Impact of the Us Tariff Increase Policy on Cross-border Logistics
Under the current complex and ever-changing Sino-US trade situation, the uncertainty of tariff policies has undoubtedly brought unprecedented challenges to the cross-border logistics industry. As an international logistics service provider, Chinadivision is well aware that B2B companies and e-commerce sellers are facing problems such as increased freight transportation costs, increased customs clearance risks, and difficulties in choosing logistics channels. This article will explore the specific impact of the US tariff increase policy on cross-border logistics from an industry perspective and provide you with a series of practical response strategies and solutions.
Table of Contents
Overview of the US tariff increase policy
Recently, the United States announced that it will impose a total of 104% basic tariffs on some Chinese goods on April 9, 2025. In addition, the tax-free policy below US$800 is planned to be cancelled on May 2, 2025, but whether it will actually be cancelled is still in a wait-and-see state.
How much impact does the US tariff increase policy have on cross-border logistics?
1. Rising costs
The tariff increase of up to 104% directly leads to a significant increase in the operating costs of cross-border e-commerce sellers. The increase in tariffs has increased commodity prices and compressed profit margins. If the costs are passed on to consumers, the market competitiveness of commodities will decline, thus affecting sales and profits.
2. Increased customs clearance risks
The uncertainty of tariff policies has increased the difficulty of customs clearance of goods. Customs may strengthen the review of the declared value of goods, especially for the behavior of under-reporting the declared amount. Once discovered, they will face the risk of destruction of goods, tax surcharges and high fines.
3. Increased pressure on logistics and supply chain
The frequent changes in tariff policies make it difficult for merchants who rely on a single supply chain to make adjustments quickly, resulting in increased difficulty in supply chain management, and prone to problems such as inventory backlogs and slow delivery. Changes in tariff policies have increased the complexity of logistics and supply chain management. Before the tariffs came into effect, many sellers concentrated on shipping, resulting in logistics runs and rising freight rates. In addition, customs clearance procedures have become more stringent and cumbersome, extending the customs clearance time and affecting the timeliness of logistics.
4. Decreased market competitiveness
Due to the increase in tariffs, the price competitiveness of Chinese goods in the US market has declined. US consumers may turn to low-priced products from other countries, and US local sellers may also take the opportunity to seize market share.
5. Limited choice of logistics channels
To avoid tariff risks, some sellers may choose informal logistics channels, such as "grey customs clearance" or "double customs clearance and tax package" services. However, these channels often have compliance risks. Once checked, the goods may be seized or destroyed, or even cause the logistics service provider to "run away", causing huge losses to the seller.
Matters needing attention and response strategies in cross-border logistics
- Pay attention to policy dynamics in a timely manner and plan logistics plans in advance
Policy tracking: Pay close attention to changes in US tariff policies, especially the scope of goods subject to tariffs and tax rate adjustments.
Early delivery: For goods that are greatly affected by tariffs, it is recommended to arrange delivery as early as possible to avoid additional costs caused by policy changes.
Multi-channel layout: Disperse logistics channels, avoid over-reliance on a single logistics method, and reduce risks caused by policy changes.
- Choose compliant logistics service providers to ensure the safety of goods
Qualification review: Choose logistics service providers with formal qualifications and good reputation to avoid losses of goods due to illegal operations of service providers.
Transparent operation: Require logistics service providers to provide detailed declaration information and customs clearance documents to ensure compliance with cargo declaration and avoid the risk of under-declaration or concealment.
Insurance protection: Purchase transportation insurance for high-value goods to reduce losses caused by unexpected events.
In a high-pressure policy environment, small logistics companies may not be able to perform their contracts stably or even run away with the money. It is particularly important to choose experienced, compliant and reputable logistics service providers.
- Optimize supply chain management and reduce operating costs
Localized warehousing: Consider setting up overseas warehouses in the United States to shorten logistics time and reduce tariff costs.
Product optimization: Reclassify or adjust packaging of goods to meet lower tariff rates.
Price adjustment: Adjust product pricing in a timely manner according to tariff changes to balance costs and profits.
- Layout localized operations
Overseas warehouse layout: Prepare goods in overseas warehouses in advance, complete tariff payment before goods enter the US market, and avoid the impact of additional tariffs.
Branded operations: Enhance consumer trust through branded operations and reduce the impact of tariff fluctuations on logistics.
- Expand diversified markets
Market diversification: Actively explore markets such as Europe, the Middle East, and Southeast Asia that have not yet imposed high tariffs, and reduce dependence on the US market. For the US market, it is necessary to adjust the transportation quotation according to the tariff policy to avoid low-profit orders from not being able to cover high-cost transportation costs.
Solutions provided by Chinadivision
As a professional international logistics service provider, Chinadivision has always been committed to providing customers with efficient and compliant cross-border logistics solutions. In response to the current changes in US tariff policies, we have taken the following measures:
- Test new logistics solutions
Chinadivision is actively testing new logistics channels and solutions to ensure that customers' goods can be shipped smoothly and reduce tariff costs as much as possible. Crowdfunding projects, promotional activities, and B2B purchase orders should give priority to the delivery time in April.
- Flexibly adjust logistics prices
According to changes in tariff policies, Chinadivision will adjust logistics channels and prices in a timely manner to provide customers with more competitive transportation solutions.
- Provide policy interpretation and risk warnings
We will promptly push the latest policy interpretations and risk warnings to customers through emails and the Chinadivision user center system to help customers prepare for response in advance. Some logistics providers may help you evade tariffs by declaring low values. Don't be fooled - this will increase your risk of legal risks, financial losses and supply chain disruptions.
- Full compliance guarantee
Chinadivision promises that all logistics operations comply with the laws and regulations of China and the United States to ensure that goods are declared in compliance and avoid losses caused by illegal operations.
Answers to common hot topics
After the US tariff policy changes, can my goods still be cleared normally?
As long as your goods are declared in compliance and the logistics service provider has formal qualifications, the goods can still be cleared normally. However, please note that the customs may strengthen the review of the declared value of goods, and it is recommended to prepare detailed declaration documents in advance.
How to choose a compliant logistics service provider?
When choosing a logistics service provider, you need to pay attention to its qualifications, reputation and service experience. It is recommended to choose a service provider with formal customs clearance qualifications, transparent operations and insurance protection.
Do you need to purchase insurance for your goods?
For high-value goods, it is recommended to purchase transportation insurance to reduce losses caused by unexpected events.
How to deal with rising tariff costs?
Tariff costs can be reduced by optimizing supply chain management, adjusting product pricing or choosing overseas warehouses.
Faced with the challenges brought by the US tariff increase policy, B2B companies and e-commerce sellers need to remain calm, adjust logistics strategies in a timely manner, and choose compliant logistics service providers to reduce operational risks. Chinadivision is willing to work with you to provide you with professional cross-border logistics solutions to help you move forward steadily in a complex and changing market environment.
If you need more help, please contact Chinadivision. We will provide you with professional logistics services to ensure the smooth operation of your business.
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About the Author: Limi
Limi is a content marketing expert at ChinaDivision, helping businesses and e-commerce sellers navigate the complexities of international shipping by providing actionable tips and comprehensive guides on logistics, shipping, and cargo transportation.