Update on U.S. Tariff Changes and Supply Chain Impact 16/04/2025

As global trade policies continue to evolve, we would like to share an important update regarding recent changes in U.S. tariff regulations and their impact on logistics and customs procedures, particularly between China and the United States.

1. U.S. Tariff Adjustments – April 2025

The U.S. Administration has introduced a 145% tariff on Chinese imports, while maintaining a 10% tariff for most other countries. A 90-day tariff pause has been granted to all except China. In response, China has raised tariffs on U.S.-origin goods from 84% to 125%, effective 12 April.

These actions are reshaping global trade flows, and we are seeing strategic shifts in sourcing and logistics across the market.

2. Impact on China–U.S. Customs Declarations

China Customs has updated declaration procedures as follows:

• General Trade Exports to the U.S.:
  • Business as usual. No changes to documentation or declaration procedures.
• Processing Trade (Manual Book Declaration):
  • Direct export via sea, air, or land remains valid even if products contain U.S.-origin materials.
  • However, exports via bonded warehouses (incl. free trade zones) containing U.S.-origin inputs are not currently permitted by Chinese Customs. To avoid delays, we recommend direct port exports.
• U.S. Imports to China:
  • Operations and taxation procedures remain unchanged, though subject to updated tariff conditions.

3. Supplier and Shipment Trends

• Booking Cancellations & Redirections:
  • Several major customers have cancelled all China-origin freight bookings to the U.S. in response to the tariff escalation.
  • Others have suspended new U.S.-bound bookings, opting to redirect in-transit orders to alternative regions, including Europe.
  • Some customers have delayed new bookings by several weeks, while continuing with shipments already enroute.
  • Overall, new bookings from China to the U.S. have declined by approximately 50% since 11 April.
• Plans for Finished U.S.-Bound Stock:
  • The majority of suppliers are holding finished goods at origin, monitoring tariff developments before proceeding.
  • A number of shipments are being re-routed to Europe, tapping into existing warehousing or customer demand in the region.
  • Some buyers have negotiated discounts on in-transit shipments to help absorb increased landed costs.
  • Discounting strategies are being selectively used to encourage U.S. customers to accept delivery of goods despite the tariff hike.
  • At the same time, there is a notable shift toward Southeast Asia as a re-export hub, allowing suppliers to route Chinese-origin goods through countries benefiting from temporary tariff relief.

These responses reflect a more cautious and strategic stance, with suppliers reassessing routes, warehousing, and customer terms to manage risk and cost exposure in real-time.

4. Port & Carrier Adjustments

• No major congestion reported in key European ports, with only minor delays in Antwerp and Gdynia.
• Carriers heavily reliant on Chinese-built vessels (e.g., COSCO, CMA) are expected to reallocate capacity to non-U.S. trades, which may affect vessel availability.

How Ligentia is helping customers to remain resilient

Tariff Adjustments

As a global business we are in constant communication with local Ligentia experts to ensure we have accurate information and understand the impact of shifts in sourcing and logistics across the market.

Processing Trade

We will continue to support our customers to maintain business operations with minimal disruptions or delays, helping them to operate as closely as possible to normal conditions. Where possible we recommend businesses should utilize direct port exports to avoid delays.

Supplier and Shipment Trends 

Our experts are actively engaging with Chinese and U.S. authorities to monitor compliance requirements, enabling us to relay any changes to our customers and prepare them. We are also collaborating closely with carriers and partners to effectively manage capacity shifts and mitigate potential challenges.

Plans for Finished U.S.-Bound Stock:

As we are observing numerous suppliers holding finished goods or redirecting shipments to Europe, we are supporting our customers with contingency planning, route optimization, and supply chain visibility. 

Some suppliers have adopted cautious and risk averse solutions, we are working to help our customers adopt a strategic solution that suits their needs.

U.S. Customs Declarations

Our expert Ligentia Customs Bureau provides a comprehensive customs health check, helping customers ensure compliance and optimize costs across border trade.

Key services include validating tariff codes (HS codes), identifying opportunities for duty reclassification to reduce exposure, and offering guidance on new trade regulations. This ensures our customers avoid overpayment of duties, mitigate delays or penalties due to misclassification, reducing landed costs and proactively managing trade risks.

If you have any questions regarding the above, or would like further guidance, please reach out to your dedicated contact at Ligentia. 

Disclaimer: The information provided in this communication is accurate at the time of issue. However, circumstances may change, and the information may no longer be applicable or accurate in the future. We recommend verifying the details directly with us if you require support at a later date.