August Trade Intel: Tariff Updates, Airfreight Trends, and Freight Market Signals
Trans-Pacific Outlook: Tariffs No Longer in the Driver’s Seat
With the August 1 deadline now in the rearview mirror and the 10% blanket tariff period officially over, importers finally have something they’ve been craving: a shift in mindset. The import community has stopped trying to beat those constantly changing tariff deadlines and started focusing on what they can actually control: getting freight on the shelf when needed. As one industry expert told us, importers have decided “it is what it is,” and this practical approach is opening doors for smarter shipping decisions without all the chaos of tariff panic buying.
Even better, ocean freight rates from Asia to the U.S. West Coast are at their most attractive levels in years. Spot rates are sitting just over $2,000 per FEU, which is a massive 70% drop compared to last summer according to the Shanghai Containerized Freight Index. With ocean carriers keeping capacity steady and rates this low, businesses looking to restock or launch new products this fall are in a sweet spot they haven’t seen in a long time.
The freight market is working in your favor right now. Most of the peak season frontloading already happened, which means there’s space available and schedules are running on time. Many importers have found their groove using regular ocean service for planned shipments and expedited ocean service with guaranteed container availability when deadlines get tight. The best part? They’re doing it all without breaking the bank in this low rate environment.
Bottom line: the supply chain stress has lifted. Rates are down dramatically, space is available, and the industry isn’t being jerked around by weekly tariff policy changes anymore. This is your window to lock in fall and holiday shipping plans while conditions are this favorable. The stars have aligned for cost effective, reliable freight movement, and we’re here to help you make the most of it.
Reciprocal Tariffs Are Now in Effect. Here’s What You Should Know
The finalized reciprocal tariff rates under Executive Order 14257 officially took effect on August 7, 2025. If you import from Brazil, Canada, China, or the European Union, these new country-specific duties could impact your landed costs and filing procedures. China (including Hong Kong and Macau) is subject to a 10% duty filed under HTSUS 9903.01.25. Brazil now faces a 40% duty, and Canada has increased from 25% to 35%, with flagged shipments potentially receiving the higher 40% rate. For the EU, if the Column 1 general duty rate is below 15%, a supplemental tariff applies to bring the total rate up to 15% (file under 9903.02.20); if it is 15% or higher, no additional duty applies (file under 9903.02.19).
CBP’s updated guidance confirms that in-transit shipments, specifically, articles the product of any country that were loaded onto a vessel at the port of loading and in transit on the final mode of transport prior to entry into the United States before 12:01 a.m. EDT on August 7, 2025, and entered for consumption or withdrawn from warehouse on or after August 7 and before October 5, 2025, are subject to the 10% base reciprocal rate and should be filed under HTSUS 9903.01.25.
Exemptions still apply to qualifying entries from Canada and Mexico, which must be filed under HTSUS 9903.01.26 and 9903.01.27 respectively. Goods already subject to Section 232 tariffs, such as steel, aluminum, and copper, are excluded from this program and must be filed under HTSUS 9903.01.33. Entries involving Annex II countries are governed by HTSUS Note 9903.01.32, which may affect rate assignments and eligibility.
Importers using Foreign Trade Zones must ensure goods are designated as Privileged Foreign (PF) status to retain applicable tariff rates. Drawback may be available in specific cases, and exemptions remain for USMCA-qualified shipments, humanitarian donations, and civil aircraft. Proper documentation is essential to claim these exemptions and avoid delays.
Finally, transshipment violations are under increased scrutiny. Goods found to be transshipped to evade reciprocal tariffs may be reclassified under HTSUS 9903.02.01, triggering an additional 40% penalty. This fine is in addition to other duties, taxes, or penalties, and is not eligible for mitigation under 19 U.S.C. § 1592. Importers should take this time to reassess origin documentation and ensure compliance.
To read our original advisory with rate tables and links to all official sources, click here. If you’re unsure how these changes affect your shipments or pricing strategy, we’re here to help.
Major Change to De Minimis Rule Will Impact Low-Value Imports Starting August 29
A major policy shift is coming that importers, eCommerce sellers, and logistics professionals can’t afford to miss. On July 30, 2025, President Trump signed a new Executive Order suspending the de minimis exemption for all commercial shipments valued at $800 or less, effective August 29, 2025. This rule, which previously allowed duty-free entry for most small-value imports, will now be replaced with full duty enforcement across the board — regardless of country of origin.
