Over the past few years, US–China trade relations have seen repeated changes — with new tariffs, exemptions, and renewed restrictions.

In reality, the impact is concentrated in the following categories:

  • Industrial materials (such as steel and aluminum) and new energy products, including EVs, lithium batteries, and solar components.
  • Certain consumer products, including electric scooters; metal-based home appliances, like microwaves and dishwashers; wooden bedroom furniture; disposable plant-fiber tableware, and medical gloves.

This is no longer a short-term policy fluctuation, but a long-term dynamic shaped by supply chain security, industrial strategy, and global competition.

For small and medium-sized businesses in this environment, the key challenge isn’t avoiding duties entirely, but managing uncertainty, cost volatility, and supply-chain flexibility. In practice, most buyers are really trying to figure out:

What import taxes and fees do you need to pay?

Customs charges are not a single fixed number. In most cases, they’re made up of several parts: base duty rate + MPF + HMF.

Below is a breakdown of what each one means in practice.

Base duty rate (General duty rate)

This is the most basic import duty, determined by your product’s HS / HTS code. There are two common ways duties are charged:

1) Percentage of declared value (most common)

For example, if a pair of shoes is declared at $100 and the duty rate is 10%, you pay $10 in duty. Most consumer goods fall into this way.

2) Fixed amount based on quantity or weight

For example, rice may be charged $0.5 per kilogram, regardless of its value. This method is more common for agricultural products and raw materials.

Additional duties

Some products are subject to extra duties on top of the base rate. These usually come from Section 301, Section 232, or other China-related tariff measures introduced in recent years. Typically:

Medium-risk categories (7.5%–25%)

  • Certain high-end consumer electronics, machinery, and industrial products.

High-risk categories (25%–50% or even higher)

  • Semiconductors, AI chips, and other sensitive industries.

Always check the HTS code first, to see if your product is hit.

Merchandise processing fee (MPF)

This fee is charged by CBP for processing your customs entry.

Formal entry: charged at 0.3464% of the declared value

  • Minimum: around $30+
  • Maximum (cap): around $650
    Even if your shipment value is very high, MPF will not exceed this cap.

Informal entry (courier or postal parcels): a small flat fee, usually just a few dollars.

MPF amounts are adjusted annually.

Harbor maintenance fee (HMF)

HMF is charged at 0.125% of cargo value and is used to fund port construction and maintenance. Applies only to ocean freight.

⚠️ Not common, but good to know

Federal excise tax: applies only to a small number of products such as alcohol and tobacco. Most imported consumer goods are not subject to this tax.

If a shipment is inspected by customs or delayed at the port, extra costs occur, such as inspection fees and demurrage charges.

How do you check duty rates and estimate customs costs?

You can look up your product’s HS / HTS code and duty rates through official sources, such as HTSUS, CBP, and USITC website.

HS codes are classified based on a product’s features, usage, and manufacturing process. The first 6 digits are internationally standardized, while the last 4 digits are U.S.-specific subcategories.

Duty calculation example

Let’s say you’re importing a shipment of LED lights from China with a declared value of $5,000.

First, find the HTS code 9405.40.90. Then check the “General” duty rate, which is 5%.

Due to U.S.–China trade measures, you also need to check whether additional duties apply. In this case, the LED lights are subject to an additional 10% duty.

  • 5% (base duty) + 10% (Section 301 duty) = 15% total duty rate
  • $5,000 × 15% = $750 import duty charges

Practical reminders

1. Use third-party tools for quick estimates

With tools like the Freightos duty calculator, you enter basic details—such as product value, weight, and HS code—and the system can automatically estimate duties and other related charges.

2. HS codes can vary based on a product’s function, material, and intended use.

For example, even though both are plastic products, plastic tableware and plastic toys fall under different HS codes—and therefore have different duty rates.

If you’re unsure about your product’s HS code, contact your customs broker or freight forwarder directly. Based on product details—such as usage, material, how it’s used, and whether it’s for children—they can help confirm the HS code, calculate duties, and handle customs clearance and tax payment once the shipment arrives in the U.S. You simply pay the invoice issued by them.

If you’re shipping under DDP terms, your Chinese supplier will handle customs clearance and pay all duties and taxes on your behalf. You just wait for the shipment to arrive at your door. The DDP price already includes everything—product cost, shipping fees, duties and taxes.

