What Exporters Must Know About the US-China Tariff Pause

European exporters selling into the US on DDP (Delivered Duty Paid) terms are being urged to look beyond the headlines surrounding the recent China-US tariff “pause,” as many underlying duties remain firmly in place and could trigger unexpected costs.

The 90-day tariff relief announced by the US administration last week promised a sharp reduction in duties on Chinese goods, dropping from a headline rate of 145% to just 10%, with additional 20% tariffs related to fentanyl trafficking. However, while this temporary shift may offer superficial savings for some, the majority of products shipped into the US remain subject to a tangle of older tariffs that continue to inflate landed costs above this 30% base level.

This is especially significant for UK and EU businesses supplying the US under DDP terms, where the exporter assumes responsibility for all duties, taxes, and customs clearance. The assumption that the tariff rollback applies universally is dangerously misleading and is leaving some sellers potentially liable for duties of up to 50% on goods they believed would enter at reduced rates.

Among the enduring tariffs are Section 301 duties, originally introduced during the Trump administration’s first term, as well as Section 232 tariffs and a host of sector-specific duties on steel, aluminium, automotive parts, and industrial components. These apply not just to goods from China, but also to any products incorporating Chinese-origin components—an issue that could affect many European-manufactured goods.

Despite official announcements lifting the latest round of duties imposed in April, there has been no change to these longstanding measures. That has led to widespread confusion, especially among exporters and importers relying on second-hand interpretations of policy rather than direct guidance from US authorities.

Compounding the challenge is a surge in shipping demand. Bookings from China to the US spiked by almost 300% on some routes in the week following the tariff announcement, driven by the assumption that reduced duties would lead to lower costs. But for those on the hook for compliance, particularly under DDP terms, the situation is far more nuanced.

With US Customs and Border Protection offering minimal lead time on updates, and policy changes often issued via presidential executive orders or even social media, exporters outside the US face significant challenges in staying up to date. This creates risk not only for cashflow and margin but also for regulatory compliance.

For UK and EU businesses trading into the US, this is a critical time to reassess duty calculations, ensure correct tariff classifications, and verify country-of-origin declarations. Unintended missteps in documentation or classification could expose exporters to fines, shipment delays, or profit erosion.

Noatum Logistics helps UK and EU exporters, as well as US importers, navigate the hidden risks behind headline tariff changes.

Our US customs brokerage and compliance teams work directly with you to:

• Verify country-of-origin and supply chain transparency
• Apply correct valuation and duty methodologies
• Review and update tariff classifications and documentation
• Build audit-ready compliance frameworks and proactive reporting systems

In today’s unpredictable regulatory climate, customs compliance isn’t just a legal obligation, it’s a critical necessity.

Contact Noatum Logistics today to review your current position and protect your business from costly surprises.