Find the key takeaways from ourUS Trade & Tariffs Webinar, in partnership with EY, and we’ll continue to update this page with any changes to the tariff policies.

Key takeaways from the webinar:

• The new US administration has initiated its first set of tariff actions including 10% tariffs on all imports from China.
• Tariffs are charged on goods based on their Country of Origin. 
• There’s a 30 day hold on tariffs on goods imported from Canada and Mexico.
• The China tariff  came into effect at 4 p.m. US time (12:01a.m. AEDT, February 4th). It also impacts goods that were already in transit or on the water since 12:01a.m. on February 1st, US time.
• The removal of the de minimis threshold means that many e-commerce sales from China to US consumers, previously exempt from tariffs due to their value being under US$800, will now be subject to tariffs.

QUESTIONS FROM THE WEBINAR

Does the tariff on China imports include products from Australia but made in China? eg. Garments from Australian fashion brands, made in China or items that are handmade or handwoven?
Yes, generally speaking, the tariff applies to goods based on its Country of Origin, regardless of where the goods are shipped from. Country of Origin is usually dictated by the country where the most substantial transformation has occurred.

Simple ways of assembling a t-shirt in a third country as a final stage of the production process won't necessarily change the country of origin. 

If they're made in Australia or usually to get Australian origin, they'll usually need to be using yarn and fibre from Australia to be classified. It depends on the product. For leather goods, it may be different. It is important to be informed on the product specific requirements as these may differ depending on how your product is classified. 

Will this also apply to ecommerce items sold as digital products?
The tariff applies specifically to physical goods, not digital products. So, if you're selling and shipping physical items through an e-commerce platform, that’s fully covered. But if it’s a digital product being sold and delivered electronically, that may not fall under the same coverage.

Please can you advise if tariffs are still exempt for handmade items or items considered crochet and hand woven or have elements of these that make up more than 50%?
If these items, even if handmade or with woven elements, are substantially manufactured in China, they would still be subject to the applicable tariffs.

As stated in the recent executive order circulated over the weekend, the tariffs apply to all articles of Chinese origin. Therefore, regardless of whether the product is handmade or contains woven elements, if the majority of its production occurred in China, it would likely be subject to the tariffs. However, for precise guidance, it’s essential to refer to the specific rules of origin for that product. These rules will provide clearer insight into how the product’s composition and origin are determined under tariff regulations.

When does the China tariff come into place?
Yes, the China tariff comes into effect at 4 p.m. US time (12:01 a.m.AEDT, February 4th). It also impacts goods that were already in transit or on the water since 12:01 a.m. on February 1st, US time. As for any potential changes or engagement from the Chinese government, there’s no formal agreement yet. China has indicated they may initiate a WTO dispute settlement process, but such cases typically take years to resolve, so there is no immediate resolution expected.

Is it still possible to use the first sale price for the completed goods?
Yes, that's correct.

Has there been any talk of tariffs on goods produced in India?
There has been some discussion on tariffs on goods produced in India. The US currently has a trade deficit with India, which means the US imports more from India than it exports. The US does not have a free trade agreement (FTA) with India, therefore, there are already tariffs in place on goods traded between the two countries.

However, given the imbalance in the trade relationship, there is potential for tariff action under the terms of the US memorandum, which could be used to address this imbalance. While there’s no immediate confirmation of new tariffs specifically targeting Indian goods, the situation remains under review, and tariff actions could be taken if deemed necessary by the US Administration.

USEFUL RESOURCES: 

• Use the US International Trade Commission for the latest tariff updates: The Harmonized Tariff Schedule of the United States (HTS)
• President Trump’s America First Trade Policy memorandum, which outlines a range of reviews that have been initiated and are mostly due to report back to him by 1 April 2025.