ADDITIONAL 10% U.S. TARIFFS ON CHINA: QUESTIONS ABOUND

UPDATED March 3, 2025
Click to read the most current information about these tariffs:
https://www.greenworldwide.com/u-s-tariffs-on-china-hong-kong-canada-and-mexico-latest-updates-trade-impact/

The United States has increased tariffs on Chinese imports from 10% to 20% under a new Executive Order signed on March 3, 2025. However, important details remain unclear.

The order does not specify whether the additional tariff applies only to goods entered on or after March 4, 2025, or if it retroactively covers shipments imported since February 4, 2025. At the time of publication, no Federal Register notice has been issued, leaving importers without formal implementation guidance from U.S. Customs and Border Protection (CBP).

WHAT THIS 20% TARIFF MEANS FOR CHINA-ORIGIN IMPORTS

The previous 10% tariff on Chinese goods, effective February 4, 2025, imposed immediate changes on shipments from China and Hong Kong. Importers had to adjust compliance strategies to account for:

• Limited tariff exemptions for goods in transit before February 1, 2025, provided they arrived in the U.S. before March 7, 2025 (HTSUS 9903.01.23).
• Humanitarian and informational exemptions under HTSUS 9903.01.21 and 9903.01.22, though humanitarian aid from China did not qualify.
• The end of de minimis duty-free entry for products of the PRC, requiring full duty and tariff payment on low-value imports (currently paused).
• Foreign Trade Zone (FTZ) restrictions, forcing all China-origin goods admitted after February 4, 2025, to be classified as “privileged foreign status”, locking in duty and tariff rates at the time of admission.

The new March 3, 2025, Executive Order keeps these provisions in place but doubles the tariff rate to 20%, increasing cost pressures on importers.

UNCERTAINTY SURROUNDS THE ADDITIONAL U.S. 10% TARIFF ON CHINA IMPORTS EFFECTIVE DATE

While the tariff increase is official, there is no published guidance on when it takes effect, and importers are left with pressing questions:

Is the additional 10% tariff retroactive?

• • Will CBP apply the new tariff only to entries on or after March 4, 2025, or will it also apply to goods already imported since February 4, 2025?

How will CBP handle entries?

• • Will shipments face clearance delays?
  • Will CBP require retroactive duty payments?

SUPPLY NETWORK IMPACT & NEXT STEPS

With the 20% tariff now in place, importers should prepare for:

• Higher landed costs for affected goods.
• Potential Customs processing delays as CBP determines enforcement procedures.
• New cost considerations for FTZ and bonded warehouse operations, where duty rates at the time of admission will impact financial planning.