When many sellers see “12.5%,” their first reaction is: “Well, that’s not too bad.”

This reaction proves one thing—the score hasn't been settled yet.

This isn't a new tax rate. It's a cumulative tax rate.

I. What Exactly Is Being Added?

On June 2, 2026, the Office of the United States Trade Representative (USTR) officially announced a new round of Section 301 tariffs, which took effect on July 24.

There is only one key point: On top of the original tariffs, an additional 12.5% is being imposed, and not a single penny has been reduced from the existing punitive tariffs of 7.5%–25%.

Here's the simplest algorithm:

Suppose the current tariff rate for your product category is 15%; after the increase, it will become 27.5%. If it was originally 25%, it will become 37.5% after the increase.

Profit margins for most cross-border e-commerce product categories range from 10% to 20%.

This cut isn’t just a sacrifice—it’s taking everything, principal and interest alike.

II. The two or three paths that were thought to offer an escape have all been cut off

After the new tariff policy was announced, many people began to wonder: Is there a way to get around it?

Transit through Vietnam, Thailand, and Mexico—not allowed

This list covers approximately 60 economies worldwide, including Vietnam, Thailand, Mexico, and Brazil. The previous practice of using third countries to “launder” the country of origin has been systematically blocked. At the same time, U.S. Customs has significantly stepped up its scrutiny of traceability documentation and certificates of origin, and routine, rigorous inspections have already begun.

List of Exemptions—Pretty Much Useless

The exemption list covers only energy, rare earths, aviation parts, and specialty pharmaceuticals. Almost none of the main product categories in general cross-border e-commerce—home appliances, 3C products, clothing, furniture, and daily necessities—are eligible for exemptions.

Relying on overseas warehouses to hold out—but it’s just not enough

Overseas warehouses have completely lost their ability to help sellers avoid customs duties. This applies not only to new shipments but also to existing inventory already in the warehouse, for which sellers must retroactively pay the 12.51 TP3T duty. Many sellers now find themselves in a dilemma: whether they sell the goods in their warehouses or not, they will incur a loss.

III. There is one more window, but there are only a few weeks left

The policy is currently in a transitional period before it officially takes effect. There are two key dates that cross-border sellers need to be aware of:

July 6 is the deadline for submitting written comments—this is the last chance to apply to the USTR for a category exemption.

July 7: Public Hearing—The tariff landscape for the U.S. market in the second half of the year has been largely finalized.

If there’s room for appeal regarding your product category, now is your only chance. But this isn’t something you can just get away with by sending a casual letter. You’ll need comprehensive compliance documentation to support your case: supply chain traceability, cost calculations, and details on alternative sources. If your submission isn’t professional enough, it’ll be a waste of time.

Scan the QR code to add a consultant, reply with “tariffs,” and we’ll help you assess the tax health of your current structure.Cell phone: 18676749275 ｜ WeChat: qcygscszk

IV. What Can Be Done Now

I'm not telling you to panic. I'm telling you to think it through and then make a decision.

✔ Recalculate the actual tax burden for each SKU currently for sale (original customs duty + 12.51 TP3T), and determine which ones still have room for adjustment and which ones do not

✔ Cut your losses early on unprofitable SKUs; don’t wait until July 24 to deal with them.

✔ Ensure that all supply chain documents, certificates of origin, and traceability records are properly organized and in order—routine customs audits are already on the way.

✔ Carefully assess the pace of market diversification—Southeast Asia, the Middle East, and Europe. Don’t wait until “the U.S. market stabilizes”; put this on the agenda now.

Whether to focus exclusively on a single market or spread your risks across multiple markets—the answer varies depending on the stage a seller is in. But one thing remains the same: you need to get your current tax and compliance status in order first before you can figure out what to do next.

V. What Can Qi Cai Ying Do for You?

You can’t change tariff policies, but you can control your compliance status and cost structure.

When faced with regulatory pressure, many cross-border sellers make a mistake right from the start—either by haphazardly filing supplementary declarations or by doing nothing at all and simply waiting to see what happens. Both approaches can lead to even bigger problems.

Qicaiying has been serving cross-border e-commerce and global expansion companies for over 10 years. During periods of policy uncertainty like this, here’s what we do to help sellers:

✔ Identify tax exposures in the company’s current structure and pinpoint the actual risk areas

✔ Assess the practical effectiveness of Hong Kong companies and offshore structures under the new tariff environment, and avoid ineffective arrangements

✔ Systematic organization of supply chain documentation and compliance records to reduce the risk of customs audits

✔ Provide one-stop support for cross-border financial and tax compliance in line with market diversification trends

When it comes to tariffs, a tax and finance firm can’t help you change the rules. But we excel at helping you build a solid structure and ensure full compliance within this environment.

Diagnose first, then act.

Scan the QR code to add a consultant, reply with “tariffs,” and we’ll help you assess the tax health of your current structure.Cell phone: 18676749275 ｜ WeChat: qcygscszk