Recent clarifications by U.S. Customs and Border Protection (CBP) have opened the door for many importers to claim refunds on duties paid under the International Emergency Economic Powers Act (IEEPA).

For companies sourcing goods from Canada or Mexico, this is a crucial moment to review past entries and uncover potential savings, especially under the USMCA’s Section 1520(d) refund provisions.

In this post, we’ll explain how IEEPA tariffs interact with USMCA rules, which shipments may qualify for refunds, and the practical steps importers can take to maximize recovery.

1. Why Refund Opportunities Are Emerging Now

Over the past few years, U.S. importers have been hit with a patchwork of IEEPA-driven duties on products otherwise eligible for preferential treatment under USMCA.
CBP recently clarified that goods of Canadian or Mexican origin, if assessed IEEPA duties in error, may now qualify for refunds—provided importers file the correct type of claim within applicable timelines.

This change is particularly relevant for:

Understanding these developments is critical for any importer looking to avoid the hidden costs of importing for small businesses and recover overpaid duties.

2. Understanding IEEPA Tariffs in a USMCA Context

IEEPA tariffs are emergency trade measures imposed under the International Emergency Economic Powers Act (IEEPA), typically by presidential authority to address foreign trade or national security concerns.

Under the USMCA, qualifying goods from Canada and Mexico typically enjoy duty-free treatment. However, IEEPA tariffs can temporarily override that status unless CBP determines the goods are exempt.

When CBP issues clarifications on refund eligibility, importers can often recover these duties by filing a protest or a USMCA 1520(d) refund claim through the Automated Commercial Environment (ACE).
Failing to act quickly could mean missing refund deadlines and losing potential savings.

3. Key Steps to Identify Refund-Eligible Shipments

Spotting refund opportunities starts with a detailed review of your import data. Consider:

  1. Origin Documentation:
    Do you have complete USMCA Certificates of Origin or equivalent data to prove qualifying Canadian/Mexican origin?
  2. Entry Dates & Tariff Codes:
    Prioritize reviewing entries made during tariff-transition periods or those charged IEEPA duties despite having valid USMCA documentation.
  3. CBP Filings:
    Check whether the original entry summaries flagged the goods for preferential treatment or if errors in HS codes prevented it.
  4. Deadlines:
    Refund claims under Section 1520(d) of the Tariff Act must generally be filed within one year of the original import date, while protests often have a 180-day window. For additional guidance on timelines, see our post on U.S. import tariffs in 2025 and their business impact.

4. Documentation to Get Right

Successful refund claims hinge on proper paperwork.
Importers should be ready to provide:

Aligning these documents early prevents delays and reduces the risk of refund denial due to missing or inconsistent data, a common contributor to tariff pass-through costs that impact U.S. importers’ pricing.

5. Common Pitfalls That Lead to Lost Refunds

Even when shipments qualify, many importers miss out due to avoidable errors, including:

Proactive auditing can help prevent these mistakes and improve cash-flow recovery.

6. Practical Tips to Maximize Recovery

To make the most of these opportunities:

7. Conclusion

IEEPA tariff refunds offer a valuable opportunity for U.S. importers to recover overpaid duties—but only if they act promptly and maintain accurate records.

A disciplined approach to auditing past entries and filing timely claims helps ensure compliance and maximizes refund recovery.

Don’t leave potential refunds on the table. Start reviewing your Canadian and Mexican import records today and ensure your claims are filed before deadlines close.

8. FAQs

Q1: Which goods qualify for IEEPA refunds under USMCA?
Generally, Canadian- or Mexican-origin goods that meet USMCA’s rules of origin and were mistakenly assessed IEEPA tariffs may qualify, as long as documentation supports their eligibility.

Q2: What are the deadlines for filing refund claims?
Refunds under Section 1520(d) typically require filing within one year of the original import date, while ACE protests often have a 180-day window from liquidation or the CBP decision date.

Q3: Do I need to file a protest or a reconciliation entry?
It depends on the nature of the error: protests challenge CBP’s assessment (e.g., duties charged in error), whereas reconciliation entries allow importers to submit final USMCA origin information after the initial entry.

Q4: What if I don’t have the Certificate of Origin for older shipments?
Without valid proof of origin, CBP is unlikely to approve a refund. Work with your suppliers as early as possible to gather any missing documentation.

