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Supply Chain Updates—February 7, 2025 Newsletter

February 7, 2025

CUSTOMER TARIFF ADVISORY: New Tariffs on Imports from Canada, Mexico, and China

Effective February 4, 2025, new tariffs will impact goods imported from Canada, Mexico, and China. While tariffs on Canadian and Mexican goods have been delayed for 30 days pending review, those on Chinese imports are now in effect.

Tariff Details:

  • China: 10% tariff on all goods (HTS 9903.01.20). Some exclusions remain until May 31, 2025.
  • Canada & Mexico: 25% tariff on most goods (HS 9903.01.10); 10% on certain energy products (HS 9903.01.13).
  • Tariffs apply in addition to existing duties and are not eligible for drawback.

Important Considerations

  • Goods already in transit before February 1, 2025, may qualify for exemptions if importers provide proper certification and documentation.
  • Section 321 de minimis treatment does not apply to products under these new tariffs. CBP guidance (CSMS 63988467 & 63988468) provides additional compliance details.

For specific concerns, read our tariff fact sheet or contact a member of our team.

The gap between truckload contract and spot rates has steadily narrowed as capacity tightens and demand slowly increases. With contract rates beginning to rise, shippers should anticipate potential rate volatility and evaluate their long-term transportation agreements. Adjusting procurement strategies now can help mitigate cost increases and ensure consistent capacity as the market shifts.

Shippers on Trans-Atlantic routes should anticipate reduced capacity as carriers adjust vessel deployments and alliances consolidate this month. For Asia-Europe shipments, congestion at major European ports like Rotterdam and Hamburg could cause delays. Planning ahead and securing bookings early will be crucial to avoiding disruptions.

As uncertainties around U.S.-Mexico tariffs continue, our expert team ensures smooth transportation across the border by managing all regulatory requirements and logistics, from raw materials to final delivery. With over 2.2 million square feet of warehouse space and dedicated drayage, our comprehensive cross-border solution mitigates delays and provides reliable, efficient transportation for your shipments. Contact Cross-Border Team

The European Commission has imposed anti-dumping duties of up to €0.74 per kilogram on titanium dioxide (TiO2) imports from China. If your shipments include TiO2, commonly used as a white pigment in coatings, paints, plastics, or paper laminates for furniture, we recommend reviewing with your account manager whether your cargo is impacted to ensure compliance and avoid unexpected costs.

The Pacific Coast Highway (PCH) has reopened after nearly a month of closure due to the Palisades Fire, but only one lane is available in each direction with limited speed and “essential traffic only” recommended. Our thoughts are with those impacted by the fire as recovery efforts continue. If your shipments rely on this route, be prepared for delays and potential hazards, including mud and debris flows, as cleanup and repairs continue along the highway.

US and UK ships have started to return to the Red Sea after Yemen’s Houthi rebels vowed to stop targeting vessels linked to those nations, signaling potential improvements in security for this vital trade route. However, while this move may increase confidence for other shipping companies, caution is still advised as the risk remains elevated in the region.

As supply chain leaders anticipate ongoing disruptions in 2025, they are focusing on flexibility, transparency, and strong relationships with partners to better navigate uncertainties such as tariff shifts and evolving sourcing strategies. Embracing a mindset of uncertainty as a competitive advantage, companies are also exploring technology investments, particularly in AI for forecasting and inventory planning, to enhance resilience and mitigate risks.

Tariff Updates:
  • EU and U.S. tariff implementation: The Council moved forward with negotiating mandates to implement tariff elements of the recent EU–U.S. joint statement, a step toward reducing import duties and creating tariff-quota rules.
  • U.S. tariff policy legal and policy actions: U.S. tariff rules are evolving with new developments and court actions closely watched by major news outlets and trade trackers, as they could impact how imports are treated.
  • EU carbon-border measures may be delayed and expanded: The European Commission may delay new carbon border proposals, which could expand tariffs to more products, until mid-December.
  • Global trade policy activity: Last month, Global Trade Alert and similar monitors saw a rise in trade and industrial policy actions, highlighting ongoing regulatory changes that exporters and importers should keep an eye on.
How Imperative Logistics Can Support You:
  • Tariff & classification review: We review your product classifications under the Harmonized System (HS) and the country-specific Harmonized Tariff Schedule (HTS) to ensure accurate duty treatment and help you maximize any applicable tariff exclusions, quotas, or preferential programs.
  • Regulatory-monitoring alerts: We can set up tailored alerts (custom watchlists) for tariff, quota, and carbon-border developments that affect your product categories and lanes.
  • Alternative routing & customs planning: Our team will evaluate alternative routings, transshipment options, and duty-deferral or bonded-warehouse strategies to reduce customs friction without changing commercial partners.

Have questions about how these tariff changes affect your shipments? Our team of experts is ready to provide guidance, please Contact Us anytime. For further details, please consult the latest Tariff Update and Reciprocal Tariff List for comprehensive information.

View the latest Tariff Information:

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