U.S. – China Trade Tariff Escalation
As of February 4, 2025, the United States has imposed a 10% tariff on all Chinese and Hong Kong-origin goods and suspended the de minimis exemption for these goods. This means shipments arriving after 12:01 a.m. ET are no longer eligible for de minimis treatment, even if the manifest was filed earlier, requiring importers to file formal or informal entries and pay all applicable duties, taxes, and fees.
In response, China announced retaliatory measures effective February 10, including a 15% tariff on coal and liquified natural gas, and a 10% tariff on crude oil, agricultural machinery, large-displacement cars, and pickups. Additionally, China launched an antitrust probe into Google, added Illumina and PVH Group (the parent company of Calvin Klein and Tommy Hilfiger) to its “unreliable entity” list, and imposed export restrictions on certain critical minerals used in high-tech manufacturing.
While tensions escalate with China, the U.S. has taken a different approach with its North American trading partners. The administration has granted a 30-day extension before implementing new trade measures affecting Canada and Mexico. The pending regulation, which will impose a 25% tariff on imported goods from both countries, remains on hold following individual agreements between the U.S. and each respective nation.