Q5: Are there risks to filing incorrect refund claims?
Yes. Filing with incomplete or inaccurate information can lead to delays, penalties, or even denial of refunds. Ensure all documentation is consistent before submission.

Footwear may seem simple, but when it comes to U.S. customs, it’s one of the most complex product categories to import. From intricate tariff codes based on shoe construction to unusually high duty rates and frequent documentation issues, even seasoned importers can make mistakes.

If you’re a first-time importer or expanding your eCommerce inventory, here’s what you need to know to step confidently through the customs process.

Why Is Footwear So Complicated to Import?

Footwear imports are a hotspot for customs scrutiny. Here’s why:

Some footwear types face duties as high as 37.5%.

1. Classifying Footwear Correctly

Shoe classification starts in Chapter 64 of the HTS and depends on multiple factors:

Even a minor misstep can lead to incorrect duty payments or worse, a customs delay.

Want a clearer picture of how duties work? Review our U.S. Import Tariffs & Duties Guide for an overview of how HTS codes impact cost.

2. Watch Out for High Duty Rates

Footwear is notorious for some of the highest duty rates in U.S. imports. Why? This policy aims to protect U.S. manufacturers from cheaper imports, especially from high-volume producers like China or Vietnam.

Duty rates often depend on:

To avoid overpaying, work with a licensed customs broker who can ensure accurate classification and check eligibility for tariff exemptions or trade agreement benefits.

Check out U.S. Import Tariff Changes: Impact on Customs Brokers and Importers for insights on how changing policies may affect your pricing strategy.

3. Common Pitfalls in Footwear Importing

Here are the top mistakes footwear importers make and how to avoid them:

Need a crash course in documentation? Browse our Key Documents for Importing Goods into the USA for what every shipment should include.

4. Understanding Footwear Labeling Rules

The Federal Trade Commission (FTC) doesn’t regulate footwear labels as strictly as textiles, but U.S. Customs has its requirements:

Need help with compliance before your shipment arrives? A customs broker can flag potential mismatches before they become costly.

5. First-Time Importer? Avoid the “Rookie” Mistakes

For small eCommerce brands or first-time importers, footwear may seem like a promising niche—until you encounter your first classification challenge or an unexpected 28% duty rate.

Here’s how to prepare:

Need a broader strategy for your startup brand? Our article on Best Practices for First-Time U.S. Importers and Small eCommerce Brands is a great starting point.

6. Sourcing Strategy: Country of Origin Matters

Footwear sourcing has been shifting rapidly in response to tariffs. Brands now consider not just cost and quality, but tariff impact when choosing suppliers.

Check if your product qualifies under USMCA or another agreement in our Import Diversification Strategies guide.

Conclusion

Footwear importing can be rewarding, but only if you take it step by step. Nail the classification, know your duty rates, and get your paperwork in order from day one. That way, you’ll avoid delays, fees, and unhappy customers.

Let Clearit USA Be Your Footwear Import Partner

Whether you need help navigating HTS codes, securing lower tariffs, or ensuring compliance, our experts are here to walk you through every step of the process. Contact us today for a stress-free import experience.

Entering the world of importing can be exciting and overwhelming, especially for small eCommerce brands and first-time U.S. importers. While the opportunity to scale and diversify your product offerings is significant, it also presents risks and compliance hurdles. The good news? With the right approach and expert support, you can avoid costly mistakes and establish a streamlined import strategy from day one.

Here’s a simple guide with best practices to help you get started with confidence.

1. Understand Import Basics Before You Begin

Before placing your first order, get clear on the fundamentals:

2. Work with a Licensed Customs Broker

For many small businesses, working with a professional customs broker isn’t just helpful—it’s essential.

Learn why so many small brands rely on experts in What is a Customs Broker and Why Do You Need One?

3. Get Your Documentation in Order

Missing or incorrect paperwork is one of the most common causes of import delays. Always prepare these essentials:

Need a refresher? Our Key Documents for Importing Goods into the USA article walks you through each one in detail.

4. Start Small and Scale Smart

As a first-time importer, it’s wise to test the waters before going big:

5. Stay Ahead of Tariff Changes

Tariffs can fluctuate based on trade policy, especially in today’s dynamic global climate. For small importers, this can impact product pricing and margins overnight.

