Liberation Day Tariffs & End of De Minimis: Crucial Trade Updates

Tariff Update

On Wednesday, President Donald Trump announced a 90-day suspension of country-specific reciprocal tariffs for all trade partners, except China—just 24 hours after their implementation. As a result, all countries (except China) have reverted to the baseline tariff rate of 10%, which was initially set on April 5, for the duration of the pause.

China, however, saw an increase in tariff rates to 125%, up from 84%, which had been effective earlier this week. In retaliation to U.S. tariffs, China imposed an 84% reciprocal tariff on U.S. goods, effective April 10. Meanwhile, the European Union has suspended its retaliatory tariffs in response to President Trump’s reversal of the country-specific tariff policy.

On the same day, the White House issued an Executive Order titled "Restoring America’s Maritime Dominance," outlining a strategy to strengthen U.S. commercial shipbuilding capacity and enhance the maritime workforce.

A key focus of the Executive Order is addressing a loophole in the application of the Harbor Maintenance Fee (HMF), a fee designed to maintain U.S. ports and waterways. Many shippers had been avoiding the fee by offloading cargo at Canadian or Mexican ports and then transporting it into the U.S. by land. This workaround allowed them to bypass the fee despite the goods eventually entering U.S. ports.

The Executive Order seeks to close this loophole by ensuring that all foreign-origin cargo arriving by vessel must clear U.S. Customs and Border Protection (CBP) at a U.S. port of entry, where it will be fully assessed for duties, taxes, and fees, including the HMF. Additionally, foreign cargo entering North America through Canada or Mexico and then being transported into the U.S. by land—without substantial transformation—will incur the same fees, plus a 10% service fee to cover additional CBP processing costs.

Ocean Freight Update: Trans-Pacific Eastbound (TPEB)

Capacity and Demand: Shipping capacity in April has been significantly reduced, with around 20% of market capacity removed due to an increase in blank sailings. Some services have also been altered or temporarily suspended, tightening available space. The impact of the recent tariff hikes is beginning to affect demand, leading to a decline in shipping volumes and an expected rise in cancellations.

Equipment: Shipping equipment, including containers, remains widely available at most origin ports, with no major shortages anticipated in the near future.

Freight Rates: Floating freight rates have been extended through the end of April, with no expected changes. Additionally, the Peak Season Surcharge will not be applied in April and will remain at $0 for the month.