This expansion goes far beyond the earlier China and Hong Kong-specific suspension. Now, any shipment entering the U.S. via private carriers like FedEx, UPS, or DHL will be subject to tariffs — even if it’s under the $800 threshold. Goods arriving through the postal system (like USPS) will also face new duties based on either a flat rate ($80–$200 per item) or a percentage rate tied to the product’s country of origin. These changes are being implemented in response to national security concerns, the fentanyl crisis, and widespread misuse of the de minimis loophole to avoid duties and bring in counterfeit or dangerous goods.
Travelers and gift senders should note that existing personal and gift exemptions remain unchanged. Americans can still bring back up to $200 in personal items duty-free, and genuine gifts valued at $100 or less are still exempt. But for businesses relying on duty-free fulfillment models, this rule change marks a major compliance shift. Review the comparison chart below and reach out if you need help navigating the new requirements. Click Here to Read Full Executive Order
Coast to Coast by Rail? The UP and NS Merger Could Change the Game
Union Pacific’s plan to acquire Norfolk Southern is more than just a record-breaking deal. It could create the first coast to coast U.S. railroad, stretching across 43 states with direct access to 100 ports. That kind of reach would give importers and exporters more routing options, fewer interchanges, and the potential for faster, more reliable service across the country. This proposed network would also give U.S. rail a stronger edge in competing with Canadian railroads and long haul trucking.
Of course, a merger of this size still needs federal approval, and there are plenty of questions around operations, capacity, and routing shifts. But the long term upside is hard to ignore. A unified rail corridor could simplify logistics planning and cut down on transit times that currently rely on handoffs between carriers. If approved, this deal could mark a major shift in how goods move across the U.S. and could unlock new opportunities for businesses looking for cost savings and consistency in their domestic freight strategy.
Airfreight’s New Normal: Tariffs, Timing, and Trade Shifts
The airfreight industry is going through one of its most unpredictable years in recent memory. Over the first half of 2025, U.S. importers leaned heavily on air cargo, pushing air’s share of total import value higher than usual. Some months saw air imports making up over half of all incoming goods by value. Why? Tariff uncertainty is a big reason. As companies tried to beat the clock on looming tariff hikes, especially on computers and accessories, many shifted shipments from China to countries like Taiwan and Vietnam. The result? A massive uptick in air volumes from those regions, even as China’s ecommerce traffic dropped sharply due to the de minimis exemption changes.
But what goes up must settle, or shift. With reciprocal tariffs now in place, Vietnam and Taiwan exports face new 20% duties, and India’s exports are hit even harder at 25%. That’s going to shake things up again. We’re already seeing a drop in value-per-kilo, sign that lower-value goods are now being pulled in faster too. Whether this is a short-term scramble or the start of a longer-term change in strategy, one thing is clear: airfreight is no longer just about speed, it’s about survival in a volatile global trade environment.
CBP Confirms User Fee Increases Effective October 1, 2025
U.S. Customs and Border Protection (CBP) has announced updated customs user fees that will take effect on October 1, 2025. These adjustments are based on annual inflation updates required under the Fixing America’s Surface Transportation (FAST) Act of 2015. The new rates were officially published in the Federal Register on July 23, 2025.
While the Merchandise Processing Fee (MPF) ad valorem rate remains unchanged at 0.3464%, the minimum and maximum amounts applied to formal entries will increase. Several other standard CBP fees, including those for Informal Entry, Express Waybills, Passenger Arrivals, Commercial Truck Arrivals, and Dutiable Mail, will also be adjusted.
Importers, brokers, and logistics professionals should review the changes to ensure internal systems, quotes, and compliance documentation reflect the new rates ahead of the 4th quarter shipping season. The adjusted fees will also be available for testing in the ACE Certification environment before implementation. Below is a summary of the updated fees.
🔗 Official Source: Federal Register: Customs User Fees Adjusted for FY 2026
Landstar Posts $1.21B Q2 Revenue Amid Soft Market
Landstar System reported $1.21 billion in revenue for Q2 2025, down from $1.37 billion in Q2 2024. Despite the drop, the company maintained its strong balance sheet and continued paying shareholder dividends. CEO Frank Lonegro pointed to “ongoing soft demand” in the U.S. freight market and noted the company is still navigating challenging conditions, especially in truckload spot rates and volume. Net income came in at $61.3 million, compared to $79.9 million last year.
Looking ahead, Landstar is cautiously optimistic. The company projects Q3 revenue in the range of $1.20 to $1.25 billion, with earnings per share expected between $1.55 and $1.65. Lonegro emphasized the company’s asset-light model as a strength during economic cycles and highlighted their commitment to long-term investments in technology and agent support. As the freight market begins showing early signs of recovery, Landstar plans to stay agile and ready to capitalize on new opportunities.