Check out U.S. Import Tariff Changes: Impact on Customs Brokers and Importers for the latest developments.

6. Embrace Digital Solutions

Customs brokerage is evolving fast, and small businesses can benefit from automation and digital tools:

Read more in U.S. Trade Policy Impact on Customs Brokerage to learn how digital transformation is changing the game for importers like you.

7. Think Long-Term

Successful importers don’t just focus on one shipment—they build systems and strategies for long-term success:

You can also explore Import Diversification Strategies for U.S. Companies to future-proof your business.

Final Thoughts: Start Smart, Grow Strong

Importing doesn’t have to be intimidating. With the right knowledge and guidance, small eCommerce brands and first-time importers can set up efficient, compliant operations and unlock powerful growth potential. At Clearit USA, we specialize in helping businesses like yours navigate the process with ease.

Need Help With Your First Import?
Let Clearit USA take the guesswork out of customs. Our licensed experts are here to ensure your shipments arrive smoothly every time. Contact us today to get started or request a quote.

As inflation and tariffs continue to squeeze U.S. businesses, importers are paying significantly more than they did just a year ago. For importers with limited pricing flexibility, the combined effect of these forces is a no-win situation. 

This blog unpacks how inflation interacts with tariffs to drive up costs—and what practical steps your business can take to stay resilient.

What Is “Tariff Pass-Through,” and Why Does It Matter?

Tariff pass-through refers to how much of a tariff’s cost is passed from the importer to the end consumer. For example, if you pay a 25% tariff on electronics from China, do you raise your prices by 25%? By 10%? Not at all?

In many cases, the answer depends on inflation. When inflation is high, businesses are more inclined to pass on tariff costs, as price increases are already occurring across the board. Consumers accustomed to rising prices are less likely to resist one more increase. However, there’s a flip side: if your customers are already financially strained, they may resist additional price increases. That can leave you absorbing those tariffs and seeing your margins shrink.

How Inflation Makes Tariffs Hurt More

Tariffs and inflation not only coexist—they exacerbate each other. Tariffs increase your input costs, and inflation magnifies those effects across your supply chain. Transportation, packaging, warehousing, and insurance costs tend to rise.

If you’re importing goods under newly raised or reinstated U.S. tariffs, as seen in the latest 2025 tariff announcements, your per-unit costs have likely risen significantly in the past few months. Add to that the broader inflationary pressures, and you’re not just paying more; you’re also risking slower inventory turnover and customer attrition.

It’s a perfect storm for small and mid-sized importers.

Case in Point: Tariffs on Goods from China

For example, electronics, tools, and machinery are imported from China. In 2025, these categories will again see elevated tariffs following the Trump administration’s revision of Section 301 in response to evolving geopolitical and economic conditions.

Price increases may be unavoidable if your business depends on Chinese parts or finished goods, but that doesn’t mean you’re helpless.

What Importers Can Do Right Now

Here are five practical strategies to help offset or absorb tariff-related costs in today’s inflation-heavy economy:

Break Down Your Landed Cost

Landed cost = product cost + duties + freight + insurance + other fees.

Understanding each component of your landed cost helps you identify possible savings. In a time of high tariffs and inflation, every percentage point matters.

Working with a knowledgeable customs broker can help you pinpoint which costs are rising and what you can do about them.

Use Legal Tariff Engineering Tactics

Can you modify or reclassify your product to fall under a lower-duty category? This is a perfectly legal strategy that larger importers have used for decades. It is known as “tariff engineering.”

Before pursuing this strategy, ensure you fully understand the compliance risks. A qualified customs broker can help you assess whether your product qualifies under a different HS code.

Take Advantage of the Tariff Pause (If You Can)

Some importers have a small window of opportunity. In May 2025, the U.S. announced a 90-day pause on some new tariffs to allow businesses to adjust.

If your goods fall into this category, it’s time to expedite shipments, finalize contracts, or lock in pricing before those duties take effect.

Communicate with Suppliers

Overseas suppliers may be unaware of how tariffs are affecting your costs. Open a conversation about:

Need help with these discussions? Our negotiation guide offers strategies to approach them tactfully.

Explore Duty Drawbacks and Refunds

If you’re re-exporting goods or using them in U.S.-made exports, you might be eligible for a duty drawback, a partial refund of duties paid.

