China’s Tariff Break Confusion

UK and EU exporters selling on duty-paid Incoterms to the US may need to tread carefully, as the much-publicised 90-day tariff break between China and the US masks a host of complexities that still affect landed costs for American buyers.

While headlines trumpeted a sharp cut in tariffs on Chinese goods—from 145% to 10%, plus a 20% fentanyl duty—the reality for US importers, and their European suppliers operating on DDP terms, is far from straightforward.

With multiple older tariff regimes still in force, buyers remain exposed to significant duties—some exceeding 50%—despite the temporary relief.

The Trump administration confirmed last week that it had lifted the tariffs imposed in early April, but many longstanding rates remain in place, including Section 301 and 232 tariffs, sector-specific levies on steel and aluminium, and others related to national security and anti-dumping measures. These charges continue to apply to thousands of products, including industrial machinery, fasteners, and vehicle components, many of which are exported from Europe to the US.

For UK and EU sellers offering DDP terms, these residual tariffs pose a serious risk to compliance, margin and competitiveness. The cost to land goods in the US hasn’t dropped as dramatically as the headlines suggest and in some cases, it hasn’t dropped at all.

The surge in bookings that followed the rollback announcement—up 277% in a single week—demonstrates strong demand and suggests many importers are banking on lower costs. But with duties still applicable on a wide range of Chinese-origin components and raw materials, European exporters could be left absorbing unexpected charges, especially where detailed customs classification hasn’t been fully reviewed.

Shippers must also contend with inconsistent communications and last-minute policy changes. US Customs and Border Protection has offered limited advance guidance, and multiple presidential executive orders have created a shifting landscape that is difficult to navigate, especially for exporters outside the US relying on third-party customs clearance.

For European firms exporting under DDP terms, now is the time to double-check landed cost calculations, ensure accurate HS classification, and consult closely with US-based partners. The temporary tariff window may offer some benefit, but only for those who understand exactly which duties have been suspended, and which haven’t.

Logicall help UK and EU exporters, as well as US importers, navigate the hidden risks behind headline tariff changes. Our US customs brokerage and compliance experts work with you to verify country-of-origin claims, apply correct duty and valuation methods, and ensure your documentation stands up to scrutiny.

In a trade environment where regulations shift fast and penalties hit hard, customs compliance isn’t just a box to tick—it’s a strategic advantage.

Get in touch today to review your current position and see how Logicall can help you stay compliant, reduce risk, and protect your cashflow.