Tariff Changes and Trade Shifts: What It Means for West Coast Trucking and Drayage

Update 2/7/25

President Trump has reinstated the de minimis exemption for Chinese imports—at least temporarily. The exemption, which allows duty-free entry for shipments valued under $800, was previously revoked as part of a broader tariff package. However, following significant industry pushback and concerns over customs processing delays, the administration has reinstated de minimis eligibility until the Department of Commerce determines that Customs’ systems can effectively process and collect tariff revenue on these shipments.

Under the revised rule, duty-free de minimis treatment will remain in place for qualifying imports from China, but will be revoked once the Secretary of Commerce notifies the President that CBP has the infrastructure in place to efficiently manage the processing and duty collection for these goods. This means that while importers have a temporary reprieve, the policy is subject to change once enforcement capabilities catch up. For logistics companies, the uncertainty surrounding de minimis underscores the need for strong contingency plans, bulk import strategies, and partnerships with freight service providers to navigate shifting trade policies.

The latest round of U.S. trade policy changes is sending ripples through global supply chains, and trucking and drayage operators on the US West Coast need to be ready. With tariffs on China in effect and the suspension of the de minimis exemption on top of a temporary pause on Mexico’s tariffs, unfolding trade issues can create bottlenecks at ports, impact equipment availability, and add delays to cargo moving inland. Terminal Transfer monitors these developments to ensure our clients avoid potential disruptions.

Impact of China Tariffs on Asia-Pacific Cargo

As of February 4, the U.S. has implemented a 10% tariff on Chinese imports, prompting China to introduce retaliatory duties set to begin on February 10. While some manufacturers have already moved production to Vietnam, Thailand, and other Asia-Pacific countries to avoid previous trade wars, China remains a major exporter to the U.S. West Coast ports—Los Angeles and Long Beach in particular—handle a significant volume of Asia-Pacific cargo.

• Imports from China could slow down as companies absorb tariff costs, leading to port cargo volume fluctuations.

• If importers delay payment of duties, cargo could sit longer in port terminals, tying up chassis and container availability for drayage operators.

• Shifts in sourcing may increase cargo volumes from Southeast Asia, requiring trucking capacity and transit times adjustments.

The Mexico and Canada Tariffs Paused: A Temporary Relief for Cross-Border Trade

As negotiations continue, the U.S. has delayed the planned 25% tariffs on Mexican and Canadian imports for 30 days. This means cross-border freight will continue without immediate cost increases, but the situation remains uncertain. Delays are likely as shippers who avoided the duties this week work to move cargo within the thirty-day reprieve.

• If tariffs go into effect after the pause, trucking demand for Mexican imports may surge as shippers try to move goods ahead of cost increases.

• West Coast trucking routes may see fluctuations in volume depending on how negotiations play out.

Suspension of the De Minimis Exemption: More Congestion at Ports and Warehouses

One of the biggest immediate changes is the removal of the de minimis exemption, which previously allowed duty-free imports under $800 to enter the U.S. quickly and without extensive customs processing. Now, no matter how small, every package will be subject to duties, customs paperwork, and potential delays.

• E-commerce cargo that once moved smoothly may now face longer clearance times, tying up container space and adding to warehouse congestion.

• Unpaid duties could cause shipments to remain at the port, leading to container shortages and chassis bottlenecks for drayage operators.

• Freight forwarders and customs brokers may experience processing slowdowns, affecting how quickly trucks can pick up and move loads.

  
  

What This Means for West Coast Trucking and Drayage

With tariffs, trade negotiations, and customs policies all shifting at once, the trucking industry in the U.S. West Coast must be ready for volume fluctuations, delays in cargo releases, and potential chassis shortages if containers get stuck at ports. Terminal Transfer works closely with our partners to track equipment availability, optimize scheduling, and ensure freight moves efficiently.

With shifting trade policies and rising congestion risks, having a logistics team that understands the industry is more important than ever. Contact Terminal Transfer today to discuss how tariff changes, the removal of the de minimis exemption, and chassis availability could impact your freight and how to keep your shipments moving efficiently. 

If you’re concerned about how the de minimis exemption changes, new tariffs, or port congestion might impact your freight operations, contact Terminal Transfer today. Our team is here to help you navigate these challenges and keep your cargo moving.