August 2025 Shipping and Trade Update: Key Changes and Action Steps
August 2025 Shipping and Trade Update
If you’re managing international logistics or global supply chains, this August 2025 shipping and trade update brings critical changes you need to know. From Trans Pacific rate shifts to new CBP and USPS compliance rules, this month’s developments impact importers, exporters, and e-commerce sellers across industries.
Trans Pacific Update: The Calm After the Storm
Two weeks ago we talked about how the supply chain finally caught its breath after the August 1 tariff deadline passed. Since then the good news has only continued. Ocean rates are sliding further and the latest numbers show Asia to U.S. West Coast prices sitting comfortably in that sweet spot importers have been waiting for.
On top of that, tariff policy has stabilized for the moment. Importers are no longer stuck in guessing games or scrambling to beat last minute deadlines. Instead, they are getting back to what really matters, planning shipments with confidence and focusing on inventory, seasonal needs, and customer demand.
Container rates from Asia remain on a downward trend while vessel space is flowing smoothly. The bottlenecks that used to define peak season frontloading are noticeably absent. Carriers are keeping schedules tight and service reliability has climbed to some of the strongest levels we have seen in years.
The whole industry feels different right now. Importers are making decisions based on their business needs rather than reacting to tariff swings. Carriers are responding with steady service, consistent schedules, and rates that reflect a healthier and more balanced market. Even with the early rush this summer, the freight environment is settling into a rhythm that works for both shippers and carriers.
For importers, this all adds up to an ideal environment. Rates are low and steady, vessel space is open, and the tariff driven turbulence has eased. Businesses can plan shipments based on what they need, rather than reacting to constant outside pressures. If you have been waiting to book fall shipments or holiday inventory, now is the time to move. Use our quick quote form today and we will provide a booking estimate tailored to your needs.
UFLPA Update Expands Forced Labor Scrutiny: Five New Sectors Added
The U.S. Department of Homeland Security released its 2025 update to the Uyghur Forced Labor Prevention Act (UFLPA) Strategy this week, reinforcing the United States’ commitment to keeping goods made with forced labor out of the supply chain. This annual report outlines major enforcement progress and announces new high-priority sectors targeted for oversight. For businesses importing from China, this update signals the need to reevaluate supply chain risk, particularly in the energy, metals, agriculture, or industrial goods sectors.
The UFLPA Entity List has now expanded to 144 entities. These companies are presumed to be linked to forced labor, and their goods are prohibited from entering U.S. ports unless the importer can prove otherwise with clear and convincing evidence. Since enforcement began in mid-2022, U.S. Customs and Border Protection has reviewed more than 16,000 shipments valued at nearly $3.7 billion. The law also applies to goods produced with components or raw materials tied to restricted entities, not just finished products. Even indirect sourcing through intermediaries can result in detention if any part of the supply chain traces back to Xinjiang.
This year’s update adds five new sectors to the list of enforcement priorities: caustic soda, copper, jujubes (red dates), lithium, and steel. These join existing high-risk sectors like cotton, tomatoes, apparel, seafood, aluminum, polyvinyl chloride, and silica-based products. The addition of materials like lithium and copper also reflects growing scrutiny of global green energy and EV-related supply chains. These sectors were identified based on credible reports of state-sponsored labor transfers, high regional production, and known involvement in forced labor schemes.
The DHS report also highlights broader government collaboration and ongoing outreach to importers, trade associations, and advocacy groups. Educational webinars, sector-specific advisories, and practical compliance tools are being offered to help the trade community keep pace with enforcement. However, the message is clear: awareness is not enough. Importers are expected to act. This includes reviewing supplier declarations, mapping multi-tier supply chains, and preparing documentation before shipments are flagged.
If your company operates in any of the twelve high-priority sectors or sources materials from China, this is the time to strengthen internal compliance programs. Risk exposure is no longer limited to direct suppliers. Federal enforcement will continue, and shipments lacking full transparency may be held, delayed, or denied entry. A proactive review today could prevent costly interruptions tomorrow. Click here to read more.
What to Do Now That De Minimis Duty-Free Treatment Is Ending August 29
Starting August 29, all commercial shipments entering the U.S. through international mail will be subject to duty, regardless of value or origin. The longstanding de minimis rule that allowed imports valued under $800 to enter duty-free is officially suspended. This update impacts more than just major carriers. If you work with USPS, postal consolidators, or cross-border eCommerce fulfillment centers, this change is going to affect your process in a big way.
Carriers and qualified parties must now choose how duties will be calculated on these low-value shipments. The first option is based on the IEEPA tariff rate assigned to the country of origin, applying that percentage directly to the item’s value.
The second option is a flat-rate structure. Duties are set at $80 per item if the IEEPA rate is under 16%, $160 if the rate is between 16% and 25%, and $200 if the rate is above 25%. If a package contains goods from multiple countries, only the highest applicable rate is applied. This flat-rate option is temporary and will expire on February 28, 2026, at which point the percentage-based method will become mandatory.
All parties will be required to submit detailed information to CBP monthly using a new worksheet through Pay.gov. This includes the number of shipments, tracking numbers, country of origin for each item, duty collection method selected for the month, and either the declared values or flat rates owed. Payments for each month’s shipments must be submitted by the 7th business day of the following month. Interest will apply to late payments, and failure to comply could result in enforcement actions or loss of release privileges.
