Government Regulation
July 3, 2025
Tariff Update
US container import tariffs averaging 21%, says Maersk
Levies less than half prior to China-U.S. tariff pause
· Thursday, July 03, 2025
Key Takeaways:
Importers are paying an effective 21% tariff on all containerized imports entering the United States, the world’s second-largest ocean line said.
That’s less than half the rate of the peak average earlier this year, Maersk said Wednesday in a market update.
“On average, companies are currently paying an effective average tariff rate of approximately 21% relative to container load on all U.S. imports, according to Maersk’s container-weighted effective average tariff rate metric,” the company said. “At its peak, shortly after April 2, the average effective rate was 54%.”
China and the U.S. announced a 90-day pause in their escalating tariff fight April 9. That pause ends July 9, and some extend to next month, but it’s unclear how many new trade agreements Washington will complete by then, or whether tariffs will return to previous levels.
Washington has come to basic terms on trade deals with China, Vietnam, and Great Britain.
“Visibility has worsened and trade barriers have increased since the U.S. formally announced its tariff package to the world on April 2,” Denmark-based Maersk (OTC: AMKBY) said. “For now, most country-specific import tariffs are paused while long-term deals are being negotiated, with deadlines coming up in July and August. However, there are still trade tariffs impacting how companies move their cargo, particularly between the U.S. and China.”
Ocean container rates from China to U.S. West Coast ports have fallen sharply in recent weeks on weaker demand following an initial surge as liner operators rushed to restore vessel capacity during the tariff pause.
At the same time, the SONAR Inbound Ocean TEU Volume Index as of July 3 was 2307.46, compared to a high mark of 2693.35 in June, 2021.
Some U.S. companies in apparel and fashion have shifted their sourcing, and have reached “single-digit” dependency on Chinese manufacturing, said Maersk Chief Commercial Officer Karsten Kildahl, in the update.
“[O]ther commodities like home improvements have a significantly higher level of Chinese manufacturing due to the nature of the goods. This is not just a short-term tactical reaction to escalating geopolitical tensions, but rather a long-term strategic move to future-proof supply chains and remain resilient.”
Global container demand grew 6.1% in the first quarter, comparable to previous quarters. Maersk said preliminary second quarter figures will reveal a high degree of volatility triggered by tariff announcements.
The company in May said global container demand would be within a wide range of –1% to 4% for all of 2025.
The company added that tensions in the Middle East continue to make the Red Sea-Suez Canal an elevated security risk.
Maersk said its Gemini services with Hapag-Lloyd (OTC: HLAGF) had a 90.9% schedule reliability in May, above its 90% forecast.
July 1, 2025
We’re Here to Help
ECHA to assess implementation of diisocyanate risk management measures
Helsinki, Finland – The European Chemicals Agency (ECHA) is to assess the implementation of risk management measures for a number of restricted chemicals in the workplace. These include diisocyanates.
As part of REF-15, its next EU-level enforcement project, inspectors will check the safe use information in safety data sheets. They will also look at whether the recommended risk management measures are implemented in the workplace, and check that companies authorised to use substances of very high concern are applying the correct conditions. It will also cover the use of restricted hazardous substances with special conditions, including diisocyanates.
ECHA said the project will improve worker safety, and strengthen enforcement by enhancing collaboration between the different authorities responsible for occupational safety and health legislations. The inspections are slated to take place in 2027, with the report expected to be published in 2028.
Trade association Isopa said it “fully supports” the objective to ensure worker safety. “Safety training is considered the most effective and feasible measure to mitigate the risks of working with diisocyanates,” it said. “In alignment with the Reach restriction on diisocyanates, our industry has taken significant efforts to ensure the availability and dissemination of safety training to ensure the responsible use of these substances.”
Isopa described its industry-wide training efforts as a considerable achievement. “[They reflect] our collective dedication to workplace safety,” it said. “Over a million workers have already been trained through coordinated industry work, demonstrating a strong commitment to implementing effective risk management practices.”
June 29, 2025
China Tariff Update
US, China agree on deal for tariffs, rare-earth magnets
China’s exports to the US will have a minimum 30% tariff rate, White House officials say
· Friday, June 27, 2025
The U.S. and China have agreed on a trade deal that would reduce tariffs and expedite shipments of rare-earth metals.
United States Treasury Secretary Scott Bessent said on Friday that U.S. tariffs on Chinese imports will now start at 30%, while China’s duty rate on goods from the U.S. will be at 10%. The 20% fentanyl levy on China will also stay in place.
In April, the Trump administration hit Chinese imports with a 145% tariff rate. China retaliated by slapping a 125% tariff on goods imported from the U.S.
“Now our tariffs are at 30% on them, we’re at 10%,” Bessent said on Fox Business. “We’re collecting a substantial tariff income.”
President Donald Trump announced the agreement with China on Thursday during a news conference that “We just signed with China yesterday,” without further explanation.
China’s Commerce Ministry confirmed that both nations have reached a framework for a deal in a statement on Friday.
“China will review and approve export applications for controlled items that meet the required criteria, while the United States will lift a series of restrictive measures previously imposed on China,” the country’s Ministry of Commerce said in a statement to China Daily News.
U.S. levies on Chinese goods stood at an average of 51.1% for most imports before Thursday’s trade deal was announced, while China’s duties on American products were at 32.6%, according to the Peterson Institute for International Economics.
Bessent also said China has agreed to remove its restrictions on exports of rare-earth metals.
On April 4, China began restricting exports of rare-earth magnets to the U.S., which are used in high-tech products such as computer chips and electric vehicle batteries.
