Essential Customs Strategies Shipping from China to USA
The customs landscape has become overwhelmingly complex for SMB importers. Duties have spiked, trade deals have been negotiated and re-negotiated, and border enforcement has tightened. Costs swing from one week to the next, making planning next to impossible, especially for those managing shipping from China to USA.
Recent volatility has been highly challenging for importers and customs brokers alike. However, the trade landscape is now showing signs of stabilization, which is a positive development for all U.S. businesses.
This guide provides essential insights and actionable strategies designed specifically for SMB importers. Whether you’re a first-time shipper or managing multiple lanes, you’ll find the customs rules, risk factors, and practical strategies you need. Let’s dive in.
Key Points:
- Current Tariff Landscape Overview: Tariffs from China to the U.S. are multi-layered, including original duties, Section 301 tariffs, and new tariffs, which significantly impact SMB import costs.
- Global Tariffs Shift on August 7, 2025: The U.S. announced reciprocal tariffs on over 60 countries, with some rates approaching 90%, marking the highest tariffs since the 1930s, affecting international trade dynamics.
- Impact on North American Trade with Canada and Mexico: USMCA-eligible goods remain duty-free, but non-compliant products face increased tariffs—25% for Mexico and 35% for Canada—adding costs to SMB supply chains.
- End of De Minimis Exemption: Effective August 29, 2025, all imports, regardless of size, now require customs clearance and duties, requiring SMBs to adapt their shipping strategies.
- Essential Customs Compliance and Cost-Management Strategies**: SMBs should focus on proper classification, valuation, and origin declaration, while exploring renegotiations, consolidations, and customs relief tools like FTZs and bonded warehouses to mitigate tariff impacts.
Understanding Today’s Tariff Landscape
First, an overview of where tariffs actually stand. Note: These tariff figures reflect conditions as of late August 2025. Tariff policies can change quickly, so always confirm current rates with your customs broker or a trusted partner like AEB Logistics.
China: A Multi-Layered Tariff Burden
China is a major player in SMB imports, and the volatility surrounding tariff from China to USA has presented a major strain. Current tariffs for imports from China to the U.S. stack up in layers:
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Your product’s original duty rate (the “Column 1” duty from the tariff book)
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Section 301 duties from the Trump era, ranging from 7.5–25%
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A new 30% tariff, made up of a 10% reciprocal tariff and a 20% “fentanyl tariff”
It is a common misconception that rates are a flat 30%. In reality, importers must account for the original duty, plus 301 duties, plus the new 30%. While this is far lower than the 145% levels seen earlier this year, it remains a heavy burden for any business engaged in shipping from China to USA.
August 7 Global Tariffs: A Worldwide Shift
On August 7, 2025, the Trump administration announced reciprocal tariffs on more than 60 countries, pushing some duties close to 90% – the highest since the 1930s.
Here are some notable examples:
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Switzerland: +39%, impacting watches, chocolate, and machinery
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India: +50%, including penalties tied to Russian oil, affecting pharmaceuticals
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Brazil: +50%
There was some good news: the EU, Japan, and South Korea secured lower 15% tariffs, while Vietnam and Indonesia saw reductions from 46% to 20%.
Canada and Mexico: Neighboring Nations, New Costs
North America has certainly not been spared in the trade wars:
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Mexico: Goods that qualify under the USMCA trade agreement can still enter the U.S. duty-free. But if your product doesn’t meet USMCA rules of origin, a 25% tariff now applies. A 90-day extension was granted, but this only delayed further escalation – it didn’t remove the 25% duty on non-USMCA goods.
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Canada: Goods that qualify under USMCA can still move duty-free, but anything that doesn’t meet USMCA rules of origin now faces a 35% tariff. On top of that, sector-specific rates apply: 50% on steel, aluminum, and copper, and 25% on vehicles.
These higher rates have put extra pressure on SMB importers given how closely integrated U.S. and Canadian supply chains are.
The De Minimis Era Ends
Another major change impacting shipping from China to USA and elsewhere is the end of the de minimis exemption, which previously allowed shipments under $800 to enter the U.S. duty-free. As of August 29, 2025, all imports, no matter how small, must go through customs and are subject to duties and fees.
