Four Topics That Could Affect Your 2025 Import Strategy

International trade is changing, and staying informed on regulatory shifts is necessary for maintaining a competitive edge. As 2025 approaches, importers face a crossroads with several trade topics that could reshape strategies, costs, and compliance requirements. This article delves into four pivotal issues that could impact U.S. imports in the new year.

Generalized Systems of Preferences (GSP)

The GSP trade program for goods of certain developing countries expired at the end of December 2020. The trade community has been waiting 4 years for Congressional reauthorization. Today, Importers can continue flagging GSP-eligible products on their customs entries, which could allow for automatic duty refunds if the program is reauthorized with a retroactive provision. Perhaps 2025 will be the year for reauthorization and savings.

De Minimis / Section 321 / Entry Type 86

Low-value duty-free clearances (USD 800 or less per person/day) have exploded to “4 million shipments a day, up from 2.8 million last year,” with B2C shipments rising. Along with more shipments come more unsafe and illegal products entering the U.S.

In January, the Customs ACE system will message customs brokers, warning them if a de minimis shipment may exceed an Importers’ daily threshold. Also, proposals to limit de minimis use have already been published in September. One proposal is to remove the de minimis option for goods made in China and subject to Section 301 tariffs. If enacted, this would have a hefty impact on the global trade community, with many consumer goods suppliers and importers needing to rethink their import strategy.

Forced Labor

Enforcement of products made in part or wholly with forced labor has been a priority this past year.  The Uyghur Forced Labor Prevention Act (UFLPA) Entity List has expanded to include over 100 entities, and to date, U.S. Customs has examined 10,633 shipments, denying a total of 4,524 from entry. In addition to UFLPA, a few withhold release orders (WRO) and a Finding were issued. There’s no reason to believe enforcement on this priority trade issue will disappear.

Vetting supply chains for forced labor and finding alternative suppliers should be a priority.

New Tariffs

On January 1, 2025, twenty-three Harmonized Tariff Schedule of the United States (HTSUS) will face Section 301 China tariff increases on tungsten, wafers, polysilicon, and on certain products in strategic sectors.

There’s been plenty of speculation on what will happen in 2025 when President-elect Donald Trump takes office on January 20, 2025. While there will likely be a change in some tariffs, it’s unknown what or when.  The countries of origin most likely to be affected are China, Mexico, and Canada. Unfortunately, we need to wait and see and be ready to pivot import strategy if required.

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