U.S. Tariff Policies
New U.S. Tariff Policies: What Travel Goods Brands Need to Know
UPDATED ON 24TH JUNE 2025
Important Note on Tariff Deadlines
The 90-day pause on country-specific tariffs announced by the White House applies to all countries except China. This means tariffs could take effect for others as early as July 9, 2025, under the national emergency declaration.
Steel Tariffs Expanded to Appliances - Effective June 23
On June 16, the U.S. Commerce Department announced it will expand existing steel tariffs to cover additional “derivative” products such as:
While not directly targeting travel goods, this expansion signals broader enforcement of Section 232 tariffs across consumer goods categories - a trend that could eventually encompass any imported product with steel components.
Implication for sourcing teams: If your goods contain steel parts (e.g., frames, telescoping handles, fixtures) or rely on suppliers tied to appliance-grade steel, your input costs may rise without notice.
Higher Steel and Aluminum Tariffs Now in Effect
As of June 4, tariffs on imported steel, aluminum, and derivative products were officially increased to 50%.
Tariffs on UK steel and aluminum remain at 25%, but this could change after July 9, depending on the U.S. - UK Economic Prosperity Deal.
Impact for manufacturers: This increase is already raising the cost of sourcing key materials like frames, hardware and fixtures. Any component made from steel or aluminum is likely to be affected in both price and availability.
Court Ruling Challenges Presidential Tariff Authority
On May 28, the U.S. Court of International Trade ruled that tariffs imposed under the Trump-era International Emergency Economic Powers Act (IEEPA) - targeting imports from Canada, Mexico and China for fentanyl and immigration concerns - exceeded the executive branch's legal authority. The ruling is under appeal, and a federal court stay means these tariffs remain in effect for now.
Temporary Tariff Reduction Agreement
In a May announcement, the U.S. and China agreed to a temporary reduction in tariffs to allow more time for negotiations. Key elements include:
- U.S. tariffs on Chinese products reduced to 30%, but these are stacked on top of existing tariffs such as the Section 301 and fentanyl-related tariffs - bringing total effective rates as high as 75% on some items.
- The new rates take effect for 90 days starting in early May 2025.
- Talks between both governments are expected to continue through summer, with locations rotating between the U.S., China, or neutral ground.
- The White House maintains that the 30% tariff will be the likely cap during this period, while analysts suggest that this “truce” has brought both sides back to the negotiating table with a clearer range of expectations.
- Stock markets responded positively, with analysts calling the reduced tariffs “manageable” for U.S. businesses.
- As of May 12, U.S. Customs and Border Protection (CBP) has not released specific implementation guidance, which may affect how importers plan around the new tariff timeline.
- While negotiations with countries like Vietnam, Cambodia India and Indonesia are ongoing, travel goods from these regions remain subject to an additional 10% 'reciprocal' tariff as of mid-May.
- Shipping Route Disruptions Due to Tariffs
Following the tariff escalation, major container shipping firms have begun reducing or suspending services between Asia and the U.S., citing collapsing trade volumes. This reduction in capacity may further raise shipping costs and delay deliveries.
The Supply Chain: What’s Changed?
China’s Role Is Shrinking, But Still Major
While China is still the largest supplier, its share of U.S. imports has dropped from 84.7% in 2016 to 47.1% in 2025. But, don’t celebrate too soon—other major suppliers like Vietnam (24.8%) and Cambodia (11.2%) are now facing steep tariffs, so the whole supply chain is at risk.
Concentration of Suppliers
The top five suppliers, China, Vietnam, Cambodia, India and Indonesia, make up nearly 90% of U.S. travel goods imports. That’s a huge concentration risk. If there’s a tariff shift or disruption in any of these countries, it could wreak havoc on your supply chain.
Shipping Costs: What to Expect
Shipping Fees from China
As of October 2025, if you're shipping from Chinese vessels, you’ll face a surcharge of $50 per ton of cargo. This surcharge will increase each year for the next three years, making Chinese shipping more expensive and less reliable.
Container and Chassis Tariffs
95% of global containers and 87% of chassis are made in China. With new tariffs ranging from 20% to 100%, this will affect the cost structure of nearly every shipment. It’s not just about getting your goods to the U.S.; it’s about how much it costs to do so.
How Are Brands Adapting?
Short-Term Strategies
- Hold shipments: Some brands are holding their shipments in China to see if tariffs change or are reversed.
- Use bonded warehouses: By storing goods in Canadian warehouses, companies can delay paying tariffs until they enter the U.S.
- Ship early: If you're racing against the clock, consider speeding up shipments to get goods into the U.S. before the July 9 deadline.
- Shift final assembly: Moving assembly operations to other countries like Vietnam or Cambodia can help avoid the highest tariffs.
- Lobby for trade exclusions: Companies are actively working with governments to negotiate tariff exemptions.
Long-Term Strategies
- Diversify suppliers: Look beyond China and Southeast Asia. South and Central America could provide more stable tariff environments.
- Reshore manufacturing: Some companies are investigating restoring certain product lines to reduce tariff exposure.
- Revamp pricing models: Be transparent with your customers about tariff-related price hikes. They’ll understand if you communicate early and clearly.
- Invest in compliance: Staying updated on the Harmonized Tariff Schedule and other trade regulations is crucial for staying ahead of any changes.
- Advocacy and Legislative Efforts Industry-wide efforts: Companies are sending letters to President Trump, asking for exclusions or reductions in tariffs, especially for goods under HTS Chapter 42.
- Lobbying: Trade associations are pushing for stronger legislative oversight of U.S. trade policies.
- Media campaigns: Industry leaders are speaking out across major news outlets to raise awareness of the economic impact on small businesses.
Step-by-Step Guide for U.S Travel Goods Brands
- Audit your supply chain: Map out all the countries you source from and identify their tariff exposure.
- Act fast: Get your shipments cleared before the July 9 deadline to avoid additional tariffs.
- Shift operations: Look into moving labor-intensive parts of your manufacturing to other countries to change the origin status.
- Reroute shipping: Explore non-Chinese shipping options and consider domestic ports if feasible.
- Adjust pricing: Build tariff flexibility into your pricing model and communicate price increases early.
- Explore new markets: Look at exporting to Europe or Canada to reduce U.S. dependency.
- Consider reshoring: For critical product lines, explore U.S.-based production.
The 2025 tariff escalation is a game-changer. It’s driven by a combination of national security priorities, trade imbalances, and the desire to reduce dependence on foreign manufacturing.
For travel goods brands, this means higher costs, supply chain uncertainty and new challenges. But it also presents an opportunity to adapt, diversify, and become more resilient. By staying informed you can navigate these changes and continue to thrive, no matter how the trade winds blow.
Accurate as of 21st May, we will be making running updates as the story develops.
Data and tariff details referenced from CNN, Understanding the 2025 Tariff Developments, May 1, 2025; South China Morning Post; Deutsche Bank; Travel Goods Association; USTR notices.