Flostream Announces Changes to USA Tariffs on Chinese-Origin Products

We would like to inform our valued customers about recent changes to the USA tariffs that may impact shipments of Chinese-origin products. These updates are crucial for planning and managing logistics and supply chain operations effectively.

Recent Developments:
On 4 February 2025, the US administration implemented new tariff regulations affecting imports from China and Hong Kong. These changes are part of ongoing efforts to address trade imbalances and protect domestic industries.

Changes for Products Manufactured in China & Hong Kong:

1. Additional Tariffs: An additional 10% tariff has been imposed on all goods imported from China and Hong Kong. This is in addition to any existing duties.
2. Suspension of De Minimis Treatment: The de minimis treatment, which previously allowed small shipments to enter the USA duty-free, has been suspended for goods from China and Hong Kong. All shipments, regardless of value, are now subject to applicable duties. Currently, this has been suspended and put on hold while the US government establishes the necessary structure to process these shipments as dutiable items. Therefore, operations will continue as they were prior to 4 February. Once the support structure is in place, these changes will be re-implemented.
3. Section 321 Waivers: Waivers under Section 321, which allowed for duty-free entry of goods valued at $800 or less, are no longer available for Chinese-origin products. Requests for de minimis entry and clearance for such shipments will be rejected. Currently, this has been suspended and put on hold while the US government establishes the necessary structure to process these shipments as dutiable items. Therefore, operations will continue as they were prior to 4 February. Once the support structure is in place, these changes will be re-implemented.
4. Postal Clearance Update: Parcels sent through the postal channel based on Terminal Dues will also be affected. The Universal Postal Union's terminal dues system ensures that the destination country's postal operator is compensated for handling, transporting, and delivering postal items. With the new tariffs, these costs will likely increase, impacting the overall shipping expenses for parcels from China and Hong Kong.

What This Means for Non-Chinese Products:

• No Direct Impact: Products originating from countries other than China and Hong Kong are not directly affected by these new tariffs. However, it's important to stay informed about any potential changes in trade policies that could impact other regions.
• Potential Indirect Effects: There may be indirect effects on global supply chains, such as shifts in sourcing strategies and changes in market dynamics. Businesses may need to adjust their logistics and procurement plans accordingly.

Next Steps:

1. Review Sourcing Strategies: Consider diversifying your sourcing options to reduce dependency on Chinese-origin products. Explore alternative suppliers from other regions to mitigate the impact of the new tariffs.
2. Update Pricing: Re-evaluate your pricing strategies to account for the increased costs due to additional tariffs.
3. Ensure Customs Compliance: Make sure all shipments comply with the new tariff regulations to avoid delays and additional costs.
4. Stay Informed: Keep abreast of any further changes in trade policies that may affect your business.

Flostream is collaborating with our supply chain to ensure that, once the US government has implemented the necessary structure, we have the appropriate options in place. Our customers will need to decide whether they will offer a DAP (Delivered at Place) solution or a DDP (Delivered Duty Paid) solution.

We understand that these changes may pose challenges, and we are committed to supporting you through this transition. Please do not hesitate to reach out to us for any assistance or further information.

Thank you for your continued trust in Flostream .

The Flostream Management Team