Customs Tariff Transitioning May 12th 2025 Regarding Rare Earth Metals with China as the Country of Origin.There is a lot of confusion about Tariffs, and how tariffs are being applied to imports.We'll discuss here how magnets are classified, and how the tariffs are transitioning.Generally magnetic HTS codes can be classified as follows: 8505 Classification is: Permanent magnets and articles intended to become permanent magnets after magnetizationThe sub classifications often used are8505.11.00 - (of Metal) - See 8505 for General Description8505.11.0010 - (AlNiCo) - See 8505 for General Description8505.11.0030 - (Ceramic / Ferrite) - See 8505 for General Description8505.11.0050 - (Sintered Samarium Cobolt / SmCo) - See 8505 for General Description8505.11.0070 - (Sintered Neodymium-Iron-Boron / NdFeB) - See 8505 for General Description8505.19.1000 - (Flexible Magnets) - See 8505 for General DescriptionWill my orders be affected by the latest US Customs Tariffs?Let's review again when these Tariffs came to be enacted.Prior to February 1st, 2025 - General Tariff Rate on most Magnetic products ranged between 2.1% and 4.9%February 1st, 2025 - President Trump signs an executive order to impose and Additional 10% on all imports from China. These tariffs are scheduled to start February 4th. February 4th, 2025 - The US Government imposes the scheduled 10% additional tariff on all Goods from China. This affects any product shipping from China, with China as the Country of Origin. As nearly all Neodymium Magnets are sintered in China, China will be the Country of Origin for most Neodymium Magnets. This change was enacted at 12:01am on February 4th. March 4th, 2025 - The US Government imposed an additional 10% tariff on all Goods from China, primarily as a response to Chinas handling of the fentanyl crisis. This again affects all goods being imported from China, Including Neodymium Magnets. This brings the total China additional tariffs to 20%. April 2nd, 2025 - The US Government imposed an additional 34% tariff on all Goods from China as a result of reciprocal tariffs. This brings the total China additional tariffs to 54%April 9th, 2025 - The US Government imposed an additional 104% tariff on all Goods from China because of Chinese induced reciprocal tariffs. At the end of the day, it was clarified by the White House the total China additional tariffs will be at 145%. May 12th, 2025 - The US Government and China both agree to reduce their respective trade tariffs. The tariff reduction will reduce the US reciprocal tariff from 125% to 10%. This yields the total tariff imposed by the US Government will now be the original 20% (fentanyl crisis) + the new tariff rate of 10%, yielding a total of 30% + whatever base tariff is in the HTS schedule for the item. For NdFeB magnets this is 2.1% yielding a total of 32.1% overall. This new tariff rate will be in place for 90 days. Depending on the export date of your product, the tariff schedule will be assessed according to how the tariffs were implemented. This is a very confusing time of transition, as determining what the actual tariff rate which will be assessed by US Customs DHS, depends on the date and time of the original export. Example:Assume NdFeB (HTS 8505.11.0070) at a Base of 2.1%Customs Export Date: April 1st, 2025Since the tariff at that time was the based on 2.1% + 10% (Feb 1) + 10% (Feb 4) the total tariff assessed will be 21.1%The base tariff additional on this date would be classified with HTS 9903.01.24, with a rate of 20%The HTS 9903.01.24 is basically the 10% (Feb 1) + 10% (Feb 4), simplified for Customs documentation. Since the example above was exported on April 1st, 2025, it would also retain an exemption for the reciprocal tariffs on April 2nd, and April 9th. The HTS code for this exemption is 9903.01.28, and denotes to customs that the higher duties are exempt from the newer additional reciprocal tariffs. If in this example the shipment had not been exempt from the Feb 1st and Feb 4th tariffs, but it was exported prior to April 9th 12:01am, then it would exempt from the additional tariffs between those dates and would have the exemption HTS classification of 9903.01.63. Amazing Magnets always seeks to provide clarity to our customers as to how these tariffs are being implemented, and will keep information updated as new information is available. As these additional tariffs are pass-through fees, we understand this is a frustrating time. While we can't speculate as to when the tariffs will be rescinded, and by how much, we will work with you to come up with options to work around your specific needs. Planning ahead is a strategy that has worked well for most of our buyers. Buyers who already have strategic purchasing agreements, blanket orders, or purchasing contracts with Amazing Magnets have benefited from avoiding most of these additional tariffs. Take advantage of our extensive stock of Neodymium Magnets which can be purchased online for immediate delivery, and without additional tariffs. Eventually should the additional tariffs and reciprocal tariffs continue, the cost of our stock inventory will increase due to the tariff prices being included in our stock inventory. New Blanket Orders, Custom Orders, Pricing or Stocking Agreements will have the tariffs included in the price. Demand for Rare Earth Magnets is not going away, and Amazing Magnets will continue to supply Neodymium Magnets regardless of where the raw material will be sourced, and we will continue to do so with our customers’ best interest in mind. May 12th 2025 Tim Boettcher #Industry News #Tariff
