China Globalizes Rare Earth Controls as U.S. Threatens 100% Tariffs
China’s Oct. 9 MOFCOM notice extends rare earth export controls worldwide via an FDPR-style reach, a 0.1% de minimis threshold, technology-based controls on foreign production, and a new 50% affiliate rule; origin-based controls are already in force, with the others effective Dec. 1 and compliance letters required. Meanwhile, the U.S. has threatened a 100% tariff on Chinese imports effective Nov. 1, atop existing reciprocal, fentanyl-related, and Section 301 duties. Companies should map BOMs to the 0.1% threshold, trace use of Chinese know-how, review ownership exposure to listed entities, and prepare MOFCOM licensing and tariff contingency plans.
China Imposes Port Fees on U.S. Ships
In an announcement published on October 10, 2025, the Chinese Ministry of Transport announced that it will collect “special port fees” for ships that are built in the U.S., flying a U.S. flag, or vessel owned or operated by U.S. companies. These fees will apply to a vessels and operators if at least 25% of their equity is directly or indirectly held by U.S. enterprises, organizations, or individuals. These fees will be collected on a voyage basis at the first Chinese port of call at the following rates:
- 400 Chinese Yuan (CNY) per net ton as of October 14, 2025;
- Starting April 17, 2026, the fee will increase to 640 CNY per net ton; and
- Starting April 17, 2027, the fee will increase a second time to 880 CNY per ton.
- Staring April 17, 2028: 1,120 yuan per net ton.
Some exemptions are built in: China-built ships, empty vessels entering for repair, and some other categories will be exempt. Source
Dominican Republic updated the Import customs tariff (Tariff Chapters 22 and 24)
A resolution (No. DDG-AR1-2025-00006) has been issued, effective for the period 1 October – 31 December 2025, raising the ISC on alcoholic beverages and tobacco products. For alcoholic beverages: the specific amount per litre of absolute alcohol increases from RD$ 737.57 to RD$ 745.60. For tobacco (cigarettes): for a pack of 20 units of dark or blond tobacco it increases from RD$ 62.39 to RD$ 63.07; for a 10-unit pack from RD$ 31.20 to RD$ 31.53.
India Seeks to supersede 31 customs exemption notifications and prescribes effective rates of customs duty, IGST and compensation cess for goods imported into India.
The Government of India has issued a notification superseding 31 existing customs exemption notifications. The new notification prescribes the effective rates of Customs Duty, Integrated Goods and Services Tax (IGST), and Compensation Cess applicable to goods imported into India. This consolidation aims to simplify the customs exemption framework, enhance transparency, and streamline duty structures under various schemes. Importers are advised to review the revised duty rates and applicable exemptions to ensure accurate duty assessment and compliance with the updated provisions. Source
India seeks to amend AIDC, Health Cess and SWS notification to align them with notification no. 45/2025-Customs.
India Customs has updated its tariff schedule to incorporate the following changes:
- Addition of India–European Free Trade Association (EFTA) Trade and Economic Partnership Agreement (TEPA) preferential duty rates.
- Inclusion of Agriculture Infrastructure and Development Cess (AIDC) and Health Cess rates across various products.
- Importers and exporters are advised to review the revised tariff structure and update duty calculations accordingly. Source
India seeks to give effect to the first tranche of tariff concessions under India-EFTA (Iceland, Norway, Switzerland) from 01 October 2025
The Central Government, in exercise of the powers conferred under the Customs Act, 1962, has issued this notification to implement the first tranche of tariff concessions agreed upon between India and Iceland under the India–EFTA Trade and Economic Partnership Agreement (TEPA). This measure provides preferential customs duty rates on specified goods imported from Iceland, thereby operationalizing the initial phase of India’s tariff commitments under the agreement. The concessions are aimed at enhancing bilateral trade and strengthening economic cooperation between India and EFTA member states. Source
Malaysia Customs Tariff Update
Malaysian Ministry of Investment, Trade and Industry (MITI) has published the updated import tariff including the preferential duty rates for UAE origin products for all tariff chapters.
U.S. & China Set to Meet, Potential Increased Tariffs on Chinese Goods if No Deal is Made
President Trump set the tone for his upcoming meeting with China’s President Xi Jinping, saying the two countries would strike a “fantastic deal”—and warned that failure to reach an agreement could potentially raise tariffs to 155% on Chinese products. - no official statement yet
United States announces Section 232 Tariffs on Trucks and Buses
President Trump has issued a proclamation that, effective at 12:01 a.m. EDT on Nov. 1, will impose Section 232 tariffs on imports of medium- and heavy-duty trucks (MHDVs) and parts as well as buses. MHDVs and their components are subject to a 25% tariff, while buses are subject to a 10% tariff. MHDVs qualify for preferential tariff rates under the United States-Mexico-Canada Agreement (USMCA), and the Section 232 tariff applies only to content not originating in the United States. Buses do not receive preferential tariff treatment under USMCA. Truck and bus parts from Canada or Mexico are exempt from Section 232 tariffs if they follow USMCA origin rules. MHDVs assembled in the United States are eligible for a 3.75% offset of their total value over a five-year period ending October 31, 2030. These Section 232 tariffs will take effect November 1, 2025. Source
U.S. to Impose 100% Tariffs on Chinese Imports, Export Controls on Software Effective November 1
President Trump announced sweeping trade measures against China, including 100% tariffs on all Chinese imports to the U.S. and export controls on critical software, effective November 1st. This move follows China’s decision to expand limits on rare earth minerals. The escalation marks one of the sharpest ruptures in the U.S.-China relations this year, with President Trump stating there is “no reason” to proceed with the planned meeting with President Xi Jinping later this month. The term “critical software” is not yet clearly defined by the public announcements, raising ambiguity and concern in the tech sector. Analysts speculate that this could include AI/ML frameworks, design tools, compilers, embedded system software, firmware, and possibly other foundational software used in chip design and electronics.
