US Tariff Updates (Updated on Apr 15, 2025) & Their Impact on E-commerce

This article provides US tariffs updates, their implications, and actionable steps to adapt

Summary of Tariff Changes 

Date Event US Tariff on China Note
Apr 9, 2025
Effective May 2, 2025, the ad valorem duty rose from 90% to 120%, and the per postal item duty increased from $75 to US$100 , with a further increase to US$200 on June 1, 2025.     
April 9, 2025
US increases to 125%  145% 125% plus existing 20%
April 8, 2025
US announces increase to 84% on China
104%  (effective April 9)
In response to China’s retaliation,  84% plus existing 20%.
April 8, 2025
An amendment published. Effective May 2, 2025, the ad valorem duty rose from 30% to 90%, and the per postal item duty increased from US$25 to $75 , with a further increase to US$150 on June 1, 2025. 
 
 
April 2, 2025
US announces baseline and reciprocal tariffs. De minimis value will be removed from 2nd May 2025
54%  (effective April 9)
34% plus existing 20%
April 2, 2025
US announces removal of De Minimis Exemption on 2nd May 2025
 
 
April 2, 2025  US announces that, starting May 2, 2025, shipments valued at US$800 or less from China or Hong Kong will incur a duty of either 30% of their value or US$25 per item.
 
 

Implications for B2C Shipments valued under US$800

Arriving US before May 2: The de minimis value will apply, and no tax will be charged.

Arriving US on or after May 2: Duties will be levied at 120% of the item's value or US$100 per item, whichever is higher.

Arriving US on or after Jun 2: The duty will increase to 120% of the item's value or US$200 per item, whichever is higher.

 
Implications for Shipments valued over US$800
 The recent tariff hikes significantly increase the duty payable. As of April 11, 2025, the total US tariff on Chinese imports is at least 145%, comprising:
  • Standard Tariffs: These vary by product category, typically between 0% and 30%, based on HS codes. For example, electronics might face 7.5%, while apparel could be 15%.
  • Additional Tariffs: Recent executive orders have layered additional duties at 145% on April 9, 2025.

This means for shipments over $800, the total duty is the standard tariff plus at least 145% additional tariff. For instance, a product with a 7.5% standard tariff would now face a total of approximately 152.5% (7.5% + 145%).

Spaceship Solutions Update: 

We’re committed to helping you navigate this and actively developing potential solutions to address the challenges posed by the new tariff rates on B2C shipping

1. [New] Spaceship Air Tax Inclusive - to be launched by 17 Apr, 2025

This solution is designed to offer customers a fixed total cost for their shipping needs. In addition to the freight charges, Spaceship Air Tax Inclusive will impose an additional Duties and Taxes Handling fee of USD 4 per kilogram. Consequently, the total landed cost will be calculated as the sum of the Freight charge and the Tax Handling fee. This approach aims to provide sellers with clearer and more predictable shipping costs when entering the U.S. market, alleviating the uncertainty associated with fluctuating tax rates.  The shipping terms and limitations , except tax handling,  will align with the Spaceship Air Economy service. This solution is exclusively available for exports from Hong Kong.

2. [New] Spaceship Air Tax Prepaid - to be launched on the week of Apr 20, 2025

This solution will facilitate the pre-collection of duties and taxes at a rate of 160% based on the declared value of the shipment. The tax amount will be adjusted in accordance with the prevailing tariff policies and will be updated as necessary. Our system will offer real-time quotations for the total prepaid tax. Additionally, should there be an upward adjustment to the prepaid rate based on the shipment's arrival date at the Spaceship Warehouse, Spaceship will implement a charge-back to account for the difference. The shipping terms and limitations , except tax handling,  will align with the Spaceship Air Economy service. This solution is available for exports from China and Hong Kong.

3. Spaceship Air Cosmetics -redirect shipments through South Korea to the U.S. 

For products not manufactured in China or Hong Kong, including cosmetics, we will redirect shipments to South Korea before shipping them to the U.S. This method will allow us to apply the de minimis value, potentially reducing tariffs on lower-value items. It is important to be aware that this method may result in an additional transit time of 2 to 3 days on top of the standard 7 to 12 days required for shipping. The shipping terms and limitations remains unchanged. This solution is exclusively available for exports from Hong Kong.

4. Suspension of Spaceship Air Priority, Spaceship Air Economy and Spaceship Air Standard Solution into US - effective on Apr 18, 2025

The suspension is being implemented in response to forthcoming regulatory changes that will affect the feasibility of these services. We kindly ask you to modify your shipping method and update your Shipping Automation Rule by 11:59 PM on April 17, 2025. For any shipments submitted to Spaceship Warehouses on or before April 22, 2025, we will maintain the processing and delivery of those orders according to the existing Spaceship Air service standards.

