February 2025 Newsletter
25% Global Tariff on Steel and Aluminum: What it Means for U.S. Importers
The latest tariff announcement is set to shake up supply chains across industries. A 25% tariff will apply to all aluminum and steel imports starting March 12, with no exemptions – not even for long-time trade partners like Canada and Mexico.
This marks a major escalation from the previous 10% tariff on Chinese steel, closing off loopholes that allowed importers to reroute goods through Mexico or other countries to avoid extra duties.
Which Products Will See Price Increases?
This tariff will hit a wide range of industries, from construction to automotive to consumer goods. Businesses should expect higher costs for:
Industrial and construction materials – Steel pipes, beams, and aluminum sheets, essential for infrastructure projects, will now come with a hefty price tag.
Automotive manufacturing – Car parts like wheels, exhaust systems, and engine components will be more expensive, potentially driving up vehicle costs.
Home appliances and electronics – Microwaves, refrigerators, televisions, and even laptops that use aluminum casings will see price increases.
Canned goods – Food and beverage products packaged in aluminum cans will be impacted, leading to potential grocery price hikes.
Imports of Steel Have Been Rising for Decades
Despite past tariffs, U.S. steel imports have been climbing since 2000 as manufacturers rely on cheaper foreign materials. This latest move aims to reverse that trend by forcing businesses to buy American-made steel and aluminum—but will it work? We aren’t sure.
What Should You Do Now?
With these tariffs now unavoidable, businesses that rely on steel and aluminum imports should:
Plan for cost increases – Factor higher material costs into pricing and budgets
Explore alternative suppliers – Look at domestic production options or suppliers in countries where costs may still be competitive despite tariffs.
Speed up shipments – If you have steel or aluminum orders in progress, work with your logistics partners to ensure they clear customs before the tariff fully takes effect – March 12.
With supply chains in flux, staying ahead of these changes is critical. Do you need help navigating the impact of these tariffs on your imports? Let’s talk.
E-Commerce Shift: U.S.-China 10% Tariffs and End of the De Minimis
In the beginning of the month, President Donald Trump announced a 10% tariff on Chinese imports, and the suspension of the “$800 de minimis” provision.
The 10% tariff is already in effect. However, the implementation of the de minimis cancellation has been delayed to allow the Commerce Department to establish adequate systems for processing and collecting tariff revenue.
This is another case where we are waiting and watching to see what exactly will happen, and when.
Air Freight Rates Down:
Air freight rates are shifting fast with the latest de minimis updates. When Trump announced the cancellation, rates dropped from $5-6/kg to just $1.50/kg as Chinese e-commerce giants (Aliexpress, Temu, Shein etc) halted small parcel shipments, freeing up air space. With the de minimis ban now delayed, they’ve resumed shipping, and rates have climbed back to $2.50-$3.50. If the ban does go through, air freight could become a more affordable option for you – instead of the premium choice it has been until recently.
A Boost for U.S.-based Ecommerce:
While the 10% tariff means higher costs on Chinese imports, it’s also designed to shake up the competition. By disrupting the small parcel dropshipping model Chinese sellers rely on, they’ll have to import like the rest of us—meaning their pricing will be much closer to ours. The goal is to give U.S. manufacturers, suppliers, and importers a fairer shot and create a more level playing field for American retailers.
Not Eligible For Exemptions
The new 10% tariffs for China are not eligible for duty drawbacks and not compatible with FTZs (Free Trade Zones) or other forms of privileged entry. This means if you are bringing goods through the U.S. for sale elsewhere, you will still have to pay the 10% and cannot claim it back.
Take Advantage of De Minimis Cancellation Delay
If you have any shipments under $800 value, these are still exempt from customs as of now.
Canada and Mexico Tariff Delay: What's Going to Happen?
On February 1, 2025, President Donald Trump signed executive orders imposing 25% tariffs on imports from Canada and Mexico, with an initial implementation date of February 4. However, agreements with both countries have delayed these tariffs until March 4, 2025.
We’re at a point where we are unsure whether and how this will even happen, but in the meantime, here’s what we suggest.
Actionable Steps:
Be Prepared for More Delays
There isn’t necessarily time to get more merchandise manufactured and shipped to arrive in time in the event of the tariff hike coming about on March 4th. But it doesn’t hurt to get that process moving in the event that another delay will happen.
Expedite Customs Clearance
Do whatever you can to prioritize and expedite shipments from Canada and Mexico to ensure arrival and customs clearance before March 4, 2025.
Coordinate closely with your suppliers and logistics partners to fast-track orders and minimize transit times, especially to prevent unnecessary delays for whatever is already in transit.
Explore Alternative Sourcing or Routing:
If you do source in Canada and Mexico (or China – see below), it is time to identify and engage suppliers in countries not affected by the new tariffs.
If you have been routing shipments through Canada or Mexico, contact us for alternate routes.
FTZ’s Cannot be Used
Trying to avoid paying a large customs charge in one payment by storing goods temporarily in a FTZ (Free Trade Zone) before clearing customs will not work for this extra tariff. It will all have to be paid in full on entry to the USA.
And finally, our last actionable tip is just stay flexible. We don’t know yet to what extent Canada and Mexico will retaliate and whether that will further effect delays or changes to the current 25% tariff plan.
Amazon Sellers – A New Way of Shipping
If you want to avoid the inbound placement fee and benefit from consolidated shipping, join the next Amazon Sync consolidation. Rates will be available on February 15th.
Secure your spot and optimize your Amazon logistics today! Let us know by email to Sync@Simpleforwarding.com
