FedEx’s China-to-US Surcharge and De Minimis Changes

At Gain Consulting, we’re here to help U.S. shippers stay agile in a rapidly shifting supply chain landscape. FedEx’s recent announcement of a reinstated China-to-U.S. surcharge, coupled with upcoming changes to the de minimis exemption, signals new challenges and opportunities for shippers sourcing from Asia. Here’s what you need to know to prepare, based on the latest industry updates.

FedEx’s Temporary Surcharge Returns

Starting April 15, 2025, FedEx is imposing a $0.45 per pound demand surcharge (with a $1 minimum per shipment) on parcels from China, Hong Kong, and the Philippines entering the U.S. This fee, which echoes a prior $1 per-pound surcharge from September 2024 to January 2025, will end on May 2, 2025. The timing aligns with significant changes to U.S. customs policies, as FedEx adjusts its network to handle increased demand and regulatory shifts.

This surcharge reflects the broader volatility in the China-to-U.S. trade lane, driven by shippers rushing inventory to avoid escalating tariffs. UPS has followed suit with a $0.29 per-pound fee, signaling a trend among major carriers to offset costs amid trade uncertainties.

What This Means for You: Expect higher shipping costs for Asian imports through early May. Review your shipment schedules and budgets now to minimize the impact of this temporary surcharge.

De Minimis Exemption Changes Loom

The U.S. de minimis exemption, which allows shipments valued under $800 to enter duty-free, faces a major overhaul. Starting May 2, 2025, this exemption will no longer apply to goods from China and Hong Kong, with other countries potentially following as duty collection systems scale up. This change, driven by the Trump administration’s tariff policies, targets the flood of low-value e-commerce parcels and aims to curb illicit shipments.

FedEx is readying for this shift by adjusting its customs clearance fees. As of May 2, sub-$800 shipments will incur a Disbursement Fee of $4.50 or 2% of duties and taxes (whichever is greater) for FedEx’s international package and express freight services. Shippers using third-party billing for duties outside the U.S. will face a Duty and Tax Forwarding Fee of $8.50 or 2% of duties and taxes. Fees for shipments over $800 remain unchanged.

What This Means for You: The end of de minimis for Chinese goods will raise costs for low-value imports, particularly for e-commerce and direct-to-consumer models. Expect longer clearance times and higher duties, especially for high-volume shippers.

Why This Matters for U.S. Shippers

The surcharge and de minimis changes come as shippers stockpile inventory to beat tariff hikes, creating a short-term spike in demand. FedEx executives, including EVP Brie Carere, have emphasized their readiness to handle these shifts, particularly for Asian markets. However, while de minimis shipments have fueled parcel growth, FedEx notes that business-to-business volumes remain their core strength, offering some stability for commercial shippers.

The broader trade war, with tariffs on Chinese goods reaching up to 145% in some cases, adds complexity. Shippers must balance immediate cost pressures with long-term strategies to maintain competitiveness.

What This Means for You: If you rely on Chinese imports, now is the time to reassess your supply chain. Pre-tariff stockpiling may help, but rising costs could squeeze margins without proactive planning.

How Gain Consulting Can Help

At Gain Consulting, we empower U.S. shippers to navigate disruptions like these with confidence.

Our team can support you in:

• Cost Optimization: Analyze shipping patterns to mitigate surcharge and duty impacts.

• Customs Compliance: Streamline processes to adapt to new clearance requirements.

• Strategic Sourcing: Diversify suppliers to reduce reliance on tariff-heavy regions.

• Forecasting: Leverage data to anticipate rate hikes and demand shifts.

Don’t let surcharges and tariff changes derail your operations.

Contact Gain Consulting today for a tailored strategy to keep your supply chain resilient and cost-effective.

Source: Supply Chain Dive, April 14, 2025