5. U.S. Fulfillment Warehouse

We have established a fulfillment center in the U.S. can allow sellers to store inventory locally and fulfill orders from within the country.

What You Should Prepare?

1.Proof of Product Origin:
For a product is not made in China or Hong Kong, the shipper should accurately declare the country of origin as the actual country where the product was manufactured, not China or Hong Kong, to comply with U.S. Customs and Border Protection (CBP) regulations.
If customs challenges the country of origin, the shipper needs to provide clear documentation to prove the product’s origin. Here’s what you should prepare:
  • Certificate of Origin (CoO):
    • An official document issued by the exporting country’s chamber of commerce or relevant authority, stating the country where the product was manufactured. For example, if the product was made in Vietnam, the CoO should explicitly state Vietnam as the origin.
    • Ensure the CoO is signed and notarized, as required by CBP.
  • Manufacturing Declaration:
    • A document from the manufacturer or supplier detailing the production process, including where the product was made, what processes occurred, and the origin of key components. This helps demonstrate that the product underwent “substantial transformation” in the claimed country (per CBP’s “substantial transformation” test, where a product’s name, character, or use changes fundamentally).
  • Supplier Invoices and Purchase Orders:
    • Invoices from the supplier in the country of origin (e.g., Malaysia, Thailand) showing the product was sourced from there, not China. These should include product descriptions, quantities, and the supplier’s location.
    • Purchase orders matching the invoices reinforce the supply chain trail.
  • Labeling Compliance:
    • Ensure the product itself is marked with the correct country of origin (e.g., “Made in Vietnam”) per CBP’s marking requirements (19 CFR §134). Incorrect labeling can lead to holds or fines.
This request is more commonly made by Express Couriers (e.g., FedEx or UPS) compared to Economy Couriers (e.g., Spaceship Air).
 
2. Provide the MID (Manufacturer Identification Code) and 10-digits HTS (Harmonized Tariff Schedule) code

To simplify your U.S. import process, follow these guidelines:

  • Provide Accurate Codes: Always include the Manufacturer Identification Code (MID) and the 10-digit Harmonized Tariff Schedule (HTS) code for each shipment. This helps you avoid costly delays and ensures compliance with Customs and Border Protection (CBP) regulations.
  • MID Requirement: The MID is required only for Express Courier services. If you’re using Spaceship Air, you do not need to provide this code.
  • Finding the Right HTS Code: To find the correct 10-digit HTS code, visit the US International Trade Commission’s HTS database at hts.usitc.gov. Using the correct code is essential, as incorrect classifications can result in penalties or delays at customs.
For additional guidance, please refer to this link.


3. Review Shipping Strategies
    • Courier Choices: Major couriers like FedEx, UPS, and DHL will apply the new B2C tariffs for postal items, which are 120% of value or US$100 per item , whichever is higher, from May 2, increasing to US$200 per item on June 1, 2025. Be aware of Delivered Duty Paid (DDP) handling fees, which can add US$6-$15 per shipment depending on the courier, increasing overall costs. 
    • Timing Shipments:
      • To avoid the impact of the new tariffs, it is advisable to ship your packages using FedEx, UPS, or DHL no later than April 21, 2025, ensuring that they arrive in the U.S. before the implementation date of May 2, 2025.
      • To avoid incurring the new tariffs, please create Spaceship Air label by April 17, 2025, or ensure that they are arrived at our warehouse no later than April 22, 2025, to guarantee arrival in the U.S. before May 2, 2025.
      • The Chinese Labor Day holiday (May 1-5) may cause a surge in shipping volumes, potentially leading to delays or higher freight rates, so early action is critical.
4. Update Your Shipping Automation

Given the current dynamic situation, we are diligently working to deliver new solutions to replace Spaceship Air. This involves product development and adjustments to the tax pre-collection process, so we will need some time before launching to the market.

On the evening of April 17, we recommend that you update or temporarily disable US related shipping rules. After the long holiday, there may be changes in tariffs that require necessary adjustments.  Please remember to think carefully when shipping with FedEx and UPS, as they require more information and will follow the small parcel tariff, applying a minimum tax for shipments valued at $800 or below. If this option is not feasible for you, we suggest removing FedEx or UPS from the "Courier Group" or "Shipping Automation Rule". 

 

 

Last Update:15 Apr 2025