For SMBs, especially e-commerce sellers that relied on sending large volumes of small parcels, this is a significant shift. Businesses must now shift their supply chain strategy and make adjustments, from consolidating shipments to exploring bonded warehouses or FTZs to manage costs and paperwork.
The Compliance Basics Every SMB Must Know
Customs compliance can feel complicated, but it boils down to three pillars. Getting these right is the first line of defense against penalties and delays.
1. Classification
Getting your product’s HS code right is the first pillar of compliance. Your HS code determines not only the duty rate but also whether special tariffs apply – and unfortunately, a single misclassification can completely change what you owe. For SMBs, this means taking extra care – don’t rely on the number your supplier suggests. Work with your customs broker or your AEB Logistics representative to double-check.
2. Valuation
Making sure invoices reflect the true price of your goods is another key component of compliance. Duties and tariffs are calculated on this declared value, so inaccuracies can lead to paying more later, or facing penalties if customs reviews your entry. Splitting invoices to show artificially low values is an especially risky practice. Even if a supplier offers this as a shortcut, the responsibility falls on you as the importer to ensure the declared value is correct.
3. Origin
Finally, your country of origin must be declared accurately, which is more complex than it sounds. If a product is assembled in one country but most of its parts come from another, figuring out where it was “made” depends on whether it underwent a substantial transformation. Importers cannot just take their supplier’s word for it; it is critical to know and understand their supply chain to ensure the declared country of origin is correct.
One growing concern is transshipment fraud, which means moving goods through a third country and falsely declaring origin. If companies are found to be fraudulently transshipping goods, not only will duties apply, but there’s an extra 40% tariff plus penalties – and potentially criminal liability.
The Challenges SMB Importers Face
The tariff environment hasn’t just raised costs – it has added layers of unpredictability that are especially tough for SMBs. With significant strain from these rapid tariff changes, smaller businesses lack the resources to predict or absorb these costs. That reality is showing up across supply chains, where SMBs are being hit on multiple fronts:
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Cost Uncertainty: Tariffs can change overnight, leaving importers with unexpected bills that throw off pricing, margins, and cash flow projections. Planning becomes extremely difficult when duty rates shift without warning.
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Supplier Viability: A sudden tariff spike can make some vendors uncompetitive, forcing SMBs to scramble for alternatives. That can mean rushing to qualify new suppliers or paying more to keep existing relationships going.
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Cash Flow Strain: Higher upfront duties tie up working capital that smaller businesses can’t easily spare. With limited flexibility, many SMBs find themselves choosing between paying duties and investing in the business.
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Border Delays: Enforcement has intensified, especially on the Canadian and Mexican borders. More inspections mean longer waits, disrupting timelines and adding uncertainty to already fragile supply chains.
Strategies to Reduce the Impact of Tariffs
Despite these challenges, SMBs have tools and strategies to manage costs. Here are key tips for navigating this new reality:
1. Renegotiate with Suppliers
Tariffs have put pressure on suppliers too, and many are more flexible than they used to be. Higher customs costs have opened up space for honest conversations about product costs. Suppliers are often more willing to negotiate now than ever. Do not be afraid to ask questions about product components and renegotiate prices.
For SMBs, that means asking detailed questions: Where are the parts sourced? Was the product substantially transformed in the country of assembly? Are there alternative materials or production methods that would lower duty exposure? Even small changes can make a difference.
2. Adjust Your Shipping Strategy
There are several levers SMBs can pull to ease the cost burden of tariffs.
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Consolidation: Combine multiple small shipments into a single larger one to reduce per-unit shipping and handling costs. This is crucial now that the de minimis exemption is gone.
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Modal Shift: Shift to ocean freight instead of air whenever timelines allow, as the price difference can be dramatic, helping to offset some tariff costs.
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Review Incoterms: It’s also worth revisiting your incoterms – with caution. Delivered Duty Paid (DDP) can sometimes be helpful because it gives you one clear, upfront price, but it can expose you to hidden risks if your supplier is under-declaring values. If a price seems too good to be true, it most likely is. Partnering with a shipping from China to USA expert like AEB Logistics can help you navigate these decisions.
