UKFT outlines below the details of new United States tariff increases on imports from China, Hong Kong, Canada, and Mexico, to advise UK fashion and textile businesses.

China Tariffs

From 4 March 2025, the United States has increased the tariff on all goods from China and Hong Kong to 20% (up from the 10% originally imposed in February).

• The elimination of the De Minimis Exemption remains in place so all goods, irrespective of value face the 20% tariff.
• The additional 20% tariff is on top of the US standard duty rates. For example, goods made in China that would normally attract duty of 17.5% will now be taxed at 17.5% plus 20% = 37.5%.
• The changes apply with immediate effect to all goods which have not already cleared US customs.
  
  

Canada and Mexico Tariffs – Applicable from 4 March 2025

• 25% Tariff on Goods: A 25% tariff will be applied to goods made in Canada and Mexico.
• Elimination of De Minimis Exemption: The current de minimis threshold, which allows duty-free imports below $800, will be removed for goods from Canada and Mexico.

We are working closely with our colleagues in the USA on this issue and will provide regular updates to members.

UKFT will provide further details as things develop. For member queries, please contact info@ukft.org

Considering setting up a business or logistics in the US?

Companies considering setting up a business or logistics in the United States may want to contact UKFT about this so that we can make introductions to help.

There is currently no legal requirement for companies importing goods into the US to have a US legal entity, although this could change that short notice, and companies need to be aware of the risks of creating nexus to pay US federal and/or state tax on their global revenue if they meet the threshold of having physical hardware or logistics on US soil.

It is likely that the new presidency is going to look very carefully at the activities of non-US companies operating on US soil (logistics, travelling tailors etc) and what the tax implications on those companies should be.

UKFT has a number of qualified contacts in this space. Contact paul.alger@ukft.org if you would like to discuss this.