SMB Importer's Guide to Customs and Tariffs (2025)

Here’s an understatement for you: when it comes to customs, the last year has been overwhelming for SMB importers. Duties have spiked, trade deals have been negotiated and re-negotiated, and border enforcement has tightened. Costs swing from one week to the next, making planning next to impossible.

In a recent webinar, we sat down with Adam Lewis, president of Clearit Customs Brokerage, to make sense of tariffs now. And as it turns out, there’s finally a silver lining:

> “The last eight months have been highly volatile for importers and customs brokers alike. But right now,” he said, “we are seeing signs of stabilization – the trade landscape is becoming more clear, which is a positive for all U.S. businesses.”

This guide brings together Adam’s insights and actionable strategies designed specifically for SMB importers. Whether you’re a first-time shipper or managing multiple lanes, you’ll find the customs rules, risk factors, and practical strategies you need.

> “The era of super cheap imports is over. But we’re finally seeing some stability, which is a good thing. The worst part was the unknown.” – Adam Lewis, President and Co-Founder, Clearit

Understanding Today’s Tariff Landscape

First, an overview of where tariffs actually stand.

Note: These tariff figures reflect conditions as of late August 2025. Tariff policies can change quickly, so always confirm current rates with your customs broker.

China

China is of course a major player in SMB imports, and the volatility surrounding tariffs has presented a major strain. Current tariffs for imports from China to the U.S. stack up in layers:

• Your product’s original duty rate (the “Column 1” duty from the tariff book)
• Section 301 duties from the Trump era, ranging from 7.5–25%
• A new 30% tariff, made up of a 10% reciprocal tariff and a 20% “fentanyl tariff”

As Adam explained, “It’s not really the case that rates are just 30%. You’re looking at your original duty, plus 301 duties, plus the new 30%.”

While this is far lower than the 145% levels seen earlier this year, it’s still a heavy burden.

August 7 Global Tariffs

On August 7, 2025, the Trump administration announced reciprocal tariffs on more than 60 countries, pushing some duties close to 90% – the highest since the 1930s.

Notable examples:

• Switzerland: +39%, impacting watches, chocolate, and machinery
• India: +50%, including penalties tied to Russian oil, affecting pharmaceuticals
• Brazil: +50%

Good news: the EU, Japan, and South Korea secured lower 15% tariffs, while Vietnam and Indonesia saw reductions from 46% to 20%.

Canada and Mexico

North America has certainly not been spared in the trade wars:

Mexico: Goods that qualify under the USMCA trade agreement can still enter the U.S. duty-free. But if your product doesn’t meet USMCA rules of origin, a 25% tariff now applies. The U.S. granted Mexico a 90-day extension.

Canada: Goods that qualify under USMCA can still move duty-free, but anything that doesn’t meet USMCA rules of origin now faces a 35% tariff. Sector-specific rates: 50% on steel, aluminum, and copper, and 25% on vehicles.

De Minimis Ends

Another major change is the end of the de minimis exemption, which previously allowed shipments under $800 to enter the U.S. duty-free. As of August 29, 2025, all imports, no matter how small, must go through customs and are subject to duties and fees.

For SMBs, especially e-commerce sellers that relied on sending large volumes of small parcels, this is a significant shift.

> “De minimis isn’t something that’s been around forever, and most countries don’t even have it. Businesses will have to shift their supply chain strategy and make adjustments.” – Adam Lewis

The Compliance Basics Every SMB Must Know

Customs compliance boils down to three pillars:

Classification

Getting your product’s HS code right is the first pillar of compliance. Your HS code determines not only the duty rate but also whether special tariffs apply – and unfortunately, a single misclassification can completely change what you owe. Don’t rely on the number your supplier suggests. Work with your customs broker to double-check.

Valuation

Making sure invoices reflect the true price of your goods is another key component of compliance. Duties and tariffs are calculated on this declared value, so inaccuracies can lead to paying more later, or facing penalties if customs reviews your entry. Splitting invoices to show artificially low values is an especially risky practice.

Origin

Your country of origin must be declared accurately, which is more complex than it sounds. If a product is assembled in one country but most of its parts come from another, figuring out where it was “made” depends on whether it underwent a substantial transformation.

> “You really need to know and understand their supply chain as well to ensure the country of origin you’re declaring is actually correct.”

Transshipment fraud is a growing concern – moving goods through a third country and falsely declaring origin. “If companies are found to be fraudulently transshipping goods, not only will duties apply, but there’s an extra 40% tariff plus penalties – and potentially criminal liability.”

The Challenges SMB Importers Face

The tariff environment hasn’t just raised costs – it has added layers of unpredictability that are especially tough for SMBs:

• Cost uncertainty: Tariffs can change overnight, leaving importers with unexpected bills
• Supplier viability: A sudden tariff spike can make some vendors uncompetitive
• Cash flow strain: Higher upfront duties tie up working capital
• Border delays: Enforcement has intensified, especially on Canadian and Mexican borders

Strategies to Reduce the Impact of Tariffs

Renegotiate with suppliers

Suppliers are more willing to negotiate now than ever. Ask detailed questions: Where are the parts sourced? Was the product substantially transformed in the country of assembly?

Adjust your shipping strategy

• Consolidation: Combine multiple small shipments into a single larger one
• Mode shift: Ocean freight instead of air whenever timelines allow
• Incoterms: Revisit with caution – DDP can give one clear price but may expose hidden risks

Use customs cost-saving tools

• Duty Drawbacks: Refunds of duties paid on goods that are later re-exported. Billions go unclaimed every year.
• Free Trade Zones (FTZs): Lock in the duty rate at the time goods enter the zone, even if tariffs rise later.
• Bonded Warehouses: Delay paying duties until the goods leave the warehouse. Goods can be stored for up to five years.

Decide on frontloading vs. waiting

Frontloading makes sense when tariff increases are likely or scheduled, or when your products are particularly vulnerable to supply chain disruptions. If demand is uncertain or cash flow is tight, waiting may be smarter.

Working Effectively with a Customs Broker

> “Classification, valuation, and origin are research projects, not something done on the fly once a shipment is moving.”

To get the most value from your broker:

• Provide detailed product descriptions and supplier information
• Engage before goods are shipped
• Remember: brokers don’t have a crystal ball, but they can help you minimize risks if you bring them into the process early

SMB Customs Action Checklist

• ✅ Engage with a customs broker early
• ✅ Review your HS codes
• ✅ Audit invoices for accurate valuation
• ✅ Confirm country-of-origin claims with suppliers
• ✅ Renegotiate contracts where possible
• ✅ Consolidate shipments to save costs
• ✅ Explore FTZs, bonded warehouses, and duty drawbacks