Government Regulation
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
April 4, 2025
MDI Trade Case Update
USITC Votes to Continue Investigation on Methylene Diphenyl Diisocyanate (MDI) from China
March 28, 2025
News Release 25 -041
Inv. No(s). 731-TA-1733
Contact: Jennifer Andberg, 202-205-1819
USITC Votes to Continue Investigation on Methylene Diphenyl Diisocyanate (MDI) from China
The U.S. International Trade Commission (Commission or USITC) today determined that there is a reasonable indication that a U.S. industry is materially injured by reason of imports of methylene diphenyl diisocyanate (MDI) from China that are allegedly sold in the United States at less than fair value from China.
Chair Amy A. Karpel and Commissioners David S. Johanson and Jason E. Kearns voted in the affirmative.
As a result of the Commission’s affirmative determination, the U.S. Department of Commerce will continue its investigations of MDI from China, with its preliminary antidumping duty determination for China due on or about July 22, 2025.
The Commission’s public report, Methylene Diphenyl Diisocyanate from China (Inv. No 731-TA-1733 (Preliminary), USITC Publication 5606, April 2025), will contain the views of the Commission and information developed during the investigations.
The report will be available by May 5, 2025; when available, it may be accessed on the USITC website.
https://www.usitc.gov/press_room/news_release/2025/er0328_66700.htm
April 3, 2025
Bassett Furniture Outlook Post Tariffs
Bassett Furniture manufactures living, dining, bedroom, outdoor and upholstered furniture in Virginia and North Carolina.
Bassett builds profitability in Q1; CEO talks price plan in wake of tariffs
Bobby Dalheim //Senior Editor of Case Goods and Global Sourcing//April 3, 2025
BASSETT, Va. – Bassett Furniture reported consolidated first quarter sales of $82.2 million, a decrease of 5.1% from last year. However, when considering that last year’s quarter had an extra week, sales increased 2.2%.
The company reported positive operating income of $2.5 million, compared to a loss last year of $2.4 million. This marks the second consecutive quarter of profitability, which followed five straight quarters of losses previously.
Improved wholesale margins in the quarter drove company gross margin to 57%, a 170 basis point increase over the prior year, and marking some of the highest levels ever seen, according to the company.
Considering the extra week, wholesale sales climbed 4.2% to $52.9 million. Margins grew 250 basis points due to gains in Bassett Custom Upholstery and manufacturing efficiency gains.
In retail, with the extra week considered, sales increased 6.8% to $53.3 million. Gross margin in the segment fell 80 basis points due to lower margins in in-line and clearance goods, as the company said it became more aggressive in cycling through unproductive inventory.
“We had a strong December and January, due in part to the shorter time frame between Black Friday and Christmas,” said Rob Spilman, CEO. “The sales environment was a little more challenging in February.”
Tariffs were, of course, a talking point on the earnings call.
“Tariffs have been top of mind for several months and especially since 4 p.m. yesterday,” Spilman said. “Although 79% of our wholesale shipments in the first quarter were manufactured or assembled in the U.S., many materials used in the process, like fabric and plywood, will now be exposed to tariffs, as will the remaining 21% of our product.
“The entire industry is working with outside experts to gain clarity on this unusual situation. We will determine what this means for our pricing structure on goods that are affected over the next several days. We’re thinking about everything. We’ve been reaching out to our best customers.
“If it stays like it is, we’re going to have to increase prices at some level.”
Spilman said on an earnings call that it’s not feasible to bring the remaining 21% of the company’s product to the U.S. to be made domestically.
“We can certainly emphasize the domestic product more prominently if we choose to do so,” Spilman said. “But we have some nice selling imported product that’s really making a difference for us. We have to study that. We do have some flexibility with our five U.S. factories, and we’re not totally reliant on imports.”
Spilman gave his overall outlook:
“Our strategic plan for 2025 was designed to weather another year of tepid demand and to keep us disciplined and focused on growth. Our management team is running with a leaner mindset.
“We plan for housing sales to remain slow and we’re moving to react quickly to the ups and downs and economic data and changes from Washington. Last week’s report that consumer confidence is plummeting is disconcerting, but we believe the steps we’ve taken will help us run efficiently and get through this tough furniture economy.”
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