Understanding Tariff Impacts: Insights from Freight Currents Q2 2025

Freight Currents Q2 2025 - A Recap

Our latest Freight Currents session, Simplifying the Latest Tariff Updates: What's Changing & Tools to Take Action, provided a comprehensive overview of the current tariff landscape, with a particular focus on goods made in China. This session aims to equip supply chain professionals with the knowledge they need to navigate the complexities of international trade. The session featured expert insights from Shannon Dillinger, Vice President of Trade Compliance and Krissy Fannon, Global Import Compliance Manager at UWL, who delved into the intricacies of tariff stacking, key exemptions, and recent changes in tariff rates. If you missed the live event, don't worry—you can access the slides, Tariff Impact Guide and other valuable resources on the post-event resources page.

Current Tariffs on Goods Made in China

One of the central topics of the Q2 2025 Freight Currents session was the current state of tariffs on goods made in China. Shannon and Krissy provided a detailed breakdown of how these tariffs have evolved and what they mean for businesses importing goods from China.

Shannon explained, "The original Section 301 tariffs, which started in 2018, have undergone several modifications. While many exemptions initially allowed importers to avoid these duties, most have since expired, making it crucial for businesses to stay updated on the current list of applicable tariffs."

The session also touched on newer measures, such as the fentanyl-related tariffs and the International Emergency Economic Powers Act (IEEPA) tariffs, which add further complexity to the tariff landscape. Understanding these overlapping tariffs is crucial for businesses looking to minimize costs and maintain compliance.

Key Exemptions and How to Utilize Them

Understanding and utilizing tariff exemptions can significantly reduce the financial burden on businesses. Shannon and Krissy spent a considerable portion of the session discussing the various exemptions available and how to take advantage of them.

"Currently, there are a few key Section 301 exemptions that businesses should be aware of," Shannon explained. "For example, the exemption 9903.8869 contains the largest number of tariff numbers for exclusion, although this is set to expire on May 31, 2025. There are also exemptions for certain medical products, donations, and informational materials."

Krissy added, "It's crucial to stay updated on these exemptions and understand the specific criteria for each. For instance, the recent Section 301 modification includes specific commodities like solar cells and syringes, but the list is much shorter than previous ones."

Krissy emphasized the importance of understanding the nuances of each tariff and exemption. "It's not just about knowing the rates; it's about understanding how they interact with each other. For example, if you're paying Section 232 duties for any part of the value of your goods, the goods are eligible for exemption from the IEEPA Reciprocal Tariffs."

The session provided links to comprehensive lists of exemptions and explained how to determine if your commodity qualifies. Utilizing these exemptions can save businesses significant amounts of money and should be a key part of any tariff strategy.

Navigating Tariff Stacking: Challenges and Solutions

One of the most complex aspects of the current tariff environment is the concept of tariff stacking. This occurs when multiple tariffs apply to a single product, significantly increasing the total duty rate. Shannon and Krissy highlighted the challenges this poses and offered practical solutions for navigating this complexity.

"Tariff stacking can be incredibly confusing," Krissy noted. "You need to pay the duty rate of the commodity's original tariff, plus the original Section 301, plus the fentanyl tariff, and so on. The total duty rate can quickly add up, impacting your bottom line."

To help businesses navigate this maze, the session included a detailed explanation of how to determine which tariffs apply and in what order. They also provided a decision tree for the IEEPA reciprocal tariffs and other resources around exemptions to assist in this process. These tools can be invaluable for businesses looking to ensure they are not overpaying on tariffs or inadvertently violating regulations.

Recent Changes in Tariff Rates and Their Impacts

The session also covered recent changes in tariff rates and their potential impacts on businesses. One of the most significant updates discussed was the temporary reduction in tariffs for goods from China, announced on May 12, 2025.

"For goods entered into commerce on or after May 14, 2025, the reciprocal tariff rate for China, Hong Kong, and Macau has been temporarily reduced from 125% to 10% for 90 days," Shannon explained. "This is a significant change that businesses need to be aware of."

Krissy added, "It's important to note that this reduction is temporary, and the rate is set to increase again after the 90-day period. Businesses should plan accordingly and consider the timing of their shipments to take advantage of this temporary relief."

"Discussions are actively happening now," Shannon mentioned, referring to ongoing negotiations between the U.S. and other countries. "We anticipate that the situation will continue to evolve, and it's crucial for businesses to stay informed and adapt their strategies accordingly."

These changes have far-reaching implications for supply chain strategies, and staying updated on the latest developments is crucial for making informed decisions.

Practical Steps for Adapting Your Supply Chain Strategy

Given the complexities and constant changes in the tariff landscape, adapting your supply chain strategy is more important than ever. Shannon and Krissy offered several practical steps for businesses to consider.

"First and foremost, stay informed," Shannon advised. "Make use of resources like the Freight Currents sessions and the post-event materials to keep up-to-date on the latest changes. Knowledge is your best tool for navigating these complexities."

Krissy emphasized the importance of flexibility, "Your supply chain strategy should be adaptable. Consider diversifying your supplier base to reduce dependency on any single country. This can help mitigate risks associated with sudden tariff changes."

Other practical steps discussed included leveraging technology for better tracking and compliance, conducting regular reviews of current tariffs and exemptions, and engaging with compliance experts to ensure all bases are covered.

Accessing Post-Event Resources and Further Guidance

For those who missed the live session or want to revisit specific points, the post-event resources page is an invaluable tool. It includes the session recording, presentation slides, and additional guides that can help you navigate the complex world of tariffs.

"All the resources we discussed today are available for download," Krissy mentioned. "These include detailed guides on tariff exemptions, decision trees for determining applicable tariffs, and links to comprehensive lists of current tariffs."

Shannon added, "We also encourage businesses to reach out to our compliance team for personalized guidance. Whether you have specific questions or need a comprehensive review of your supply chain strategy, our experts are here to help."

In conclusion, the Q2 2025 Freight Currents session provided a wealth of information and practical advice for navigating the current tariff landscape. By staying informed and utilizing available resources, businesses can better manage the complexities of international trade and optimize their supply chain strategies. For more information and access to all post-event materials, visit the resources page.

Disclaimer: Content is provided for educational purposes only and should not be construed as legal advice. While we strive to provide the most accurate & up-to-date information, especially given the volatility & constant change in today's environment, World Group & its subsidiaries do not assume legal liability for the content shared. Before you act on any information in this presentation, you should seek professional advice regarding its applicability to your specific circumstances. Information provided is as of May 21st, 2025.