United States Addresses the Threat to National Security from Imports of Timber, Lumber, and Their Derivative Products
President Donald J. Trump signed a Proclamation invoking Section 232 of the Trade Expansion Act of 1962 (Act) to impose tariffs on imports of timber, lumber, and their derivative products (wood products) to bolster American industry and protect national security.
- The Proclamation imposes a 10% global tariff on imports of softwood lumber.
- The Proclamation imposes a 25% global tariff on certain upholstered furniture, which will increase to 30% on January 1.
- The Proclamation imposes a 25% global tariff on kitchen cabinets and vanities, which will increase to 50% on January 1.
- Trading partners who negotiate with the United States to address the threat of wood imports to the national security of the United States may be able to secure an alternative to the pending tariff increases.
- The United Kingdom, the European Union, and Japan will enjoy more favorable treatment that reflects the terms of their trade deals with the United States.
- The Section 232 tariff on subject wood imports from the United Kingdom will not exceed 10%.
- The combined Section 232 tariff and most-favored nation tariff on subject wood imports from the European Union and Japan will not exceed 15%.
- Products that are not subject to these Section 232 tariffs will generally be subject instead to reciprocal tariffs.
- The treatment of products on the list of Potential Tariff Adjustments for Aligned Partners (PTAAP) remains unchanged unless an antidumping or countervailing duty order applies. Source
U.S.- China Reach Framework Agreement, Updates for Tariffs on Canada, Malaysia, and Cambodia
China
The U.S. and China reached a framework agreement to avert the imposition of 100% tariffs on Chinese imports as both sides seek a trade deal ahead of a summit between Trump and Xi Jinping. As part of the framework: China agreed to delay export controls on rare earth minerals, which are critical in electronics, and to ease its soybean boycott of U.S. farmers.
Canada
The U.S. announced an additional 10% tariff on Canadian imports, effective immediately/soon although the exact effective date hasn’t been published. Canada signalled readiness to engage in trade talks with both China and the U.S., despite the tariff escalation with the U.S.
Malaysia
A trade deal has been reached with Malaysia (Joint Statement on United States-Malaysia Agreement on Reciprocal Trade – The White House). Malaysia has committed to provide significant preferential market access for U.S. exports across a wide range of goods: chemicals; machinery & electrical equipment; metals; passenger vehicles; dairy; horticultural products; poultry; pork; rice; fuel ethanol. The U.S. will maintain a 19% reciprocal tariff rate on Malaysian-origin goods, except for specific products (listed in Annex III of Executive Order 14346) which will receive a 0% reciprocal tariff rate.
Cambodia
The U.S. and Cambodia have signed a reciprocal trade agreement under which the U.S. will maintain a 19% tariff on Cambodian exports (per Executive Order 14257), while Cambodia agrees to apply its own customs duties on U.S. goods in line with a negotiated schedule. Cambodia has also agreed to lower or adjust non-tariff barriers and adopt U.S. regulations or certifications (especially for goods like vehicles and agricultural products) to ease market access for American exports. In exchange, the U.S. may exempt certain Cambodian goods from the 19% tariff per the agreement.
United States announces trade breakthrough with South Korea and Japan on Asia trip
The United States has reached trade agreements with Japan and South Korea. The U.S. will lower tariffs from a threatened 25% down to 15%, and Japan and South Korea will both invest hundreds of billions of dollars in U.S. projects, selected by the U.S. government. South Korea will invest $350 billion and Japan will invest $550 billion.
US cuts tariff on China and China agrees to one-year rare earth export deal
The U.S. and China met in person (Donald Trump and Xi Jinping) on 30 Oct 2025 in Busan, South Korea, and announced a framework agreement aimed at easing trade tensions. The U.S. announced it will reduce the overall tariff burden on Chinese imports from roughly 57% to 47%. China will pause new export controls on rare-earth minerals for one year (important for tech and defence supply chains). The U.S. also indicated a reduction of a “fentanyl-related” tariff on Chinese goods from ~20% to 10% in exchange for Beijing committing “to work very hard” on stopping fentanyl precursor shipments.