This tool can be powerful for reclaiming some of your tariff spending, especially if your business is export-oriented.

The Big Picture: Get Proactive

Tariffs and inflation aren’t going away anytime soon. Even if your margins are tight, now is the time to be proactive, not reactive.

Start by:

Final Thoughts

You’re not alone if your costs rise and your options seem limited. However, understanding how inflation intensifies tariff pressures and implementing proactive strategies can turn today’s challenges into tomorrow’s competitive edge.

Need help navigating the changing tariff landscape? Contact Clearit USA to learn how we help importers stay compliant, informed, and in control.

Tariffs are here to stay, and they’re not going away anytime soon. The extra costs for U.S. businesses importing from overseas, especially from China, can feel like a blow to your bottom line. Many importers underestimate their negotiating power; strategic discussions can help mitigate costs.

This guide explains exactly how to have those tariff talks, what to ask for, how to position your request, and what to avoid. Whether you’re importing furniture, electronics, textiles, or components, you can take control of your costs. And it starts with a conversation.

Why These Conversations Matter

Let’s face it: if your costs go up 15–25% due to tariffs, you have limited choices:

That last option? It’s often the fastest, most cost-effective route.

Step 1: Know Your Numbers Before You Negotiate

Before you email or call your supplier, get your facts straight:

Related Read: U.S.–China Tariffs Explained: What Importers Need to Know in 2025

Step 2: Position Tariffs as a Shared Problem

The key is to approach the issue collaboratively:

“Due to new U.S. tariffs on this category, our costs have risen significantly. We’re looking at solutions to remain competitive and maintain our volumes. Can we work together on this?”

This approach creates a problem-solving mindset. Most suppliers don’t want to lose steady customers; they’ll listen.

Step 3: Request One or More of the Following

Cost Adjustments

Ask for a price reduction to offset some or all of the tariff increase.

Volume-Based Discounts

Suggest discounts for larger orders if reducing the unit price outright isn’t possible.

Shared Logistics Costs

Some suppliers may help subsidize freight costs (especially when shipping FCL).

Change in Country of Origin (COO)

If your supplier has facilities outside tariff-affected countries, consider sourcing from those locations. Ensure compliance with all legal and regulatory requirements when changing the COO.

Step 4: Offer Something in Return

Negotiation is a two-way street. If you’re asking for price relief, offer:

This shows you’re invested in the relationship and willing to grow together.

Step 5: Put It in Writing

Once you and your supplier agree to new terms, especially on cost-sharing or shipping responsibilities, clearly document them:

Step 6: Stay Informed

Tariff policy changes quickly. Stay updated on:

Pro Tips from Clearit USA

Conclusion

You don’t have to absorb every tariff increase. You can preserve margins, stabilize pricing, and protect your business with the proper negotiation approach.

Need help navigating tariffs or reviewing HS codes?
Clearit USA offers fast, reliable customs support with thoughtful, strategic insight. Let’s make importing less expensive and less stressful.

Import tariffs shape how companies source goods and determine pricing in the U.S. They act like a tax on products from abroad. In 2025, U.S. policymakers rolled out new duties on cars, metals, electronics, and everyday items. These moves aim to protect local industries and secure critical supply chains. But they also raise costs, create red tape, and force businesses to rethink their strategies.

This guide will help you:

Whether you run a manufacturing plant, oversee procurement, or lead a retail brand, these insights will keep you ahead of the curve. Let’s start with a quick look at how U.S. tariff policy has evolved over the centuries.

A Brief History of U.S. Tariff Policy

1. What Are Tariffs and Why Do They Matter

Tariffs are taxes on imported goods. When a product crosses a border, a tariff makes it more expensive than a similar domestic item. Countries use tariffs to:

Most people notice tariffs at the store checkout as higher prices. But behind the scenes, companies bear the brunt. They must factor duties into budgets, renegotiate contracts, and sometimes pass costs on to customers.

2. Early U.S. Tariffs

In the late 1700s, the U.S. government had no income tax. To fund the new republic, lawmakers leaned on import duties. Early tariffs were:

By the mid-1800s, tariffs funded the federal budget and shaped economic policy. They helped pay for roads, canals, and later railroads. Debates over tariff levels even contributed to the tensions leading up to the Civil War.

