China Retaliates With Their Own Tariffs (Updated: 2/5)

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Trump’s Trade Tariff Updates

Trump's Trade Tariff Updates

Update: 2/5/2025

To retaliate against the 10% U.S. tariff on all Chinese goods, China introduced the following additional duties on U.S. exports:

These tariffs are scheduled to take effect on February 10, 2025.

The US Postal Service (USPS) will not be implementing the ban on all inbound packages from China and Hong Kong announced yesterday. In the initial notice, USPS said that it would no longer accept parcels from China and Hong Kong after the US imposed an additional 10% tariff on Chinese goods and ended the de minimis exception that allowed small value parcels to enter the country without paying tax. According to USPS officials, it will work with CBP to implement a collection process for the new China tariffs to avoid delivery disruptions.

Update: 2/4/2025

Trump’s Canada and Mexico Tariffs Postponed

The implementation date of the proposed tariffs against Canada and Mexico has been postponed by one month, moving the effective date from February 4, 2025 to March 4, 2025.

Both countries have offered concessions that appear to have contributed to the postponements:

As of now, the 10% tariff on China and Hong Kong imports remains unchanged. Please refer to the Federal Register Notice and the instructions released to the trade. In addition, the China de minimis loophole remains closed at this time.

Update: 2/3/2025

President Trump announced today he has agreed to immediately pause tariffs proposed against Mexico for one month after President Sheinbaum agreed to send 10,000 Mexican troops to the border to help combat drug trafficking.

Update: 2/1/2025

What We Know So Far

President Trump has invoked the International Emergency Economic Powers Act to issue three executive orders imposing new ad valorem tariffs:

These additional tariffs take effect on Tuesday, February 4, 2025, on top of existing duties (e.g., Section 301, Section 232, antidumping/countervailing duties).

While the Canadian-focused order has been published, the orders for Mexico and China are still pending. However, they are expected to follow the same framework, apart from the reduced duties for Canadian energy imports.

Key Takeaways

1. Effective Data & Exceptions

2. Unclear Scope

3. Open Questions

4. Canadian Energy Definition

5. No Exclusions Announced

6. Duty Drawback Prohibited

7. De Minimis Eliminated

8. Chapter 98 Uncertainty

9. Potential Retaliation

10. Possible Reversal

What’s Next?

More updates are expected by 2/3 or 2/4. If you’d like to discuss further, please let us know.

Update: 1/31/2025

Karoline Leavitt, White House Press Secretary, has reported that 25% tariffs on Canada, Mexico, and 10% on China will be enacted on February 1, 2025. It is unclear at this time whether specific products will be exempt.

Update: 1/26/2025

The U.S. and Colombia have reached an agreement to resolve a trade and immigration dispute, ensuring stability for their trade relationship:

Update: 1/22/2025

Tariffs Hit Snooze, For Now…

President Trump has delayed imposing new tariffs and put a pause on new rules or regulations until they’re reviewed by his appointees. Here’s a quick rundown of what’s happening:

The full White House memo can be viewed here.

Customs and Border Protection (CBP) emphasized their ongoing commitment to security, safety, and facilitating legitimate trade during a recent call with industry leaders.

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