Another critical requirement is bonding. Carriers must have an international carrier bond on file. Qualified parties must register with CBP and secure a basic importation bond with a minimum value of $50,000 or 10% of duties owed or projected over a 12-month period. If you already have a bond in place, it may need to be adjusted based on your new duty liability. CBP is only allowing changes to duty collection methodology once per month, and any change must be communicated at least 24 hours in advance. If you ship through the international postal network, this is the time to double check that your systems, documentation, and financials are ready. Read the complete guidance here
USPS now requires HS codes on international mail, starting September 1
Beginning September 1, the USPS will require senders of international mail that contains goods of a commercial nature to include, at minimum, a six-digit WCO Harmonized System code for each item on the customs declaration. USPS also added country of origin to the list of conditional data elements, which may be required depending on the contents and other nonpostal rules. These changes implement revisions to the Universal Postal Convention and will be incorporated into the online International Mail Manual in the September 8 edition.
For shippers and e-commerce sellers, the takeaway is simple. Your systems and labels must capture an accurate six digit HS code at the item level and be ready to provide country of origin when required. USPS confirms that the first six digits align with the global HS structure, while the last four digits in U.S. classifications are country specific, so many mailers may already have the needed data in their HTSUS or Schedule B mappings. Updating product catalogs and shipping tools now should reduce delays and exceptions as the new requirement takes effect. Full details are available in the updated USPS International Mail Manual.
US Bank Completes First eBL Trade Transaction, A Big Step for U.S. Exporters
US Bank has successfully completed its first trade finance transaction using a fully digital electronic bill of lading (eBL). The deal, facilitated by WaveBL and supported by MSC, marked a significant milestone for U.S. exporters as the entire process, including issuance, transfer, and surrender, was handled digitally with no fallback to paper. What used to take several days with physical documents was condensed into just minutes, offering enhanced speed, security, and compliance.
This trial highlights growing momentum toward the Digital Container Shipping Association’s goal of digitizing 50 percent of all bills of lading by 2030. While adoption still faces hurdles such as legal recognition, cybersecurity concerns, and system integration, this development signals increasing readiness in the U.S. banking sector. For exporters and importers, digital BoLs promise reduced risk, faster payment cycles, and fewer document delays across the global supply chain.
New Section 232 Derivatives Tariff Now in Effect
As of 12:01 a.m. Eastern on August 18, 2025, a new 50% tariff officially took effect for select steel and aluminum derivative products under Section 232. These include items such as wire, nails, bumpers, and other manufactured articles that contain significant steel or aluminum content. The rule is part of the broader national security framework for critical metals and applies to certain HTS codes designated in the official order. What is important to understand is that the tariff is not based on the full invoice value, it is calculated only on the metal portion of the product.
This distinction is critical. The 50% duty must be applied only to the value of the qualifying steel or aluminum content, not to packaging, plastic components, or other materials included in the shipment. Applying the duty to the full invoice could result in overpayment, misclassification, and exposure to unnecessary compliance risk. With the rule just going into effect, we are already seeing confusion among importers and brokers about how to handle the split between metal and non-metal value.
CBP has made it clear that importers are responsible for ensuring proper valuation and documentation. That means being able to support your calculation of the metal content and applying the 50% rate only where required. This is not something to leave to chance. Having clear backup and line-item breakdowns is essential if you are audited. Even if you are relying on your broker, the importer of record ultimately carries the liability. Now is the time to take a close look at how your entries are filed and make sure you are not leaving money on the table or risking penalties.
To help importers navigate the new changes, we created a quick-reference guide outlining key compliance reminders related to the Section 232 Derivatives Tariff. The guide highlights the most important points importers should know when reviewing entries for affected steel and aluminum products. While it does not cover every possible scenario, it serves as a practical starting point to help you understand the core requirements and avoid common errors, especially when it comes to applying the 50% duty only to the qualifying metal content.
If your company imports derivative steel or aluminum products, this is a critical update that deserves immediate attention. We recommend booking a 15-minute strategy call to review your HTS codes and tariff entries together. We will walk you through the guide, answer your questions, and help you avoid unnecessary costs. Click Here to book a free strategy call and get access to our Guide.
Congress Just Gained Eyes on Export Licenses. Here’s What It Means for You
On August 19, a new law was signed that gives Congress visibility into export license applications involving sensitive or dual-use goods. If you’re exporting to high-risk countries or entities on the BIS restricted lists, your license details could now be part of an annual report to Congress. It won’t include company secrets, but Congress will see who applied, where the items were going, and whether the licenses were approved or denied. It’s part of a growing push to make export enforcement more transparent.
This doesn’t mean new restrictions, but it does mean exporters need to tighten up. If you’re shipping anything that could fall under the Export Administration Regulations, especially to arms-embargoed countries, make sure your classifications are accurate, your records are in order, and you’re screening every end user. Compliance isn’t just about avoiding penalties anymore. It’s about being ready when the spotlight turns your way.
If your business depends on international trade, now is the time to take proactive steps. Whether you need help navigating new tariffs, updating documentation for compliance, or planning your next shipment while rates are favorable, Southern Star Navigation is here to support you. Reach out to our team for a quick booking quote, a compliance review, or a custom logistics solution that fits your needs. We help importers and exporters stay ahead of shifting regulations and market conditions with clarity, strategy, and results.