation Timeline

These tariffs will not take effect until the Secretary of Commerce confirms that systems are in place to collect the duties. Currently, there is no set deadline for this certification.

The tariff of 25% on all goods entering the US from Canada and Mexico have been delayed but are still in the pipeline for March.

Together, China, Mexico and Canada accounted for more than 40% of imports into the US in 2024.

 If the US proceeds with imposing tariffs, other countries will respond, and this will raise costs within the supply chain. It will ultimately be consumers who end up bearing the brunt of the costs/changes.

 Why is Trump pushing ahead with Tariffs

The objective of the US tariffs are to strengthen US domestic manufacturing, Trump is aiming for economic independence, and these are protectionist policies.

This could work for products the US can produce, for example steel, but it imports 50% of its aluminium. Therefore, if import costs rise this could lead to supply shortages, higher productions costs and a slowdown in infrastructure projects.

Achieving self-sufficiency in today’s global marketplace will be difficult if not impossible. The development of globalisation has permanently reshaped supply chains. Particularly manufacturing now depends on international cooperation, with raw materials, components and expertise spread across multiple countries.

However it is possible the tariffs are part of a strategic plan, and Trump is using them as a negotiation tactic, as seen with the recent postponement on levies against Mexico and Canada.

 Europe and the UK

Trump is considering imposing tariffs on the EU due to trade deficits. He hasn’t yet included the UK. Discussions are ongoing.

 

If the US were to impose a blanket tariff on UK exports to the US, it would affect around £60bn of goods.

How this affects the UK – Apart from the effect on global supply chains, if currencies drop, British exports will become more expensive.

How this will affect international shipping and freight transport

Shipping rates may fluctuate as carriers adjust to new volumes and trade patterns.

We recommend companies importing and exporting monitor their supply chain costs and transit times – new routes, rates and modes of transport may be an option to maintain competitiveness.

Costs will increase for cross border trade. Companies exporting goods to the US may face higher duties, while U.S. exporters might encounter retaliatory measures from affected countries.

New destinations or nearshoring might be a way to mitigate rising costs.

Speak to one of our team today for the best shipping solutions.

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E-mail: sales@tps-global.com