Tariffs, Complexity and Opportunity

As the United States recalibrates its tariff landscape, importers (and DDP exporters) are navigating a rapidly shifting environment. With Section 301 tariffs on Chinese goods still firmly in place, it has never been more critical to understand which tariffs apply and how to calculate them.

In mid-May 2025, the US and China agreed to a temporary 90-day pause, reducing some of the steepest retaliatory tariffs introduced earlier this year. As a result the “Liberation Day” tariffs of 145% were reduced to 30% for a limited set of goods.

However, the vast majority of Section 301 tariffs of >20%, imposed since the original US-China trade war in 2018, remain fully in effect. These apply to thousands of products, from electronics and machinery to apparel, plastics, and consumer goods.

Even with the temporary relief, many Chinese imports still face aggregate duty rates between 25% and 45%, and in some categories even higher, depending on classification.

Meanwhile, other major trading blocs continue to face pressure:

• United Kingdom: 10% for automotives, capped at 100,000 vehicles annually 10% blanket tariff for most other goods including consumer goods, machinery, and textiles
• Canada & Mexico: A 25% duty now applies to most goods, with energy imports from Canada also hit by an additional 10% levy.
• European Union: Proposed 50% tariffs have been postponed until 9 July, but the delay only adds to uncertainty.
• Rest of World: Many categories of industrial and consumer goods continue to carry elevated Most-Favoured Nation (MFN) rates, while countries without a preferential trade agreement with the US face duties ranging from 5% to 25%, depending on classification.

This fragmented tariff regime has introduced significant compliance risk, particularly for shippers working across multiple geographies.

Compliance is Complex—and Getting it Wrong is Costly
With tariffs now applied differently by origin, product type, and trade agreement status, accuracy in classification and valuation is critical. Errors can lead to underpayment (and penalties), overpayment (and lost margin), or shipment delays.

Key areas of risk include:

• HS Codes (Harmonised System codes): A single digit variation can shift a product from a 5% duty rate to 25%. For example, a screw compressor may fall under HS code 8414.80.16 (duty-free) or 8414.80.90 (5.0%).
• Country of Origin Rules: Manufacturing in multiple countries complicates origin determination. A shirt assembled in Vietnam from Chinese fabric may not qualify for any duty relief under existing agreements.
• Valuation: Freight, insurance and packaging must be properly declared when calculating the dutiable value. Missteps here lead to unexpected cost and audit risk.

For exporters selling DDP, the challenge is even greater: you’re liable for these duties, meaning you absorb the cost of any errors. In today’s environment, even small misclassifications can compound across shipments, eroding profitability.

Turning Tariffs into Opportunity
While challenging, this tariff environment also presents strategic opportunities for those who are prepared:

• Supply Chain Diversification: Shifting sourcing to countries with lower US duty rates can generate meaningful savings. Even partial shifts can de-risk exposure.
• Tariff Engineering: By adjusting product configuration or final assembly location, shippers can legally change a product’s classification or origin. For instance, repackaging or minor reassembly in a third country may reduce duty rates.
• Bonded Warehousing & FTZs: Storing goods in US Foreign Trade Zones or bonded facilities can defer, reduce, or eliminate duty payments, especially when re-exporting or assembling in the US before domestic release.

Amid rising costs and intense global competition, such strategies can help turn tariff exposure into a competitive advantage.

We combine trade compliance expertise, global freight execution, and strategic planning to help you manage tariff risk and unlock supply chain opportunities.

• Expert customs brokerage teams based in the US
• Product classification and duty calculations
• Duty mitigation strategies, including bonded warehousing
• Trade lane analysis and landed cost modelling
• Supply chain rerouting and logistics reconfiguration

EMAIL Andrew Smith, Managing Director, to learn how Metro help you stay compliant, minimise supply chain risk, and unlock opportunities.