As of February 4th, 2025, the U.S. government has enacted new tariffs on imports from Canada, Mexico, and China. Some of these changes have been paused temporarily. We will continue to monitor this situation and provide updates regularly. If your business sources products internationally, fulfills orders cross-border or relies on cost-effective shipping, these tariffs may significantly impact operations.
First, we need to understand tariffs and de minimis:
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What are tariffs?
- Tariffs are taxes imposed on imported or exported goods by a government to regulate trade, protect domestic industries, or respond to foreign policies. They increase the cost of imported goods, making them less competitive in the market.
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What is de minimis?
- De Minimis refers to the threshold value below which imports can enter a country duty-free or with reduced customs processing. For e-commerce brands, lower de minimis thresholds mean higher costs on lower-value shipments, which could impact pricing and profit margins.
A 25% tariff has been proposed for imports of goods from Canada and Mexico; however, these are currently suspended. Certain Chinese goods now have a 10% tariff. The $800 U.S. de minimus rule remains in place for non-Canada, Mexico, or China-origin goods.
Passport is actively monitoring these changes and will make sure any updates are communicated. Please take a look at our blog posts here and here to learn more about how these new policies can affect international shipping and what Passport is doing to help our brands. Furthermore, visit trumptradetracker.com for the most recent updates. If you have any questions, please let us know!
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