How to Calculate China Tariffs in 2025 – and What They Really Mean for Your Costs

Update – October 2025:
Tariff enforcement and court rulings continue to evolve. As of this update, the 10 % reciprocal and 20 % “fentanyl” tariffs are still being collected in most cases, but both remain under court review and could change pending appeal.

Tariff headlines move fast, but what ultimately matters is the duty rate you’ll actually pay when your goods clear customs. In this short video clip from our recent webinar, Adam Lewis, President of Clearit Customs Brokerage, explains how to layer today’s tariffs to get a real-world number.

Here’s the clip:

Here’s how to calculate your total tariff costs:

Step 1: Start with your column one duty

Every calculation begins with the standard duty rate in the U.S. tariff book.

🚢 Example:
A shipment of clothing may carry an 18% baseline duty.

Step 2: Add Section 301 duties

Section 301 tariffs, first introduced during the Trump administration, still apply to a wide range of Chinese imports. Rates vary from 7.5% to 25%, depending on classification.

🚢 Example:
18% + 7.5% = 25.5% cumulative duty.

Step 3: Factor in the 2025 tariffs

This year’s measures add another 30%, made up of:

• 10% reciprocal tariff
• 20% “fentanyl” tariff

🚢 Example:
25.5% + 30% = 55.5% duty rate.

Note: These additional tariffs are currently being collected in most cases, but both the 10 % reciprocal and 20 % “fentanyl” tariffs are under court review and could change pending appeal.

Step 4: Apply it to your shipment value

On a $10,000 shipment of apparel: $10,000 × 55.5% = $5,550 in duties.

That’s before you even touch freight costs, insurance, or last-mile delivery.

Why this matters now

For small shippers moving freight monthly or close to it, tariffs of this scale can:

• Shift modal decisions (e.g. is air worth it for higher-margin SKUs?)
• Force margin recalculations at the SKU level
• Drive sourcing conversations – whether diversifying suppliers or renegotiating with existing partners
  

Want to learn more?

For a full overview of today’s customs environment – including global tariff changes, enforcement trends, and strategies to protect your margins – check out our SMB Customs Guide for 2025.

Tariff FAQs for SMB Importers

How do I figure out which tariff rate applies to my product?

Adam Lewis highlights three factors to look into: classification, valuation, and origin.

• Classification (HS code): The tariff rate you pay depends on how your product is classified in the tariff book. Small differences in product descriptions or materials can change the HS code and, with it, the rate.
• Valuation: Customs requires the declared value on your commercial invoice to be accurate. Undervaluation, double invoicing, or vague descriptions can trigger penalties.
• Origin: Rules of origin are strict. If you source components from multiple countries, you need to prove where substantial transformation occurred. Misdeclaring origin can expose you to an extra 40% tariff plus penalties if customs decides it was fraudulent.
  

This is why Adam stressed: don’t just take your supplier’s word for it. Come to your customs broker with detailed product information and supply chain transparency to ensure your classification and origin stand up under scrutiny.

Are Section 301 duties on China still in effect?

Yes. Section 301 duties, introduced during the Trump administration, still apply to a wide range of Chinese imports. The rates vary between 7.5% and 25%, depending on the product category.

That means your “China math” today is: baseline duty (Column One) + Section 301 + ~30% (10% reciprocal + 20% fentanyl tariff).

What’s my actual duty rate on goods from China?

Here’s an example Adam shared:

• Column One (baseline duty): Clothing at 18%
• Section 301 duty: +7.5%
• Reciprocal tariff: +10%
• Fentanyl tariff: +20%
  

That adds up to 55.5% total duty.

On a $10,000 apparel shipment, that’s $5,550 owed in tariffs before freight, insurance, or delivery costs.

If tariffs change mid-shipment, which date matters?

Adam noted that tariff changes for Canada and Mexico are effectively immediate at the border. For example:

• Mexico: Non-USMCA goods face 25% (90-day extension in place).
• Canada: Non-USMCA goods went from 25% → 35%; steel, aluminum, and copper at 50%; vehicles ~25%.

So while shipment timing can influence exposure, in practice, duty is assessed when the goods clear customs. Small shippers should work closely with brokers to avoid surprises.

What enforcement risks should I watch?

• Transshipment scrutiny: Routing Chinese goods through Vietnam (or elsewhere) without real transformation can trigger full China duties + 40% penalty tariff and even criminal liability.
• Border enforcement: CBP is holding more shipments for inspection and review before release. Adam described this as the “new normal,” with longer clearance times and more audits.

Small shippers who rely on fast turns should build in extra lead time for border checks.

What’s the current status outside China?

The August 7 measures extended tariffs globally:

• Broad reciprocal tariffs hit ~60+ countries.
• Some secured trade deals: EU, Japan, South Korea ~15%, Vietnam ~20% (down from ~46%), Indonesia ~20%.
• Brazil and India saw steep hikes (~50% in some cases).

For North America:

• Mexico: 25% tariff on non-USMCA goods, with an extension.
• Canada: 35% on non-USMCA goods, plus sector-specific rates.

Should I front-load shipments or wait?

Adam’s answer: it depends on your risk tolerance and cash flow.

Front-loading makes sense if:

• Duty increases are scheduled or likely
• You have stable demand and capacity to hold inventory
• Your goods are highly disruption-sensitive
  

But for China specifically, Adam noted the situation is calmer now (with the 30% “cap” and a 90-day extension), so front-loading isn’t automatically the best move.

How can SMBs reduce customs cost impact beyond shifting suppliers?

Adam listed several practical strategies:

• Renegotiate supplier pricing – overseas vendors are more flexible than ever.
• Consolidate shipments – fewer, larger shipments lower per-unit shipping costs.
• Plan your mode – ocean instead of air when timelines allow.
• Optimize Incoterms – FOB vs. DDP can shift responsibility and cost control.
• Improve demand forecasting – avoid emergency air freight.
• Duty drawback – reclaim duties on goods you later export (billions go unclaimed).
• Use Free Trade Zones or Bonded Warehouses:
  • FTZ: lock in today’s duty rate, pay when goods leave the zone.
  • Bonded warehouse: duties, pay at the rate in effect when goods leave storage.

Is DDP a safe way to control costs?

Delivered Duty Paid (DDP) pricing can simplify landed cost planning, but Adam warned of serious risks:

• Some overseas sellers under-declare values or split invoices.
• If fraud is detected, liability can shift back to the U.S. consignee, even if the foreign vendor “took responsibility.”
  

If it looks too good to be true, it probably is. Always verify how duties are being calculated and declared.

What happens when de minimis goes away?

With de minimis disappearing, expect:

• More formal and informal entries at customs
• Higher likelihood of delays and inspection
• A need to consolidate imports into bulk shipments and shift to U.S. fulfillment to keep costs down
  

Adam’s perspective: de minimis only really shaped trade since 2016, so think of this as a return to pre-2016 logistics math rather than an unprecedented shock.