3. Use Customs Cost-Saving Tools
Beyond shipping adjustments, SMBs can also tap into customs programs designed to ease the duty burden. Three effective relief tools for SMBs include:
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Duty Drawbacks: If you import goods and later re-export them, you can apply for a refund of the duties you originally paid. Billions of dollars in these refunds go unclaimed every year, often because SMBs don’t know they exist or assume the process is too complex. Working with a broker or trade professional can make drawback claims more manageable.
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Free Trade Zones (FTZs): These are designated areas within the U.S. where goods can be stored, assembled, or processed without paying duties right away. The main advantage is that FTZs let you lock in the duty rate at the time goods enter the zone, even if tariffs rise later.
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Bonded Warehouses: Unlike FTZs, bonded warehouses don’t lock in today’s duty rate, but they do let you delay paying duties until the goods leave the warehouse. This can be valuable for SMBs managing cash flow, since you only pay when the product is actually sold or shipped out.
In short: duty drawbacks can help you recover money you already paid, FTZs help you protect against tariff increases, and bonded warehouses help you ease cash flow by deferring duty payments.
4. Decide on Frontloading vs. Waiting
A common dilemma for SMBs is whether to import extra inventory now to secure current rates, or wait and see in case tariffs fall. The decision requires weighing risk tolerance and resources carefully. Frontloading makes sense when tariff increases are likely or scheduled, or when your products are particularly vulnerable to supply chain disruptions. On the other hand, if demand is uncertain or cash flow is tight, waiting may be the smarter choice.
Working Effectively with a Customs Broker to Manage Tariffs
A critical piece of advice is to engage with your customs broker early.
Classification, valuation, and origin are research projects, not something done on the fly once a shipment is moving. More investment of effort up front can save you hassles and extra costs.
To get the most value from your broker, and by extension, your logistics partner like AEB Logistics:
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Provide detailed product descriptions and supplier information
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Engage before goods are shipped
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Remember that brokers can help you minimize risks if you bring them into the process early
The concept of “reasonable care” in customs means an importer should be able to demonstrate they asked the right questions and made a diligent effort to comply.
What’s Ahead for Tariffs and Customs for SMB Importers?
The era of super cheap imports is over. However, the current stability in the trade landscape is a positive development. The worst part for many businesses was the constant unknown.
The tariff environment isn’t going back to the days of frictionless, cheap imports. But while risks remain with Canada, Mexico, and potential future escalations with China, importers can take comfort in the fact that the trade landscape is no longer shifting daily. For SMBs, that stability – combined with smart strategies and the right partners—offers a clearer path forward.
SMB Customs Action Checklist
Here’s a practical checklist to keep on hand:
✅ Engage with a customs broker or AEB Logistics early
✅ Review your HS codes for accuracy
✅ Audit invoices for accurate valuation
✅ Confirm country-of-origin claims with suppliers
✅ Renegotiate contracts where possible
✅ Consolidate shipments to save costs
✅ Explore FTZs, bonded warehouses, and duty drawbacks
FAQs:
What are the current tariff considerations for shipping from China to the USA?
Tariffs from China to the USA include original duties, Section 301 tariffs, and additional new tariffs, which collectively increase costs for SMB importers. These tariffs are layered and can significantly impact the total duty payable.
How do recent global tariff changes affect international trade?
Effective August 7, 2025, reciprocal tariffs on over 60 countries have reached levels approaching 90%, the highest since the 1930s, creating increased costs and trade challenges worldwide.
What is the impact of tariffs on North American trade with Canada and Mexico?
Goods meeting USMCA rules are duty-free, but non-compliant products face increased tariffs—25% for Mexico and 35% for Canada—adding extra costs to supply chains.
What does the end of the de minimis exemption mean for SMBs?
Starting August 29, 2025, all imports must undergo customs clearance and pay duties regardless of size, requiring SMBs to adjust their shipping strategies, such as consolidating shipments or using bonded warehouses.
What are some essential strategies for SMBs to manage customs compliance and tariffs?
SMBs should focus on accurate product classification, valuation, and origin declaration, while exploring renegotiations, shipment consolidations, and utilizing customs relief programs like FTZs and bonded warehouses to mitigate costs.
