U.S. Imports – Rising Costs, Risks, and Workload Surge

As companies engage with new tariffs, evolving compliance demands and rising operational costs, the importing landscape has changed dramatically in 2025. What once was a relatively efficient system of customs clearance has transitioned to a resource-intensive process, requiring more staff, higher fees, and far greater vigilance.

De Minimis Ends, and the Effects are Immediate

The suspension of the long-standing de minimis exemption on August 29, 2025 has been one of the most disruptive changes. Previously, shipments valued under $800 could enter the U.S. duty-free with minimal clearance procedures. With that door now shut, every parcel, with the exception of gift packages valued at $100 or less, must undergo formal customs entry and tariff assessment. The impact has been staggering: the Universal Postal Union reported an 80% plunge in inbound postal traffic in the first week after the policy shift, with several international carriers suspending or restricting low-value shipments altogether.

For small businesses that rely on inexpensive overseas goods, the increased costs of import are significant. A boutique retailer importing costume jewelry, for example, now faces not only tariffs on items once duty-free but also the added expense of brokerage fees for each entry line. Retailers have already reported price hikes of $10–$20 per item as these added costs filter down to consumers.

Section 232 Tariffs Add Complexity

The cost pressures are compounded by tariff increases under Section 232 that were imposed as a matter of national security interests.  For example:

• Automotive – Importers face an additional tariff on vehicles, light vehicle trucks and vehicle parts of 25%. USMCA provides exemption from the automobile tariff, as well as trade agreements with some countries such as the U.K.  The tariff may also be mitigated with an import rebate based on the final vehicle assembly and its MSRP.  Importers must be diligent in maintaining the appropriate documentation (e.g., USMCA certificates and U.S. origin content) to substantiate tariff reduction or elimination.
• Steel and Aluminum – In June 2025, while there are exceptions depending on the country of origin, the general tariffs on steel and aluminum doubled from 25% to 50%.  Derivative products like fasteners, cookware, and automotive parts were also added to the scope. Importers now must not only determine whether their goods contain steel or aluminum but also must calculate the exact content in value, as well as in kilograms, to ensure proper duty assessment.  If the contents for steel or aluminum are unknown, the product is subject to a 50% duty on the total value of the item. Further, the country of melt/pour for steel and country of smelt/cast for aluminum are also required elements for U.S. import.  With regard to aluminum, the penalty for an unknown country of smelt/cast is substantial – a 200% tariff is paid on the full value of the product.
• Copper – In July 2025, following a 5-month investigation, a 50% tariff was assessed on copper products and certain derivatives. Similar to the tariffs on steel and aluminum, importers must report the copper content in value and in kilograms.  If the value of the copper content cannot be determined, CBP will assess the 50% duty on the total value of the article.  

With the onslaught of additional reporting requirements for goods that are subject to Section 232 tariffs, brokers are requesting more detailed material breakdowns from suppliers to support duty determination. Importers must keep detailed documentation such as bills of materials and invoices. This addition of paperwork adds to an importer’s operational costs and may easily delay clearance if compliance issues are not resolved by time of port arrival.

Staffing Pressures and HTS Risks

With every shipment requiring full documentation and tariff assessment, companies are being forced to add personnel to manage customs operations. Many import teams that once managed compliance with a handful of specialists are now expanding, retraining, or outsourcing to cope with the surge in filings.

The risks of error are equally heightened. A single incorrect HTS code, valuation mistake, or origin misstatement – issues that might previously have caused only minor delays – now risks significant penalties or investigation. For instance, a misclassified textile product could result in both unpaid duties and exposure under the False Claims Act if authorities deem the misstatement intentional. The consequence of misreporting steel content, in particular, may result in severe penalties.  The Federal Register on Proclamation 10896 (2/10/25) advises:

“CBP shall prioritize reviews of the classification of imported steel articles and derivative steel articles and, in the event that it discovers misclassification resulting in non-payment of the ad valorem duties proclaimed herein, it shall assess monetary penalties in the maximum amount permitted by law and shall not consider any evidence of mitigating factors in its determination. In addition, CBP shall promptly notify the Secretary regarding evidence of any efforts to evade payment of the ad valorem duties proclaimed herein through processing or alteration of steel articles or derivative steel articles prior to importation. In such circumstances, the Secretary shall consider the processed or altered steel articles or derivative steel articles for inclusion as derivative steel articles pursuant to clause 5 of this proclamation. well – including the entire product value being subject to Section 232 tariff “underreported declarations may be subject to severe consequences, including but not limited to significant monetary penalties, loss of import privileges, and criminal liability, consistent with United States law.”

A Heavier Burden on Importers

Taken together, these changes have reshaped the cost of doing business at the border. Importers now face higher duties on everyday products, expanded brokerage and carrier fees, and the need for larger compliance teams to manage increasingly complex filing requirements. Even companies that invest heavily in compliance are at risk of reputational harm if caught up in the broader enforcement surge.

The message is clear: importing has become slower, costlier, and riskier. Businesses that once depended on streamlined clearance must now plan for heavier compliance burdens, higher operational costs, and the possibility of legal exposure when mistakes occur. 

What This Means for Importers

• Clearances are slower: With de minimis gone, even small parcels require full entry and inspection, creating bottlenecks.
• Costs are rising: Higher duties, expanded brokerage fees, and added staffing needs are driving up expenses across the board.
• Compliance risks are greater: Errors in HTS codes, valuation, or origin reporting can now trigger penalties, investigations, or FCA suits.
• Staffing demands are higher: Many companies are hiring or retraining personnel to keep pace with the volume of filings.
• Reputational exposure is real: Enforcement actions can bring both financial penalties and public scrutiny.

In conclusion, importers must prioritize proactive compliance and strategic planning to control costs, maintain efficiency, and to safeguard competitiveness in an increasingly challenging trade landscape.

At Allyn International, we are committed to supporting the global trade community with strategic, forward-thinking solutions to help navigate today’s complex tariff landscape. Whether you have questions about tariffs, trade agreements, or would like to explore strategies to reduce their impact on your business operations, our team is here to help. Contact us today for a consultation at sales@allynintl.com, call 239-489-9900, or reach out here.

Contributor: Rebecca Anderson

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About Allyn International

Allyn International provides high quality, customer-centric services and solutions for the global marketplace. Allyn's core products include transportation management, logistics sourcing, freight forwarding, supply chain consulting, tax management and global trade compliance. Allyn clients range from small local businesses to Fortune 500 firms. Allyn conducts business in more than 20 languages and has extensive experience in both developed and emerging markets. Highly trained experts are positioned throughout North and South America, Europe and Asia. Allyn’s regional headquarters are strategically located in Fort Myers, Florida, U.S.A., Shanghai, P.R. China and Prague, Czech Republic. For more information, visit www.allynintl.com