3. The 20th Century Shift

World War I and World War II showed the downsides of isolation. In the 1930s, the Smoot-Hawley Tariff raised duties on thousands of items. Other countries retaliated, deepening the Great Depression. After World War II, the U.S. led efforts to lower global barriers:

By the late 20th century, average U.S. applied tariffs on industrial goods fell to a few percent. Free-trade pacts like the North American Free Trade Agreement (NAFTA) further removed duties on many products between the U.S., Canada, and Mexico.

4. Modern Era: Selective Protectionism (2018–2024)

After decades of mostly falling duties, the U.S. returned to using tariffs as a policy weapon:

2018 Steel & Aluminum

Under national-security rules (Section 232), the government imposed 25% on steel and 10% on aluminum. Early exemptions for allies later expired.

2018–2020 China Tariffs

Using a different law (Section 301), the U.S. slapped duties on hundreds of billions in Chinese goods. These include electronics, furniture, machinery, and more. 

Automotive Import Investigations Begin

In 2019, the administration launched probes into auto imports for national security concerns. Those investigations set the stage for the big auto duties in 2025.

These moves marked a shift — tariffs were no longer emergency tools but part of a long-term trade strategy. Companies had to adapt quickly or face steep penalties.

Latest Developments in 2025 and Their Impacts

1. The Return of Strategic Tariffs

In 2025, the U.S. doubled down on tariffs to support key policy goals:

Instead of blanket duties, policymakers targeted specific sectors. The aim was less about broad protectionism and more about strategic leverage. The result? A complex patchwork of new rules that importers must navigate.

2. Key Sectors Affected

Impact On the Automotive Sector

In April 2025, the U.S. imposed a 25% tariff on passenger vehicles and light trucks. A month later, auto parts also faced the same rate. The goals were to:

Impacts on Businesses

Metals & Raw Materials

Early in 2025, aluminum duties rose from 10% to 25%, matching steel’s long-standing rate. These moves:

Business Reactions

Technology & Electronics

The government opened a new probe into semiconductor imports under trade-law authorities. While existing duties on Chinese electronics remain, this investigation could:

Industry Response

Consumer Goods & Retail

A broad “all-imports” tariff hit products previously without duties. It covers:

Retailers are:

Maritime & Infrastructure Equipment

New levies target foreign-built ships, port cranes, and cargo handlers. The goal:

Affected Businesses

Agriculture & Food Imports

Most farm products remain duty-free. But some inputs face higher costs:

Meanwhile, export markets remain uncertain as trade partners consider retaliation. Farmers and food processors are watching both sides of the border closely.

3. How Businesses Feel the Change

Across industries, companies report similar challenges:

Higher Input Costs

Duties on parts, raw materials, and finished goods push up production expenses.

Supply-Chain Rethinking

To avoid duties, businesses look for domestic or nearshore suppliers.

Compliance Strain

New rules require updated filings, code checks, and staff training.

Pricing Decisions

Some firms absorb higher costs to keep their market share. Others pass them on, risking lower demand.

A recent survey of import managers found that over half are exploring alternative sourcing or asking for duty relief to protect margins.

4. Steps to Manage Tariff Costs

Here are practical steps you can take to reduce the impact of new duties:

Audit Your Harmonized Tariff Schedule (HTS) Classifications

Make sure your goods use the correct Harmonized Tariff Schedule (HTS) codes. Misclassification can trigger higher duties and audits.

Leverage Duty-Deferral Tools

Foreign-Trade Zones (FTZs) and bonded warehouses let you delay duty payments until goods leave the facility or are sold.

Explore Trade-Agreement Exemptions

Many items qualify for zero duties under U.S.-Mexico-Canada Agreement (USMCA) or other treaties. Review your supply chain for eligible products.

File for Exclusions or Remissions

If no U.S. alternative exists, you may petition for an exclusion. Gather clear evidence of need and follow the U.S. Customs process.

Negotiate Long-Term Deals

Lock in pricing and delivery terms with suppliers. Some may offer tariff-inclusive contracts to share the risk. Tariff policies change quickly. Work with a customs broker to get real-time updates and expert guidance.

Conclusion: Preparing for a Tariff-Focused Future

Tariffs in 2025 reflect a strategic shift in U.S. trade policy. They protect key industries and push for more onshore production. At the same time, they raise costs and complicate global supply chains. Your business needs to adapt:

Clearit USA stands ready to guide you. We offer:

Ready to turn tariff challenges into opportunities?
Contact Clearit USA today for a customized customs consultation. Let us help you control costs, stay compliant, and keep your operations running smoothly.

