US Tariff in 2025: Key Updates You Can't Afford to Miss

Tensions in global trade have always had ripple effects, but today’s tariff changes in the US are more than just headlines, they can influence everything from business costs to currency exchange rates. Whether you are an immigrant supporting family back home, an expat running a business, or someone simply trying to get the best deal on a money transfer, staying informed about US tariffs matters.

In this guide, you will find recent updates on US tariffs and how they could impact you, especially if you send money internationally. We will break down what’s happening, why it matters, and how you can protect your wallet using tools like CompareRemit’s money transfer comparison platform.

What’s the Latest Update on US Tariffs?

The past few months have seen major shifts in US tariff policy, from sudden hikes to temporary trade truces. These changes have had a ripple effect on global trade, exchange rates, and even the cost of sending goods or money abroad.

If you are keeping an eye on international remittances, business imports, or cross-border payments, here’s a quick breakdown of the key developments you should know.

April 2025: Sharp Tariff Increases on Imports

The US introduced a broad 10% “Liberation Day” tariff on most imported goods. Tariffs on certain Chinese products jumped as high as 145%, escalating the ongoing US-China trade tensions and raising costs on a wide range of imports.

May 2025: 90-Day Tariff Truce Between US and China

In a significant shift, both countries agreed to a temporary 90-day truce starting May 14. The US reduced tariffs on Chinese goods from 145% to 30%, and China lowered its retaliatory tariffs from 125% to 10%. The move brought temporary relief for importers, exporters, and consumers.

End of De Minimis Exemption for China, Hong Kong & Macau

The US removed the $800 duty-free threshold for small imports from China, Hong Kong, and Macau. Now, all packages from these regions are subject to tariffs, a change that especially impacts cross-border e-commerce and small-scale goods shipments tied to remittances.

May 28, 2025: Court Overturns Some Emergency Tariffs

A US court struck down many tariffs imposed under emergency trade powers. Only those on steel, aluminum, and autos (under Section 232) remain. Despite the ruling, the average US tariff rate is still near historic highs, holding steady around 6.9–7.0%.

Why Do Tariffs Matter to You?

Tariffs might seem like high-level policy moves, but their impact shows up in your daily life, from what you pay at checkout to how much it costs to send something to your loved ones abroad.

Everyday Goods Are Getting More Expensive

Tariffs directly raise the price of imported products, and that trickles down to consumers.

• The average US household could pay around $950 more per year due to higher prices.
• New cars cost about $2,400 more, and essential materials like steel and aluminum are now significantly pricier.
• These increases hit low-income families the hardest, stretching already tight budgets.

Sending Items or Shopping Online? It’s Costlier Now

If you are shipping goods from China, Hong Kong, or Macau, even small packages now face import duties.

• All parcels, regardless of value, are taxed, making it more expensive to send gifts or essentials to family in the US.
• Online shoppers and small businesses relying on affordable overseas imports will see higher prices and possible delays in delivery.

Bigger Economic Ripples You Will Feel Locally

Tariffs don’t just affect trade, they slow down the broader economy.

• The US economy is expected to grow 0.2 percentage points less in 2025.
• Exports are down 3.9%, and job growth is slowing, especially in industries tied to global trade.
• As global supply chains get disrupted, product shortages and price spikes can show up across the board, from groceries to electronics.

How US Tariffs Affect Popular Remittance Corridors

Tariffs don’t directly tax your money transfers, but they can still influence how much you can send.

A Closer Look at Key Remittance Corridors

India, the top destination for remittances from the US, could feel the pinch. Proposed taxes on outward remittances and the broader economic impact of tariffs may slow US-India remittance flows, affecting the financial support many families rely on.

In Latin America and the Caribbean, where over 80% of remittances come from the US, rising living costs and potential job losses due to ongoing trade tensions could weaken remittance growth in the region.

And for families who regularly send goods overseas, the end of the duty-free threshold on packages from China, Hong Kong, and Macau means higher shipping costs, especially for small shipments that previously bypassed tariffs. This raises the overall cost of supporting loved ones through gifts or essentials sent across borders.

What This Means for You

While global remittance corridors remain resilient, continued tariff hikes and economic uncertainty can impact the amount that senders in the US can share. If you are sending money abroad, it's more important than ever to compare rates, track fees, and stay informed.

Use tools like CompareRemit to maximize the value of every dollar you send, even in a shifting economic landscape.

How to Stay Ahead of Tariff Changes

While you can’t control US tariff policies, you can take smart steps to protect your finances and maximize your remittances.

1: Track exchange rates daily

Use CompareRemit’s exchange rate tracker to monitor live USD conversion rates. Even a small shift in the rate can make a difference, especially if you are sending large amounts or transferring regularly.

2: Compare money transfer services

Some providers charge lower fees or offer better rates than others, and those options can change quickly based on tariff-driven exchange rate fluctuations. 

CompareRemit lets you compare:

• Fees
• Exchange rates
• Transfer speed
• Delivery options

3: Stay Updated on Trade News

Bookmark trusted sources like the USTR and financial news platforms. You can also follow CompareRemit's news section for regular updates that directly impact remittance users.

Maximize Your Transfers Despite Tariff Changes

Tariffs may feel like distant government decisions, but their effects trickle down to your wallet, especially if you are sending money abroad. Currency shifts, price changes, and new economic alignments can all impact your remittance strategy.

But you don’t need to become a trade expert. Tools like CompareRemit simplify everything, from tracking exchange rates to comparing top remittance providers, so you can keep more of your money, no matter what’s happening in Washington or Beijing.

Frequently Asked Questions (FAQs)

Q. How do US tariffs affect exchange rates?

Tariffs can influence the strength of the US dollar and other currencies, which directly impacts how much foreign currency you receive when sending money abroad.

Q. Will tariffs make money transfers more expensive?

Indirectly, yes. Tariffs can lead to currency volatility or higher costs for goods, which may reduce the amount of money you have available for international transfers.

Q. Are tariffs good or bad for remittances?

It depends. Tariffs can cause short-term currency swings that either increase or decrease the value of your remittance. Using tools like CompareRemit helps you time your transfers for the best value.

Q. Will sending goods to family abroad become more expensive?

Yes. With the removal of the $800 duty-free exemption for packages from China, Hong Kong, and Macau, even small personal shipments now face import duties, increasing the cost of supporting a family through non-cash means.

Q. How can I protect the value of my remittance during economic uncertainty?

Compare exchange rates, transfer fees, and delivery speed before sending. Using comparison tools like 

CompareRemit

helps ensure you are getting the most value despite fluctuating market conditions.