“We have an agreement with them that will make magnets flow to everyone who had received them before on a regular basis,” Bessent said.
April 30, 2025
China Waives Ethane Tariffs
China removes 125% tariff on U.S. ethane imports – Reuters
EditorLouis Juricic
Published 29/04/2025, 15:20
China removes 125% tariff on U.S. ethane imports – Reuters
© Pavlo Gonchar / SOPA Images/Sipa via Reuters Connect
Investing.com — China has recently eliminated the 125% tariff on ethane imports from the United States, according to Reuters, citing two informed sources. The tariff, which was imposed earlier this month, has now been waived, providing relief for Chinese firms importing U.S. ethane for petrochemical production. This decision will also create a market for the natural gas liquid, a byproduct of U.S. shale gas production.
Chinese companies that import ethane include Satellite Chemical, SP Chemicals, Sinopec (OTC:SHIIY), Sanjiang Fine Chemical, and Wanhua Chemical Group. The primary U.S. exporters are Enterprise Products Partners (NYSE:EPD) and Energy Transfer (NYSE:ET). According to data from the U.S. Energy Information Administration, China purchases nearly half of all U.S. ethane exports.
Earlier this month, China had escalated its tariffs on imports of U.S. goods, including ethane, to 125%. This was a response to U.S. President Donald Trump’s decision to target the world’s second-largest economy with higher duties.
In recent days, however, the tariff on ethane was waived.
April 6, 2025
What is Annex II?
United States Tariff Changes: What You Need to Know NOW
Published: April 3, 2025
Table of Contents
- Massive New Tariff Changes: What You Need to Know NOW
- For Further Guidance….
Massive New Tariff Changes: What You Need to Know NOW
The latest round of tariff changes is here, and the impact will be swift and significant.
The White House recently announced sweeping new tariffs, including a 10% baseline tariff on all imports and country-specific tariff rates set to take effect soon. Adding to the pain for many importers, the de minimis exemption for low-value shipments from China is being eliminated. Here’s what you need to know to prepare.
Key Points:
1. 10% Tariff on All Imports (Effective April 5)
- An Executive Order issued on April 2 imposes an additional 10% ad valorem duty on all goods imported into the U.S.
- Applies to goods entered for consumption or withdrawn from warehouse on or after 12:01 a.m. ET on April 5.
- Transit Exemption: Goods loaded and in transit on the final mode of transit into the U.S. before 12:01 a.m. ET on April 5 will not be subject to the 10% duty.
2. Country-Specific Tariffs Begin April 9
- Starting April 9, goods from countries listed in Annex I of the Executive Order will face individual ad valorem tariff rates.
- For example:
- China: 34%
- South Korea: 26%
- India: 27%
- European Union: 20%
- See Annex I for the complete list of countries and their applicable rates.
- Transit Exemption: Goods from Annex I countries that are already in transit on the final mode of transit into the U.S. before 12:01 a.m. ET on April 9 will not be subject to these country-specific tariffs. Again, GET YOUR PRODUCTS LOADED NOW!
3. Free Trade Agreements Not Exempt
- These tariffs will apply to all goods from impacted countries, regardless of existing U.S. Trade Agreements, unless explicitly excluded.
4. Elimination of China De Minimis (Effective May 2)
- Beginning May 2, low-value imports (≤ $800) from China will no longer qualify for duty-free de minimis treatment.
- All applicable duties must be paid under normal entry procedures.
- Packages valued at or below $800 sent through non-postal methods will be subject to all applicable duties.
- Packages valued at or below $800 sent through the international postal network will be subject to a duty rate of 30% of their value or $25 per item (increasing to $50 per item after June 1, 2025).
5. CBP Guidance Expected Soon
- Customs and Border Protection (CBP) will release additional instructions on how these measures will be implemented. We will provide updates as soon as official guidance is issued.
6. Additional Considerations from Annex I and Annex II
- Annex I: Provides a detailed list of countries subject to country-specific tariffs starting April 9.
- Annex II: Lists products that are excluded from the tariffs, including:
- Products already covered by Section 232 tariffs (e.g., steel, aluminum, autos, auto parts)
- Pharmaceuticals (some), semiconductors, copper, lumber, energy, and critical minerals
- Goods under 50 USC 1702(b) exceptions
- Additionally, USMCA-compliant goods from Canada and Mexico remain duty-free. However, non-compliant goods are still subject to existing tariffs related to fentanyl or migration under IEEPA (25% or 10% tariffs).
What This Means for Importers
These changes represent some of the most significant trade policy shifts in recent memory. Importers, particularly those bringing in goods from China, South Korea, India, and the European Union, will be hit hardest.
The elimination of the de minimis exemption for low-value shipments from China is likely to cause major disruptions and increase costs for U.S. businesses relying on small-scale imports.
Preparing for the Changes
Here’s what you should do to prepare:
- Review Your Supply Chain: Assess which of your products will be affected by the new tariffs and adjust your sourcing strategies accordingly.
- Reclassify Your Products (If Applicable): Review your HTS codes to determine if your products might qualify for exclusion or a lower rate.
- Review Annex I and Annex II Thoroughly: Ensure you understand which of your products are impacted and whether you qualify for any exemptions.
- Consult Legal Experts: These tariffs are layered on top of existing tariffs, so it’s essential to have expert guidance to navigate the complexities. Very little is clear about what just came out, and we do expect that the tariff rates for various countries will change.
- https://harris-sliwoski.com/chinalawblog/united-states-tariff-changes-what-you-need-to-know-now/
Annex II: https://www.whitehouse.gov/wp-content/uploads/2025/04/Annex-II.pdf
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