New 10% U.S. Tariffs

Understanding the New 10% U.S. Tariff on Chinese Imports: Updated in March 2025

On February 4, President Trump imposed an additional 10% tariff on imports from China, affecting businesses that source travel goods such as luggage, backpacks and handbags. 

What Is the New Tariff Policy on China?

In 2025, the U.S. government implemented a 10% tariff on all Chinese imports. This is now part of a multi-layered tariff structure that includes:

• Existing base tariffs (17.6%–20% depending on product category)
• 25% Section 301 tariffs from Trump's first term
• An additional 10% tariff added on March 4, 2025

These tariffs significantly increase the total duty burden on imported travel goods, with some items now facing over 50% in total tariffs.

Broader Tariff Strategy: March 2025 Update

The administration has expanded its tariff policy beyond China:

• +10% tariff on all Chinese imports (added March 4)
• 25% tariffs on most Mexican and Canadian imports (currently delayed)
• 25% tariffs on all U.S. steel and aluminum imports
• 25% tariffs on countries using Venezuelan oil

Reciprocal Tariffs

The administration plans to match tariffs imposed by other countries, particularly those with high import tariffs on U.S. goods (e.g., Bangladesh, Pakistan). Action is expected in April.

End of the De Minimis Rule – Delayed

Previously, companies used the "de minimis" rule, which allowed goods under $800 to enter duty-free. This was helpful for e-commerce players and small businesses.

On February 7, 2025, the Trump administration announced a delay in the suspension of the de minimis rule until "adequate systems are in place" for the Commerce Department to fully process and collect tariff revenue. Despite this delay, businesses should prepare for the eventual suspension of these benefits.

Impact on Travel Goods Imports

The new tariffs create a substantial cost burden for travel goods:

• Soft-sided goods: 17.6% + 25% + 20% = 52.6% total tariff
• Hard shell/plastic goods: 20% + 25% + 20% = 55% total tariff

The Executive Order also removes duty-free entry for Chinese-origin products under de minimis (Section 321) and bans duty drawback for U.S. imports from China.

U.S. Trade Deficit Focus

Countries with the largest 2024 trade deficits with the U.S.—China, Mexico, Vietnam, India—are likely to face more scrutiny and possible tariff action under the "Dirty 15" list, with updates expected by April 2, 2025.

How This Affects Travel Goods Companies

1. Higher Costs: Importers will pay more, which may increase retail prices.
2. Supply Chain Disruptions: Companies relying on China will face logistical challenges.
3. New Sourcing Strategies: Businesses may need to shift production to alternative locations.
4. Operational Changes: Some companies are storing products in U.S. warehouses to manage costs.

Step-by-Step Guide for Brands to Adapt

1. Review Your Supply Chain: Identify how these tariffs affect your business.
2. Find New Suppliers: Look for alternative manufacturing hubs with lower tariffs, e.g., Indonesia, Thailand, Cambodia.
3. Negotiate with Manufacturers: Discuss better pricing and flexible production terms.
4. Optimize Shipping: Consolidate shipments and explore cost-effective freight options.
5. Adjust Pricing: Decide whether to absorb costs or increase prices.
6. Ensure Compliance: Stay updated on U.S. trade laws to avoid penalties.
7. Use Trade Incentives: Explore free trade agreements or bonded warehouses.
8. Diversify Sales Markets: Reduce dependence on the United States by expanding to Europe and Canada.

Conclusion

The expanded tariff policy presents significant challenges for travel goods businesses. It raises costs and disrupts supply chains, but it also presents opportunities. By adjusting sourcing strategies, optimizing logistics, and exploring new markets, businesses can stay competitive.

If you're looking for reliable alternative suppliers, our B2B platform connects you with top manufacturers worldwide. Explore new sourcing opportunities to stay ahead in the travel goods market.