U.S. Tariff Policies
U.S. Tariffs Update: What Luggage & Travel Goods Buyers Need to Know
Updated: September 1st, 2025
August 29 - Courts Strike at Trump’s Tariffs
A Federal Circuit ruling in V.O.S. Selections v. Trump found that the President exceeded his authority under IEEPA when imposing reciprocal tariffs. At the same time, a separate 7-4 federal appeals court ruling declared most of Trump’s global tariffs unlawful. Despite these rulings, tariffs remain in force until at least October 15 while the administration appeals.August 27 - U.S. imposed a 25% tariff on selected imports from India under IEEPA, citing India’s purchases of Russian oil.
August 18 - U.S. Section 232 tariffs of 50% extended to additional derivative products of steel and aluminum.
Key Takeaways
As of August 7, tariffs are fully in effect with record-high rates.
Section 232 steel/aluminum tariffs broadened on August 18.
India now faces up to 50% duties after August 27 tariff hike.
De minimis rules ended on August 29, raising costs for small shipments.
Tariff legality is under review, but duties remain in force during appeal.
1. New Tariffs Are Live
The U.S. has passed sweeping tariffs on imports from 68 countries, including the EU, Canada, Mexico, and Brazil, with rates reaching up to 50%. These took effect for goods loaded after August 7, 2025.
Key Country Tariffs
- Bangladesh 20%
- Cambodia 19%
- Costa Rica 15%
- India 25%
- Indonesia 19%
- Jordan 15%
- Lesotho 15%
- Madagascar 15%
- Malaysia 15%
- Mauritius 15%
- Myanmar 40%
- Nicaragua 18%
- Pakistan 19%
- The Philippines 19%
- South Africa 30%
- Sri Lanka 20%
- Thailand 19%
- Vietnam 20%
USMCA goods from Canada & Mexico remain duty-free. Mexico’s tariff pause is extended through October 30, 2025.
2. Deadlines You Need to Know
China tariff pause extended: On August 8, President Trump issued an executive order extending the tariff pause on China imports from the original August 12 expiration date through November 10, 2025. The April 2 tariffs on China remain announced but not yet active.
"On-the-water" exemption: Goods shipped before August 7, 12:01 AM ET are exempt until October 5, 2025.
De minimis exemption ends August 29: Low-value goods under $800 will now face full duties.
3. Enforcement & Compliance Risks
No changes to origin rules - “substantial transformation” criteria remain.
Transshipped goods may face up to 40% penalties, though definitions remain vague.
The Vietnam agreement (20% on exports, 40% for transshipped goods) lacks enforcement guidelines.
4. Broader Trade Impacts
Steel & aluminum tariffs rose to 50% on June 4; UK stays at 25% amid ongoing talks.
Tariffs now cover appliances and their parts, potentially affecting luggage designs (e.g., with metal reinforcements).
A potential U.S.–China truce extension was agreed in principle but awaits approval.
5. Supply Chain & Cost Pressures
China-origin shipments: A $50/ton surcharge begins October 2025, rising annually.
Container/chassis tariffs (20–100%) are increasing freight costs.
Reduced Asia–U.S. shipping routes may yield delays and higher prices.
6. Actionable Steps for Sourcing Teams
Search Luggage Manufacturers - explore suppliers in lower-tariff countries.
Refine Suppliers by Region - identify sourcing options beyond high-tariff zones.
Check and update HTS codes to avoid misclassification and excess tariffs.
Adjust shipment schedules to maximize exemptions.
Diversify suppliers beyond China and Southeast Asia.
Update cost models to reflect tariff hikes and communicate changes clearly.
Explore bonded warehousing for duty deferral.
7. Legal Challenges Are Ongoing
The court case V.O.S. Selections v. Trump challenges the President’s authority under IEEPA. A hearing was held on July 31, but tariffs remain active during the appeal.
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