Is there a way to reduce these high tariffs？

Short answer: Not in a simple or risk-free way.

When duty rates are high, it’s natural for buyers to look for ways to reduce the cost. But many of the so-called “tax-saving” approaches you see online are either non-compliant or carry serious risks.

1. Deliberately undervaluing your shipment is non-compliant.

Once Customs determines that a shipment is under-declared or misdeclared, you’ll be charged penalty duties. In serious cases, the goods will be held, seized, or sent back.

Note that a lower declared value does not mean lower risk. Products such as toys, lighting, and electronics already fall into higher inspection-risk categories in the U.S., which makes them more likely to be inspected.

2. Third-country routing is risky and costly.

This approach involves shipping goods to a third country and then importing them into the U.S. under a non-China origin. In practice, it carries significant compliance risk and often results in high transshipment and logistics costs.

3. Moving production outside China isn’t practical for most small buyers.

If shifting orders to countries like Vietnam, Malaysia, or India meant smooth production, on-time delivery to the U.S., no stockouts, and no excess inventory, this wouldn’t be a challenge in the first place.

The reality is that even a company like Apple hasn’t been able to fully make it work. For small and mid-sized buyers, moving production too quickly often means higher uncertainty & execution risk—not just the question of whether tariffs are higher or lower.

There are 3 main reasons:

  • Small orders come with higher setup and communication costs in Southeast Asia, while key parts of the supply chain still rely on China.
  • Significantly longer lead time: an order that may take around 25 days in China can take 60–90 days in Southeast Asia.
  • For new product development and sampling, Southeast Asia tends to rely more on replicating proven solutions developed in China.

For most small sellers, moving fast, testing products, and validating the market early often matters far more than theoretical duty savings.

U.S.–China duty rates are likely to keep changing in the coming years. For businesses thinking long term, the real focus isn’t just tracking policy changes—it’s whether you can build a more flexible supply chain that keeps running even when conditions are uncertain.

That’s where JingSourcing comes in. We help you build a more resilient supply chain that can better handle risk. In addition, for certain product types, we can provide smart, compliant solutions to help reduce the impact of tariffs on sourcing costs.

Finished goods vs parts

For some products—mountain bikes, for example—the duty on finished goods can be relatively high, while individual components are often subject to lower duty rates.

In practice, our buyers choose to import parts—such as frames, wheels, brakes, seats, and more—and complete final assembly locally before selling. This approach can save around $5,000 in import duties compared to importing fully assembled bikes.

High-spec vs. cost-optimized versions

Take an EV charger as an example. The high-spec version sells well in the U.S., but under higher tariffs, it often runs into a dilemma: raise the price and demand drops, or keep the price and margins disappear.

A more practical and commonly used approach is to scale back on one or two features, while upgrading another, to create a new version with different specs and positioning.

With a more controlled production cost, this new version can still retail in the U.S. at a price similar to the high-spec model—even after tariffs—while maintaining reasonable margins.

At its core, this approach isn’t about “saving on tariffs.” It’s a realistic adjustment of product design and market positioning in a high-tariff environment.

How to manage sample customs costs without the $800 rule?

Without the $800 duty-free threshold, many small shipments — including product samples — now require formal customs declaration and duty assessment.

The U.S. import process mainly involves three parties – Customs and Border Protection (CBP), state tax authorities, and couriers (such as UPS, FedEx, DHL). Since each party follows its own procedures, outcomes can vary a lot. 

In recent months, we have seen significant variations in clearance charges for shipments from China to the U.S. In such an environment, the most practical approach is to reduce uncertainty.

  • Consider using DDP terms so the supplier handles customs clearance and duty payment, reducing uncertainty for the buyer. Make sure to confirm with your supplier how these costs are included in the quote.
  • Consolidate sample shipments to spread fixed clearance-related costs.
  • Use a registered EIN for business imports where applicable.
  • Avoid under-declaring value, as it increases inspection and penalty risks.

 

How to Lower Sample Shipping Costs after the $800 Rule Change

Final thoughts

Duty rates change, but business must go on. At least for the foreseeable future, China remains the most cost-competitive and hardest-to-replace source in the global supply chains.

By estimating duties and other customs fees, then adding product costs and shipping, you can get a clear picture of your total sourcing cost.

Through product differentiation and more flexible supply chain management in China, it’s possible to absorb some of the uncertainties that come with fluctuating tariffs.