Understanding the Latest Developments in U.S. Trade Policy and Tariffs

Major Changes to Steel and Aluminum Tariffs

One of the most significant recent announcements is the adjustment to steel and aluminum import tariffs. Effective June 4, 2025, the U.S. will increase tariffs on these materials and their derivatives from 25% to 50%. This decision follows findings from the Department of Commerce indicating ongoing threats to domestic steel and aluminum industries from low-cost foreign imports.

Key points to note:

• The 50% duty rate applies to steel and aluminum imports, as well as derivative products.
• Imports from the UK will remain at the 25% rate for now, due to the recent U.S.-UK Economic Prosperity Deal.
• Stricter compliance enforcement is expected, with CBP issuing new guidance on penalties for non-compliance.

This tariff increase may have significant implications for industries relying on imported steel and aluminum components. At FreightAmigo, we can help clients navigate these changes by providing up-to-date information on tariff rates and assisting with proper classification of goods to ensure compliance.

Changes to Reciprocal Tariffs and Trade Negotiations

The administration has also made several moves regarding reciprocal tariffs and ongoing trade negotiations:

• A 90-day pause on country-specific reciprocal tariffs for all trade partners except China.
• An increase in tariffs on Chinese imports to 125%, up from the previous 104% rate.
• Ongoing negotiations with various trade partners, with over 50 countries requesting meetings with the White House.

These developments highlight the fluid nature of current trade policies. FreightAmigo's Digital Platform provides real-time updates on tariff changes, allowing our clients to quickly adapt their shipping strategies as needed.

New Tariffs on Automobiles and Auto Parts

Another major policy shift is the implementation of a 25% tariff on imported automobiles and auto parts, effective April 3 and May 3, 2025, respectively. This tariff applies to a wide range of vehicles and components, including:

• Passenger vehicles, SUVs, minivans, cargo vans, and light trucks
• Auto parts such as tires, wheels, filters, seat belts, and many more

Importantly, there are provisions for USMCA-compliant vehicles and parts, allowing for reduced tariffs on U.S. content. As a Digital Logistics Solution provider, FreightAmigo can assist clients in the automotive industry with documenting U.S. content and navigating these complex new rules.

Changes to De Minimis Treatment

Effective May 2, 2025, the administration has eliminated de minimis treatment for imports from China and Hong Kong. This means that previously duty-free shipments under $800 will now face significant tariffs:

• Parcel shipments: 145% baseline tariff, plus product-specific tariffs
• Postal shipments: 120% baseline tariff or a $100 flat fee per item (increasing to $200 on June 1, 2025)

This change could have a substantial impact on eCommerce shipments from China. FreightAmigo's Digital Logistics Platform can help clients adjust their shipping strategies to minimize the impact of these new fees.

How FreightAmigo Can Help

As these policy changes demonstrate, the international trade landscape is more complex than ever. At FreightAmigo, we're committed to helping our clients navigate these challenges. Our Digital Logistics Solution offers:

• Real-time updates on tariff changes and trade policies
• Assistance with proper classification of goods
• Support in documenting compliance with trade agreements like USMCA
• Optimization of shipping routes and methods to minimize tariff impacts
• Expert guidance on customs clearance and regulatory compliance

By leveraging our Digital Platform and expertise, businesses can stay ahead of policy changes and adapt their supply chains accordingly. We're here to ensure that your international shipping remains as smooth and cost-effective as possible, even in the face of evolving trade policies.

Looking Ahead

The trade policy landscape remains dynamic, with ongoing negotiations and potential for further changes. FreightAmigo will continue to monitor developments closely and provide timely updates to our clients. By partnering with us, you can ensure that your business is well-prepared to navigate the complexities of global trade in this ever-changing environment.