U.S. and China Announce Tariff Updates

On May 12, 2025, the White House issued an Executive Order providing additional information on the outlined plans by the U.S. to revise reciprocal tariff rates and strengthen the economic and trade relationship with China.

Below is a recap of the specifics in the Executive Order:

• 90-day suspension of additional ad valorem duties on the PRC list, Annex 1. The U.S. will instead impose on articles from China an additional ad valorem rate set forth by EO 14257 as modified by this order.
• Suspension of country-specific ad valorem rate of duty: Effective May 14, 2025, all articles imported into the U.S. from China (including Hong Kong and Macau) will be subject to an additional ad valorem rate of duty of 10%, subject to exceptions in EO 14257.
• Tariff Modifications: Effective May 14, 2025, Tariffs on certain Chinese goods will be reduced from 125% to 34%. These changes affect HTSUS heading 9903.01.63 and related notes, which will be updated accordingly. The updated tariff rate of 34% will be in effect for a temporary 90-day suspension period. The modification excludes certain products already covered under other HTSUS headings (9903.01.26–9903.01.34).
• De Minimis Tariff Decrease: The ad valorem rate of duty set forth will decrease from 120 percent to 54 percent. The individual postal item containing goods duty of $100 will remain in effect and will not increase to $200 on June 1^st, as previously planned.

CBP issued CSMS #65029543 on May 13, 2025, providing an updated guidance on Federal Register Notice Published on De Minimis Requirements Per Executive Order 14256 and Guidance for Carriers Transporting International Mail. The CSMS message advised that as of May 14, 2025, “shipments of covered products valued at or under $800 arriving through international mail from China and Hong Kong will be subject to an ad valorem duty rate of 54% or a flat specific duty rate of $100 per package.” It also included the Mail Carriers Compliance Guidance which includes the process for filing data and remitting duty payments to CBP.

As the 90-day period progresses, it’s more critical than ever to accurately forecast your import client’s activity. Sudden increases in duties can lead to bond insufficiencies. Failing to update in a timely manner can result in bond stacking liability, which increases financial risk exposure to both the importer and the surety.

We recommend proactively reviewing customs bond limits with your importer clients and working with a trusted surety partner to ensure your bond remains adequate for current and projected import volume.

We will continue to monitor policy developments and assess their impact on your supply chain. If you have any questions in the meantime, please do not hesitate to reach out to us at letsconnect@avalonrisk.com.