On April 21, 2025, the U.S. Department of Commerce finalized new tariffs on solar panels and components imported from Malaysia, Thailand, Cambodia, and Vietnam. The decision stems from findings that certain Chinese companies circumvent existing tariffs using factories in these countries. Here’s what this means for importers and solar developers across the U.S.

The reason? According to the U.S. Commerce Department, some Chinese companies have circumvented existing tariffs by routing products through Southeast Asia. Let’s break down what this means and what importers like you can do about it.

Why Are These Tariffs Happening?

1. Companies Were Avoiding Tariffs

The U.S. had already imposed taxes on Chinese solar panel makers when they sold products to American buyers. To avoid those tariffs, the companies began using factories in Southeast Asia. However, the same Chinese companies own or control many of those factories.

So, the U.S. viewed this as a circumvention of existing trade duties and started an investigation.

2. U.S. Solar Companies Filed a Complaint

Major American solar manufacturers like Hanwha Qcells and First Solar said this hurt their business. They argued that cheap panels from Southeast Asia were driving prices down and making them unable to compete.

3. The Government Investigated and Acted

After looking into it, the U.S. decided to apply new tariffs to imports from those countries, especially companies that didn’t cooperate with the investigation.

How Big Are the New Tariffs?

Here is the breakdown of tariff rates for different countries:

The message is clear: cooperation = lower penalties, while companies that didn’t help the investigation got hit hard.

What This Means for U.S. Importers

These tariffs will likely increase costs if you’re importing solar panels or planning a solar project.

1. Prices Are Going Up

Industry experts say prices may rise by $0.08–$0.12 per watt. A typical commercial project (100 kW) could translate into an additional $8,000–$12,000 in costs per project.

2. Projects Might Get Delayed

Many developers are now rethinking their timelines or budgets. Some customers are holding off because of the new prices.

3. Suppliers Are Shifting Again

To avoid tariffs, some manufacturers are moving operations to countries like Indonesia or Laos, which aren’t yet affected by these new rules.

What Can You Do About It?

Here are five smart steps importers can take to reduce the impact:

1. Double-Check Your Product Codes

If you don’t classify your goods under the correct HTS code (8541.40.6030 for solar cells), you could end up overpaying.

2. Use Duty Deferral Programs

Consider using Foreign-Trade Zones (FTZs) or bonded warehouses to delay paying duties until you’re ready to sell or use the products.

3. Watch for Exemptions

The government may open a window to ask for exemptions. You can apply for relief if your products are unique or not readily available elsewhere.

4. Look at U.S. or Other Suppliers

Panels from the U.S. or countries not hit with tariffs may cost more upfront, but they could save you on duties.

5. Lock in Long-Term Deals

Negotiate pricing terms now—some suppliers may offer fixed rates to support long-term planning during this volatile period.

Key Dates to Watch

How Clearit USA Can Help

We know these changes are stressful. That’s why we’re here to guide you every step of the way.

Need Help Navigating These Changes?

Don’t let new tariffs stall your business.
Clearit USA is here to help you import smarter, save money, and stay compliant.

Talk to a customs expert today!
We’ll help you keep your solar projects moving and your costs controlled.

On April 9, 2025, President Donald Trump announced a 90-day pause on most of his proposed international tariffs. This decision followed a period of heightened market tension and widespread calls from trading partners for renewed negotiations. While the pause brings temporary relief for U.S. importers, it also creates a narrow window of opportunity to reassess strategies and prepare for future changes in the trade environment.

This article explains what the tariff pause means for U.S. businesses, what steps importers should consider now, and how to protect your bottom line during these uncertain times.

Understanding the Tariff Pause

The new policy reduces tariffs to a 10% baseline for most countries. However, China remains an exception, with tariffs hitting 125%. Policymakers introduced the move to ease market tensions and allow time for negotiations. Investors need to note that:

What This Means for U.S. Importers

The 90-day pause is more than just a break in tariff increases—it is a chance for importers to adjust and prepare. During this time, businesses can:

Review Existing Supply Chains

Identify which components or raw materials come from countries affected by potential future tariff hikes.

