New U.S. Trade Orders: Reciprocal Tariffs & End of De Minimis for China-Origin Goods

On April 2, 2025, the White House issued two Executive Orders that will significantly reshape U.S. trade policy and customs practices. These measures focus on correcting longstanding trade imbalances and combating the importation of synthetic opioids through eCommerce shipments.

1. Reciprocal Tariff Executive Order

President Trump has declared a national emergency to address what the administration identifies as decades of non-reciprocal trade practices. The new order introduces reciprocal tariffs on imports from countries with persistent trade surpluses with the U.S.

Key points:

• Countries that impose higher tariffs or restrictive non-tariff barriers on U.S. goods will now face matching tariffs on exports to the U.S.

• The move is intended to strengthen the U.S. manufacturing base and reduce dependence on adversarial nations for critical goods.

• This marks a shift toward country-specific tariff rates based on how trading partners treat American exports.

 

 

2. Termination of Section 321 De Minimis for China & Hong Kong

In a separate Executive Order, the administration is eliminating the Section 321 de minimis exemption for low-value goods from China and Hong Kong, effective May 2, 2025, at 12:01 a.m. EDT.

Key changes include:

• Goods valued under $800 will no longer be duty-free if originating from China or Hong Kong.

• These shipments will require formal customs entry and be subject to all applicable duties and taxes.

• Packages entering through the international postal system will be charged a flat duty of 30% or $25 per item if the value is not declared (rising to $50 per item on June 1).

• The change is framed as a measure to prevent the trafficking of synthetic opioids through low-value eCommerce shipments.

 

What This Means for Importers

These policy changes have wide-ranging implications for U.S. importers—particularly those relying on low-value eCommerce shipments from Asia or sourcing heavily from countries with significant trade imbalances.

AGS has been preparing for these changes and continues to work with U.S. Customs to support compliant, efficient import solutions for our clients.

We encourage all businesses involved in cross-border trade to review their supply chains, assess their exposure to these new rules, and reach out with any questions about adapting to the evolving regulatory landscape.

For more details or to speak with a trade advisor, contact us at commercial@agslogistics.com.