This week:
- White House amends tariff policy to temporarily restore de minimis exemption on imports from China
- President Trump issues new 25% tariffs on all imports of steel and aluminum, regardless of origin
- Despite tariff uncertainty, report shows US retailers still expect strong import volumes in coming months
- Analyst says Canada, Mexico tariffs would only have “minor impact” on North American intermodal sector
- New shipping group Premier Alliance launches after receiving approval from FMC
Trump Admin Temporarily Restores De Minimis Exemption for China Imports
The de minimis exemption, which allows for duty-free import of goods valued under $800, has been reinstated for products from China. This follows a brief period last week where US President Donald Trump’s administration eliminated the exemption as part of a new tariff imposed on imports from China.
The United States Postal Service (USPS) temporarily suspended delivery of parcels originating from China and Hong Kong last week after it became clear that Trump’s 10% additional tariff on all goods from China effectively nullified the de minimis exemption. However, the USPS quickly resumed deliveries and said it was working on a system to collect any required import duties. Then, last Friday, the Trump administration amended its tariff policy, making de minimis treatment “available for otherwise eligible” Chinese imports.
However, the de minimis exemption will be discontinued once the Secretary of Commerce informs the administration that systems are in place to effectively process and collect tariff revenue. The current acting secretary is Jeremy Pelter, but responsibility for developing the collection systems will likely fall on Howard Lutnick, Trump’s nominee for the job. Supply chain experts interviewed over the weekend said they expect these systems to be jointly developed by US Customs and Border Protection (CBP), USPS, and other affected government agencies.
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Trump Signs Orders Placing 25% Tariffs on All Steel, Aluminum Imports Into the US
President Trump signed executive orders on Monday imposing 25% tariffs on all steel and aluminum imports into the US, effective March 12. The orders bring steel import duties back to the level set by Trump during his first term. The orders also include an increase in the existing 10% aluminum tariffs that Trump enacted in 2018.
Explaining the new policy to reporters Monday, the President said, “It’s 25% without exceptions or exemptions, and that’s all countries, no matter where it comes from.”
The US imported more than 26 million metric tons of steel products and five million metric tons of aluminum last year, according to data from the US Census Bureau. The last few presidential administrations have favored tariffs on both metals, with former President Joe Biden largely maintaining import duties set during Trump’s first term or setting his own in a bid to boost domestic production.
“We look forward to working closely with the President and his administration to implement a robust and reinvigorated trade agenda to address the many foreign market-distorting policies and practices that create an unlevel playing field for American steelmakers,” Kevin Dempsey, president and CEO of the American Iron and Steel Institute, said in an email earlier this week, according to Supply Chain Dive.
US Retailers Remain Optimistic About Import Volumes Amid Tariff Uncertainty
Despite the new tariff on imports from China and the looming possibility of 25% import duties on goods from Canada and Mexico, an analysis by the Journal of Commerce (JoC) shows US retailers still expect strong import volumes for the coming months.
In an article published Friday, JoC Associate Editor Laura Robb looked at the latest Global Port Tracker (GPT), a monthly report from Hackett Associates and the National Retail Federation (NRF). Robb’s analysis shows the GPT now predicts a slight 0.2% year-over-year increase in imports for February, a significant upgrade from a previously forecasted 4.5% decline. March imports are expected to surge by 11.1%, up from the prior projection of 10.6%. The GPT compiles import data from 13 ports across US East, West, and Gulf coasts.
“Retailers have implemented mitigation strategies to minimize the potential impact of tariffs, including frontloading some products,” Jonathan Gold, vice president for supply chain and customs policy at the NRF, said in the latest GPT. He noted, however, that frontloading can lead to increased warehousing and related costs, making the practice a temporary solution.
Analyst: Tariffs Would Have Only “Minor Impact” on North American Intermodal
If the Trump administration’s planned tariffs on goods imported from Canada and Mexico go into place next month, there would only be a “minor impact” on the North American intermodal sector. That’s according to an editorial published Friday by Larry Gross, president and founder of Gross Transportation Consulting and a JoC analyst.
On February 1, President Trump issued executive orders mandating 25% tariffs on Canada and Mexico but later delayed their implementation for 30 days. Writing in the JoC, Gross said cross-border intermodal freight between the US, Canada, and Mexico only represents a small fraction of all North American intermodal activity, limiting the overall impact of tariffs. According to Gross, only 5.7% of intermodal revenue moves crossed either border in 2024. Of the 747,000 Canada-US intermodal moves in 2024 (4.1% of the North American total), 90% involved ISO containers originating from overseas, primarily arriving at Canadian ports.
While these shipments could be subject to tariffs related to their country of origin, they would likely be exempt from potential tariffs specifically targeting Canada. Gross went on to say that less than 1.7% of North American intermodal activity would be directly affected by tariffs. According to his analysis, this translates to 3.9% of intra-North American domestic intermodal equipment movements.
Premier Alliance Launches After Receiving Approval From FMC
The new container shipping partnership Premier Alliance has received final regulatory approval from the US Federal Maritime Commission (FMC). The alliance of Ocean Network Express (ONE), HMM, and Yang Ming officially took effect on Sunday, around six months after its initial announcement.
Premier Alliance succeeds the disbanded THE Alliance, which dissolved after Hapag-Lloyd departed to join Maersk in the new Gemini Cooperation. The FMC, responsible for ensuring shipping agreements comply with US law, initiated a standard 45-day review period in December to assess the economic impact of the Premier Alliance. This review included a 15-day public comment period, during which the FMC received input from two unnamed industry trade associations.
The Gemini Cooperation, which covers major trade routes from Asia, also recently passed FMC review and launched on February 1. The Ocean Alliance, consisting of Cosco Shipping, CMA CGM, OOCL, and Evergreen, holds the largest market share on three of the four primary trade lanes from Asia: Asia-US West Coast, Asia-US East Coast, and Asia-North Europe.