Explore Alternative Sourcing

Find suppliers in countries with better trade terms or lower tariffs. This may include diversifying your supplier base to reduce risk.

Stock Up on Key Inventory

Consider increasing inventory levels of high-demand items that may become more expensive once the U.S. reimposes higher tariffs.

Engage in Policy Advocacy

Join industry groups or business councils that lobby for fair trade practices. Stay engaged with policy updates that can affect your importing strategy.

Reassess Pricing Structures

Analyze how upcoming tariff adjustments could affect your cost structure and revise pricing strategies if needed.

Strategic Actions for Importers

While the pause is temporary, strategic planning now can lead to long-term savings and stability. Some key actions include:

Utilize Duty Mitigation Programs

Consider using Foreign Trade Zones, bonded warehouses, or duty drawback programs to reduce duty costs.

Review Product Classification

Double-check that you’ve correctly classified your products under the appropriate tariff codes. Misclassification can result in unnecessary duties and delays.

Monitor Regulatory Updates

Keep a close eye on announcements from the U.S. Trade Representative (USTR) and the Department of Commerce. Being informed can help you react promptly to any changes.

Strengthen Customs Partnerships

Work with customs brokers, like Clearit USA, who can help you navigate regulatory complexities and ensure smooth clearance for your goods.

Plan for Flexible Supply Chains

Build flexibility into your supply chain to quickly shift suppliers or adjust transportation routes if tariffs change.

Impact on North American Supply Chains

The tariff pause affects more than individual import costs; it has broader implications for North American supply chains. U.S. companies that source goods from Canada and Mexico have built their processes around predictable duty rates. The following points cover these impacts:

Next Steps for Importers

As the tariff pause window remains open, importers should:

By taking these practical steps, businesses can not only save on costs but also improve long-term resilience in the face of policy changes.

Conclusion

The current 90-day tariff pause is a crucial period for U.S. importers. While it provides temporary relief from steep duties, it also signals uncertainty ahead. Importers must use this window to review supply chains, adjust sourcing strategies, and engage with regulatory updates. Taking proactive measures now will help ensure that when tariffs eventually change, your business is well-prepared.

Clearit USA is here to help you navigate this complex landscape. Our team of experts and customs brokers will work with you every step of the way, ensuring your shipments clear smoothly while you keep costs under control.

In April 2025, the U.S. government introduced a sweeping 104% tariff on a range of goods imported from China. This policy marks a significant shift for importers. This blog explains what the tariff means, how it affects your business, and what you can do about it.

Let’s break it down in this article.

What Is a 104% Tariff?

A tariff is a tax you pay when you bring products into the country. This new tariff is 104%. That means if your goods cost $10,000, you’ll now pay an extra $10,400 in taxes. That’s more than the product’s original cost—a major financial burden for importers.

This tariff targets products made in China, including electronics and car parts. The goal is to protect U.S. industries and reduce reliance on Chinese manufacturing.

Why Did This Happen?

This tariff is part of a larger trade strategy. U.S. leaders believe China has created unfair market conditions and want to support local factories and jobs. This 104% tariff aims to make Chinese goods less attractive in the American market.

But that comes with a cost, especially for businesses like yours.

How This Tariff Affects Importers

If you import from China, everything changes. Here’s how your business may feel the impact:

Higher Costs

You’ll pay more at the border. This increase can hurt your profit margins or force you to raise prices.

Supply Chain Disruptions

You may need to switch suppliers. That takes time, effort, and money.

Reduced Competitiveness

Businesses sourcing from tariff-free regions may offer lower prices, gaining an advantage over companies importing from China.

More Paperwork

High tariffs often bring stricter documentation rules. Customs officials will closely examine your shipments, product origin, and classification.

What Products Does the Tariff Affect?

The full list includes many goods. Here are some major categories:

You must review your import plan if your products fall into these categories.

Are There Any Exemptions?

Yes, but they’re limited. Some companies have requested exclusions or waivers, especially for goods not made in the U.S. However, the exclusion process is often lengthy and uncertain, with no assurance of approval.

How to Stay Compliant and Avoid Penalties

With higher duties come stricter inspections. Customs will pay more attention to how you classify your goods and what country they’re coming from. Mistakes in documentation can result in:

To stay compliant:

What Can You Do About It?

