Trump's Trade War With China Nears Shipping Deadline: Why May 27 Matters
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A critical trade deadline set for May 27 will end temporary exemptions from tariffs on Chinese and other foreign goods, as laid out in recent executive orders by President Donald Trump and customs guidance. The move is part of a broader expansion of the administration's reciprocal tariff policy.
The exemption, referred to by Customs and Border Protection (CBP) as the "reciprocal tariff savings clause," allows certain goods in transit to avoid newly imposed tariffs. The protection will expire at 12 a.m. ET May 27. Goods arriving after that time will be subject to tariffs.
According to CBP guidance released April 4 and April 8, the reciprocal tariff savings clause applies to goods that were loaded onto a vessel and in transit on their final mode of transport before 12:01 a.m. ET on April 5. These goods have been allowed to enter the U.S. without incurring the newly established tariff rates.
Newsweek has reached out to the White House for comment.
President Donald Trump speaks with reporters in front of the West Wing of the White House on May 8, 2025, in Washington.
President Donald Trump speaks with reporters in front of the West Wing of the White House on May 8, 2025, in Washington.
Alex Brandon/AP Photo
Why It Matters
Trump introduced the reciprocal tariff system to align U.S. tariff policy with perceived trade imbalances and foreign trade practices. Executive guidance and memoranda have said that the policy will be enforced comprehensively and without further delay unless otherwise amended by presidential action.
What To Know
Once the exemption expires, all applicable imports will be assessed the baseline reciprocal tariff rate of 10 percent or higher, depending on the country-specific or product-specific rate established by presidential order. For China, a 125 percent ad valorem tariff has been imposed on most imports as of April 9.
CBP has also confirmed that the previous exemption—which had allowed shipments valued under a certain threshold to enter duty-free—was revoked effective May 2. As a result, even small-scale imports from China will be subject to new tariff obligations.
With the removal of the savings clause, goods arriving from China and other countries that benefited from the exemption will now face full tariff rates. These include a wide range of items such as electronics, household goods, and textiles. CBP notices and executive orders stipulate that only limited product categories remain excluded under updated annexes to the executive orders.
Those exclusions, updated through a presidential memorandum on April 11, now cover specific items including smartphones, computers, and certain components under designated Harmonized Tariff Schedule (HTSUS) headings.
What Happens Next
After May 27, any imports from China that do not qualify for an exemption will be subject to tariffs. CBP has advised importers that tariff refund procedures and HTSUS modifications to implement these orders will be published by May 16.
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