A Turning Point in Global Trade
As of 12:01 a.m. EDT on April 9, 2025, the United States officially enacted a sweeping 104% tariff on a wide range of imports from China. This unprecedented escalation, confirmed by White House Press Secretary Caroline Leavitt, represents one of the most aggressive unilateral tariff hikes in modern history.
🧾 Breakdown of the New Tariff Structure
| Tariff Component | Rate | Explanation |
|---|---|---|
| Base Tariff (HTSUS) | 10% | Standard duty under subheading 9903.01.25 |
| Reciprocal Tariff | 34% | In response to China’s trade practices |
| Punitive Tariff | 50% | In retaliation to Chinese countermeasures |
| Total Tariff Rate | 104% | Cumulative effect |
These measures apply broadly to Chinese-origin products unless specifically exempted.
🔍 Regulatory Framework: Subheading 9903.01.25 Explained
The tariff hike is outlined in Annex III of Chapter 99 of the Harmonized Tariff Schedule of the United States (HTSUS). Key subheadings include:
| HTSUS Code | Product Scope | Duty Treatment |
|---|---|---|
| 9903.01.25 | Products from any country unless specified below | Applicable tariff + 10% |
| 9903.01.26 | Products of Canada (Note 2(v)(iv)) | Only the applicable subheading duty |
| 9903.01.27 | Products of Mexico (Note 2(v)(v)) | Only the applicable subheading duty |
| 9903.01.28 | Products in transit before April 5, 2025 | Exempt from additional tariffs |
✅ Official U.S. Tariff Exemptions: Strategic Product List
To mitigate the impact on domestic industries and essential sectors, the U.S. has issued a list of exemptions for nearly 1,000 products, released via White House channels on April 3, 2025. These include:
🟢 Exempted Product Categories:
- Goods in Transit before April 9, 2025.
- Essential Supplies: Medicine, food, clothing, emergency goods.
- Informational Products: Books, digital media, news archives.
- Section 232 Items: Steel, aluminum, vehicles already tariffed under Section 232.
- Industrial & Consumer Goods: Copper, semiconductors, chemicals, wood, paper.
- Critical Minerals: Energy-related and strategic minerals scarce in the U.S.
- U.S.-Made Components: If 20%+ of the item’s declared value is U.S.-origin, the added tariff applies only to the non-U.S. portion.
📥 Download Full Exemption List (Reciprocal + Section 301):
👉 Baidu Link (Code: jdsj)
📉 Immediate Fallout in Global Shipping
The impact on international shipping was instant and severe:
- 📦 -67% drop in U.S.-bound container bookings in just 7 days (source: TradeView, Vizion).
- 📉 Export order volume fell 40%.
- 🚢 Several carriers suspended key Pacific routes — for instance, the PN4 service by Premier Alliance is paused indefinitely.
“If these numbers are even close to accurate, this will severely disrupt global trade flows.”
— Lars Jensen, CEO, Vespucci Maritime
🇨🇳 China Responds: 84% Tariffs and Firm Diplomatic Posture
In direct retaliation, China’s Ministry of Foreign Affairs and Ministry of Commerce announced:
- 84% reciprocal tariff on U.S. goods.
- Addition of 16 U.S. firms to the export control blacklist.
- Publication of a white paper on China-U.S. trade relations, emphasizing that China “will not stand idly by” and is “prepared to respond firmly.”
Foreign Ministry Spokesman Lin Jian stated:
“The Chinese people’s right to development cannot be denied. Our sovereignty and interests will be resolutely defended.”
🌍 International Reactions
Other major economies have begun responding to the ripple effects:
- 🇪🇺 European Union is reportedly preparing retaliatory duties on $23B of U.S. exports, including soybeans, diamonds, and poultry【source: Business Insider】.
- 🇨🇦🇲🇽 Canada and Mexico are considering similar responses under trade framework clauses.
- 🏛️ Multilateral institutions have urged restraint, fearing further disruption to global recovery.
📊 Economic Outlook
Analysts and trade economists warn of far-reaching effects:
- ⚠️ Global recession risk if escalation continues.
- 🛒 Higher prices for U.S. consumers due to import surcharges.
- 🧩 Severe disruption to supply chains, prompting companies to reconfigure sourcing and logistics models.
🧭 What HAI International Holding Can Do for You
In times of uncertainty, expert guidance is your best ally. At HAI International Holding, we stand ready to help you navigate and adapt to the evolving trade landscape.
🧾 Tariff & Compliance Consulting
- Check your product’s HTSUS classification.
- Determine exemption eligibility.
- Monitor updates to reciprocal or 301 waivers.
📦 Supply Chain Optimization
- Reroute shipments via tariff-exempt countries like Canada or Mexico.
- Plan around port congestion and carrier suspensions.
🧠 Strategic Alternatives
- Explore third-country processing to shift origin.
- Use bonded warehouses or free trade zones.
📄 Documentation Support
- Assistance with U.S. customs filings.
- Compliance with exemption documentation for transiting goods.
📚 Frequently Asked Questions (FAQ)
What is the total tariff imposed by the U.S. on Chinese goods as of April 9, 2025?
The United States has imposed a total tariff of 104% on a wide range of Chinese-origin goods. This figure is the result of three cumulative duties: a base tariff of 10% under the Harmonized Tariff Schedule (HTSUS), an additional 34% labeled as a reciprocal tariff in response to Chinese trade practices, and a 50% punitive tariff applied in retaliation to China's own countermeasures. Together, these layers of taxation create a heavy financial burden on importers bringing Chinese goods into the U.S. market.
Which products are affected by the 104% tariff?
The majority of products originating from China are subject to the new 104% tariff, with some exceptions. Products from Canada and Mexico are not affected due to specific HTSUS subheadings, and goods that were already in transit to the U.S. before April 5, 2025, are also exempt. Furthermore, the White House has released an official list of exemptions which includes strategically important items such as essential medical supplies, food, certain chemicals, semiconductors, critical minerals, and products that contain more than 20% U.S.-origin value in their customs declaration. Only products that clearly meet these exemption criteria will be spared the 104% duty.
How do I know if my product qualifies for an exemption?
To determine whether your product qualifies for a tariff exemption, you need to verify its exact classification under the HTSUS and compare it against the codes listed in the U.S. government's exemption documentation. You will also need to confirm the shipment's timeline — specifically, whether it was exported or cleared for consumption before April 9, 2025 — and assess whether it qualifies as an essential good or includes significant U.S. content. If the product is also covered by the Section 301 tariff exemption extension valid through May 31, 2025, it may be fully exempt from both types of tariffs. HAI International Holding’s customs experts are available to assist in this evaluation and help you avoid costly errors.
Are there any changes for small parcels under $800?
Yes, the treatment of low-value e-commerce parcels has changed significantly. Under a new executive order, the previous de minimis exemption of $800 has effectively been repealed for imports from China. Starting May 2, 2025, these parcels are subject to a 90% tariff or a flat fee of $75 per item — whichever is higher. Beginning June 1, 2025, all eligible parcels will instead be charged a flat duty of $150 per item, regardless of their declared value. This means even small packages worth just $10 will be taxed at a rate equivalent to 1,500%, making such shipments economically unviable for most merchants. This change targets direct-to-consumer platforms and cross-border e-commerce companies relying on small parcel shipping.