You’re not stuck. Here are the steps you can take to adapt and stay ahead:

Recheck Your Tariff Classification

Make sure you’re using the correct HTS code. A small error in classification can cost you thousands in extra duties.

Review Country of Origin

If your product is only assembled in China but uses parts from other countries, you might reduce the duty with a proper origin review.

Consider Alternative Suppliers

Now is a good time to explore manufacturers in countries like Mexico, Vietnam, or India.

Work With a Customs Broker

Let’s be honest—tariff codes, country-of-origin rules, and customs forms can be overwhelming. Clearit USA helps importers like you file correctly, stay compliant, and avoid surprises.

How Clearit USA Helps You

When you work with Clearit USA, you get expert support for every shipment:

Accurate Classification

We assign the correct HTS codes and review for duty reduction opportunities.

Duty Management

We help you explore legal ways to lower or defer duties.

Real-Time Support

Our team responds quickly and keeps your shipments moving.

Full Transparency

We explain every step in plain English.

We guide you through the process, whether this is your first import or your thousandth.

Will This Tariff Stay?

This tariff may not last forever. Future policy changes could lower or remove it. But for now, it’s here—and it’s real. If you import from China, you need to act now.

Staying informed is smart. Having a customs expert by your side is even smarter.

Conclusion

The 104% tariff on Chinese goods is a major shift. It raises your costs, slows your supply chain, and changes how you do business. But you don’t have to figure it out alone.

You don’t have to navigate these changes alone. If you’re uncertain how this tariff impacts your products, contact Clearit USA for expert guidance and stress-free compliance.

The U.S. government has recently introduced new tariffs on imported vehicles, sparking concerns among industry experts, manufacturers, and consumers. These tariffs aim to protect domestic production by incentivizing consumers to purchase American-made cars. However, the policy has mixed effects that ripple across the auto industry and the economy. In this blog, we explore what these tariffs mean for automakers, how consumers react, and the future of the vehicle market.

What Are the New Tariffs?

The new tariffs increase the taxes on foreign-made vehicles imported into the United States. The primary goal is to boost local manufacturing and safeguard American jobs. The government aims to encourage consumers to choose domestic models by increasing the cost of imported cars. However, the tariffs come with challenges like:

Increased Costs

Higher taxes raise the overall price of vehicles.

Supply Chain Adjustments

Automakers are forced to rethink their sourcing strategies.

Market Shifts

Both consumers and manufacturers must adapt to a changing economic environment.

Impact on the Auto Industry

Higher Costs for Automakers

Automakers that rely on imported parts now face additional expenses. Even U.S. brands that incorporate foreign-made components may experience increased production costs. This means that the production cost could drive higher prices if you buy a foreign brand or an American one. 

Key points include:

Supply Chain Disruptions

Global supply chains have become a standard part of the auto industry. A tariff on imported vehicles disrupts this interconnected system. Automakers might face several challenges:

Shifts in Job Markets

The tariffs are intended to strengthen domestic production and create more American jobs. However, the actual impact on employment is complex. Some of these impacts include:

How Are Consumers Affected?

Higher Car Prices

As manufacturers and dealerships absorb higher production costs, the price tag on vehicles is likely to increase. Consumers will notice the following effects:

Financial institutions might adjust interest rates in response to market uncertainties.

Limited Choices

Consumers who prefer imported models might find fewer options or face higher prices. This situation can lead to:

Consumer Behavior and Adaptation

Faced with higher costs and fewer choices, consumers are adapting their purchasing habits:

Economic Ripple Effects

Impact on Related Industries

The effects of these tariffs extend beyond the auto industry. Other sectors that depend on international trade might also feel the impact:

Global Reactions

Foreign countries affected by these tariffs may respond with their measures, which can lead to:

Future Outlook

Industry Adaptation

Over time, both the auto industry and consumers will adjust to the new economic reality:

Policy Evolution

Government policies might evolve as the market reacts to the tariffs:

What Consumers Can Do

Amid these changes, consumers can take proactive steps to manage their car purchases:

Conclusion

Introducing new U.S. tariffs on imported vehicles creates opportunities and challenges. While the policy aims to bolster domestic manufacturing and create jobs, it also leads to higher prices and supply chain shifts. As the auto industry and related sectors adjust to these changes, consumers are likely to see gradual shifts in pricing, available models, and financing options.