The U.S. has officially imposed a 10% tariff on imports from China and Hong Kong, effective immediately. While tariffs on Canada and Mexico have been delayed until at least March 1, China and Hong Kong face immediate cost increases.
Key Takeaways:
New 10% Tariffs: Now in effect for “products of China and Hong Kong” under HTSUS 9903.01.20.
Expanded Definition: "Products of China" now include Hong Kong goods, with origin determined by substantial transformation.
Cumulative Costs: This tariff stacks on top of normal tariff rates, Section 301 duties, and potential anti-dumping/countervailing duties (ADD/CVD).
No Section 301 Exemption:
Goods previously excluded from Section 301 tariffs must still pay this new 10% tariff.
Goods eligible for duty exemption/reduction under HTSUS Heading 9902 (e.g., Miscellaneous Trade Bill) must also pay the 10% tariff.
Exclusions from the 10% Tariff:
Personal use items
Donations of food, clothing, and medicine for humanitarian relief
Certain HTSUS Chapter 98 goods (e.g., U.S. goods returned, repairs, and assembly of U.S. components abroad)
Informational materials
Goods Already in Transit: Shipments loaded or in transit before Feb. 1, 2025, are exempt until March 7, 2025 (HTSUS 9903.01.23).
Restrictions on Small Shipments: Section 321 de minimis ($800 threshold) is denied for China and Hong Kong goods. All shipments require formal entry.
No Duty Drawback: Refunds for duties paid under these tariffs will not be allowed.
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