Tariffs and Their Impact on Global Trade

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Recent tariff changes may impact your global shipping. UPS has the resources to help you navigate these changes and streamline your global shipping.

View Tariff Updates

How Tariffs Impact Your Shipping

We’re here to help you understand tariffs and how they may impact your international shipments.

What are tariffs?

Tariffs are taxes levied by a government on imported goods, increasing their cost upon entry. These taxes serve various purposes, such as protecting domestic industries, generating government revenue, and balancing trade relations.

When a tariff is applied, the importer pays the additional duty at customs before the goods are released. These costs often pass through the supply chain, often leading to higher prices for businesses and consumers.

View a summary of tariff impacts and updates.

Who pays the tariffs?

While tariffs are imposed on foreign goods, the financial burden typically falls on domestic consumers. Importers pay tariffs to US Customs and Border Protection upon the goods' entry. These additional costs are typically passed along the supply chain, increasing prices for businesses and consumers.

How will the new tariffs impact me?

US trade policy changes will likely increase landed costs due to tariffs and require adjustments to import declarations. Businesses may need to adjust pricing or explore alternative supply chains to manage costs effectively.

View a summary of country-specific regulations.

How Can UPS Help?

Don’t let duties and taxes keep your business from thriving.

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With the UPS® Global Checkout API, you can offer customers a guaranteed landed cost - covering all duties, taxes and fees - right at checkout.

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We have the tools to help you clear customs digitally, APIs to help ensure accurate documentation, as well as a secure online portal if you do encounter a delay.

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FAQ

How will the new U.S. tariffs for China and Hong Kong SAR be applied?
Tariffs are applied to all goods originating from China and Hong Kong SAR per the Federal Register Notice.
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What are Rules of Origin and how are Rules of Origin applied?
Rules of Origin are the criteria used to determine a product's country of origin for trade and customs purposes. They are essential in applying tariffs, trade agreements and import restrictions. In this case, the Rules of Origin will ensure that all products from targeted countries are subject to tariffs, regardless of their routing to the US.
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With the new U.S. tariffs, can I still claim de minimis (below $800 USD per day)?
Yes, de minimis is currently allowed for US imports, however per US Executive Order posted on April 2nd, 2025, products of China and Hong Kong SAR entering the US for consumption after 12:01 am EST on May 2nd, will no longer be eligible for de minimis. Shipments that contain products of China and Hong Kong SAR will now be subject to all applicable duties.
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Are there exceptions to the 20% additional duties for China and Hong Kong SAR?
Some exemptions may exist for specific commodities as noted in the Cargo Systems Messaging Service (CSMS) bulletin # 63988468. Customers should seek guidance from a qualified professional to confirm if these apply to their products.
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Can I claim duty drawback on new U.S. tariffs for China, Mexico or Canada?
No. The additional duties imposed by the Executive Order are not eligible for duty drawback.
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How will the new U.S. tariffs impact my business and supply chain?
US trade policy changes will likely increase landed costs due to tariffs and require adjustments to import declarations. Businesses may need to adjust pricing or explore alternative supply chains to manage costs effectively.
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How are shipments subject to formal entry handled vs. informal entry?
Please be informed that non-de minimis shipments will be subjected to formal entry or informal entry depending on various circumstances.

For formal entry, Merchandise Processing Fee (MPF) and duties and taxes as imposed by the customs, as well as UPS customs brokerage fees will be billed to shipper or consignee depending on the shipment’s bill term.

For informal entry, UPS customs brokerage fees and applicable duties and taxes will be billed to shipper or consignee depending on the shipment’s bill term.

You may also visit here to identify the harmonized tariff code for your goods. If you are shipping a single commodity that is valued over $2,500 you will be required to fill out an Electronic Export Information (EEI) form. EEIs are filed electronically with ACE, either by you or UPS on your behalf.
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As a shipper, how should I prepare my clearance documents to be compliant with the new regulations?

All shippers are urged to ensure that all information on the commercial invoice is accurate and detailed to facilitate a more efficient customs clearance process and avoid potential delays.

Please click here to learn more about the respective entry type based on shipment value, requirements and applicable fees for goods originating from China or Hong Kong SAR origins.

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Note

At the date of this publication, polices are evolving. This content is for informational purposes only. It does not constitute legal or professional advice. Information herein was obtained from government, industry and other public sources which are subject to change and have not been independently verified by UPS and is subject to change. Recipient has sole responsibility for determining the usability of any information provided herein. Before recipient acts on the information, recipient should seek professional advice regarding its applicability to the recipient’s specific circumstances.

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