De Minimis shipping ends, the federal appeals court rules some of the Trump tariffs illegal, and deadlines for shippers loom. There is a lot to unpack this month, so let’s get to it in this month’s State of Freight!
Are The Trump Tariffs Illegal?
On August 29, 2025, a federal appeals court ruled President Trump’s IEEPA tariffs illegal. IEEPA stands for International Emergency Economic Powers Act under which the reciprocal country tariffs (10% China) and the trafficking fentanyl tariffs (20% China) were issued. IEEPA tariffs are issued under a national emergency. The question here is whether the US was really in a national emergency. The billions of dollars collected by the US Government for the past 8 months may have been ruled illegal at the moment, but the fight is far from over. The White House is expected to bring the issue to the Supreme Court for a final ruling. The courts will have until October 14th to make a final decision on the tariff’s legality. For now, the tariffs stay in place and importers continue to pay the price.
More Deadlines
While we wait for the Supreme Court and its October 14th deadline, there is another deadline looming for tariffs. IEEPA reciprocal and Fentanyl tariffs current rate for China is at 30% of the imported customs value of your goods. That rate is due to change on November 9. What happens to the tariff rate at that time remains a mystery. The fear is that the rate will rise and importers to the US will be paying even more tariffs than they are now. That is the fear, but it could also go the other way, and the rates could be reduced. It is anyone’s guess. Shipments arriving after November 9th will be subject to the new unknown tariff rate. To make the November 9th date, GPI is recommending getting those goods on the water by September 17. Depending on what part of the US you are shipping to, it takes between 17 and 42 days for goods to get from China to the US. Getting your goods underway by September 17 will give you enough time to make that November 9th date while still accounting for any unexpected delays, such as congestion, storms, and rolling or delayed vessel schedules.
The End of De Minimis
Although the De Minimis exemption for small package shipments has been gone from China and Hong Kong since May 2025, it has now ended for the rest of the world as well. The De Minimis Tax Exemption stated that any import to the US under $800 was too small to tax, so tariffs and taxes did not apply. That has now changed, and all small packages are subject to tariffs and taxes, or duties. International small package carriers are struggling to process the added duties. Some small package carriers, such as National Postal Services and DHL Germany, have now refused to ship international goods to the USA as they do not have the systems in place or the workforce to process the tariffs. FedEx, UPS, and DHL are still shipping to the USA, but expect delays as the small packages are processed through US customs. Consumers can expect a tariff charge added to the shipping charge, which will hurt consumers’ wallets. That $80 purchase from Temu coming from China is now $104, thanks to the end of the De Minimis exemption.
Peak Season Shipping
We are currently in peak season shipping, but import volumes, although steady, are down year over year. The tariff uncertainty had importers front-loading the year with goods in anticipation of higher rates to come. There are still plenty of goods shipping to the US, but we are not experiencing the shortages of cargo space that we usually see this time of year. Container rates have remained steady and have only risen slightly over last month’s rates, and ports are not experiencing the congestion they are used to at this time of year. Keep in mind, it takes a little over a month for your goods to get from China to the US, so if you need your product in stores by the holiday season, now is the time to ship.
Overall, manufacturing your goods in China or Hong Kong (or other countries for that matter) is still cheaper than manufacturing most goods domestically, even with tariffs in place. If you are interested in creating a game, a book, or something new and different, give GPI a call. We can manage your manufacturing projects and your shipping challenges with the same expertise we have had for years. Have a great September and keep your eyes on those deadlines!
