Tariffs and Their Impact on International Shipping

What are the new U.S. changes to the de minimis exemption?

President Trump signed an executive order suspending the de minimis exemption for all low-value (under $800) shipments to the United States, effective August 29, 2025. All U.S. imports, regardless of their value, country of origin, mode of entry, or how they are routed into the country, will now be subject to applicable U.S. duties and taxes when shipped via non-postal networks.

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How does the de minimis suspension affect postal shipments?

For goods shipped through the international postal system, duties will be assessed using either ad valorem duty (based on effective tariff rates) or specific duty ($80-$200 per item, depending on country of origin).

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What are the new tariff rates for U.S. trading partners?

• The White House released an executive order revising tariffs rates with trading partners. Effective August 7, 2025, new tariff rates apply for all countries listed in Annex I. Any countries not listed will have a 10% tariff. Additional tariffs on the European Union countries will apply only when the rate is below 15%.
• The White House also released an executive order increasing Canada’s tariff rate. Effective August 1, 2025, U.S. imports of goods from Canada will be charged a 35% tariff rate, up from 25%. United States-Mexico-Canada Agreement (USMCA) qualified goods continue to be exempt.
• Goods transshipped to evade these tariffs will face a 40% additional duty, plus penalties.

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Can multiple tariffs apply to the same product?

In most cases, yes. All reciprocal tariffs are stacked on top of existing Most Favored Nation duties, except for the European Union. However, reciprocal tariffs do not stack with Section 232 tariffs, and some products may qualify for exclusions.

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What are the Rules of Origin and how are they 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 U.S.

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As a shipper, how should I prepare my clearance documents to comply with the new regulations?

• Provide complete and accurate commercial invoice information including:

  • Product details and description of goods
  • Country-of-origin/manufacture of the goods
  • 10-digit Harmonized Tariff Schedule of the United States (HTSUS)
  • Quantity and value of items in the shipment
  • For shipments requiring formal entry, an Importer Tax ID with Employer Identification Number (EIN) or Social Security Number (SSN) is required

• Include the recipient’s email and contact information to ensure UPS can contact the recipient for collection of duty and taxes or additional forms if necessary.

• 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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How are shipments subject to formal entry handled vs. informal entry?

Shipments will be subject to formal entry or informal entry depending on various circumstances. The following will be billed to the shipper or consignee depending on the shipment’s billing terms:

Formal entry (for shipments valued over $2,500):

• Merchandise Processing Fee (MPF)
• Duties and taxes as imposed by customs
• UPS customs brokerage fees

Informal entry (for shipments valued up to $2,500):

• Duties and taxes as imposed by customs
• UPS customs brokerage fees

Additional tariff resources to help prepare your shipment:

• Harmonized Codes (HS codes), also known as tariff codes

  • These codes are used internationally to classify traded products and determine the tariffs, duties and taxes due
  • Identify the HS code for your goods here

Electronic Export Information (EEI) forms

• If you are shipping a single commodity that is valued over $2,500 you will be required to fill out an EEI form

• EEIs are filed electronically with Automated Commercial Environment (ACE) either by you or UPS on your behalf

  • ACE is the U.S. Customs and Border Protection's (CBP) online platform
  • ACE connects businesses with CBP and other federal agencies

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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 listed here. 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 affect shipping costs?

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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What are the most common UPS Brokerage surcharges that I should be aware of?

Disbursement fee, Warehouse storage fee and Additional tariff lines surcharge are the most commonly billed brokerage surcharges. For these charges, the charge applicable in the destination country will be assessed. A Duty/Tax forwarding surcharge will be charged when the duties and/or taxes are billed outside the destination country. Please see the surcharge descriptions below and the corresponding fees referenced below are for shipments destined to the U.S.

Disbursement fee: A fee of the amount paid or processed by UPS on behalf of the customer will be charged. Shipments to U.S. destinations will incur a fee of 2% of duty/tax (minimum $14.00).

Warehouse storage fee: This will be assessed when shipments remain in the UPS warehouse in the U.S. after the two free days, regardless of the customs broker. A minimum of US $25 + US $0.05 per lb. per day will apply after two days. The rate of $0.10 per lb. per day will apply after 7 days.

Additional tariff lines surcharge: A fee of $3/line applies when more than three entry lines are entered for shipments destined to U.S. destinations. UPS is not responsible for consolidating entry lines for customs clearance, including lines containing the same Harmonized Tariff Code and Country of Origin.

Duty/Tax forwarding surcharge: When the “Duty/Tax Forwarding Surcharge” billing option is selected, a surcharge of TWD756 will be billed to the shipper.

Will duties and taxes be incurred if I shipped before a regulatory update is made, but the shipment arrives after?

In light of potential changes announced by U.S. Customs and Border Protection (CBP), UPS may require additional time to ensure compliance with regulatory requirements. As a result, please note that some shipments may experience delays, and any new duties or taxes incurred during this period will fall under the responsibility of the customer. While UPS strives to minimise any impact on shipments, we are unable to assume liability for any duties or taxes that may arise, including those due to shipment holdovers. The UPS Service Guarantee does not apply where delays result from these regulatory requirements.

As per standard practice, if duties or taxes cannot be collected from the receiver, the charges may be billed to the shipper.