Last night, U.S. President Donald Trump announced a series of new tariffs and confirmed the date when Chinese goods will no longer enjoy minimum exemptions.
On what Trump referred to as “Liberation Day,” he announced a 10% tariff on imports to the country, with higher tariffs for certain countries.
A chart showing the tariff changes by country indicates that goods imported from China will be subject to a 34% tariff, 20% for the European Union, 46% for Vietnam, and 32% for Taiwan. These tariffs will take effect on April 9, while the general tariffs will be effective from April 5, leaving countries with little time to negotiate with the United States.
According to Flexport, the tariffs on China are levied based on Section 301 tariffs, a 20% tariff implemented in early March, and the U.S. baseline tariff.
Last week, the Trump administration also announced a 25% tariff on automobiles starting today, along with a 25% tariff on auto parts, which will take effect in May.
Previously, he imposed a 25% tariff on all imports from Canada and Mexico that were not covered by the North American Free Trade Agreement.
Market analysts from Xeneta indicated that the tariffs are not expected to immediately lead to an increase in air freight rates, but might result in a decline in demand as higher prices dampen consumer demand.
Niall van de Wouw, chief air cargo officer at Xeneta, stated, “By the end of March, we saw an increase in air freight prices from China and Europe to the U.S., but nothing alarming. A more likely scenario is that if the tariffs lead to higher prices and reduced consumer demand, air freight prices will drop.”
“If anti-American sentiment rises among consumers affected by the tariffs, we may also see a decline in demand for U.S. exports. Consumer confidence has the potential to be more powerful than the tariffs.”
“We should also take into account that as airlines begin to implement their summer schedules over the coming weeks, capacity on these routes will increase, which will also put downward pressure on rates.”
According to Xeneta, current air freight spot rates from Shanghai to the U.S. are $4.16 per kilogram, down from the peak of $5.75 per kilogram in the week ending November 10.
The spot rate from Western Europe to the U.S. is $2.16 per kilogram, down from the peak of $3.51 per kilogram in the week ending December 15.
U.S. retailers anticipate that the tariffs will impact the purchasing power of American consumers and have warned that the sudden imposition of tariffs will create problems.
The “small tax exemption” policy (T86 model) will be abolished on May 2.
David French, executive vice president for government relations at the National Retail Federation, stated, “Tariffs are a tax paid by American importers, which will be passed on to the end consumers. Tariffs will not be paid by foreign entities or suppliers.”
“More importantly, the immediate implementation of these tariffs is a daunting task that requires millions of U.S. businesses that will be directly affected to be notified and adequately prepared in advance.”
At the same time, Trump also signed another executive order to close loopholes in the tariff system, announcing the formal cancellation of the “small tax exemption” policy (T86 model) for goods valued at under $800 from China, effective May 2.
Previously, this policy had briefly been suspended in early February due to overwhelming pressure on the U.S. customs system, leading to a backlog of millions of packages, prompting the Trump administration to announce a suspension of enforcement on February 7.
The executive order states that after the U.S. Secretary of Commerce notifies that sufficient systems are in place to collect tariff revenue, Trump will terminate the minimum exemption treatment for goods originating from mainland China and Hong Kong starting at 12:01 AM Eastern Time on May 2, 2025.
The executive order specifies that all mail containing goods valued at $800 or less that qualify for minimum exemption and sent through the international postal network will be subject to a 30% tariff on their value or $25 per item ($50 per item after June 1, 2025). This will replace any other tariffs, including those specified in previous orders.
The cancellation of the small exemption policy also means that the T86 customs clearance model will no longer be in effect, and sellers may face longer processing times, higher declaration costs, and more complicated procedures. This indicates that Chinese cross-border e-commerce will face a confirmed surge in tariff costs, marking the official end of the era of small tax exemptions.
The impact of the cancellation of the minimum tax exemption for e-commerce volumes is controversial. In recent years, this exemption has driven the prosperity of air freight.
Some anticipate that this will have a significant impact on the market, while others believe that these goods are already inexpensive, and a few extra dollars in price won’t make a big difference.
However, others express that the need for customs involvement in handling parcels will
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Post time: Apr-08-2025
