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Important Information about Tariffs on Purchase of Goods

August 29, 2025 - 12:00am

Due to evolving changes in tariff rates for imports into the United States, purchasers should review the following important information and reminders related to the purchase of imported goods:

General Purchasing Guidance for Imported Goods

As of April 30, 2025, Purchasing Services and the University’s contracted customs broker, Mohawk Global Logistics (MGL), have seen equipment orders  required to pay U.S. Customs import tariffs, duties, taxes, and fees as high as 170% of the product cost upon entry to the United States, even if the orders were placed before tariffs went into effect. An example is equipment purchased at a value of $12,000 could increase in cost to $20,400 with the tariffs added. The website for the Office of the United States Trade Representative has the latest information regarding Presidential tariff actions.

Given the evolving state of tariffs on goods imported into the United States, we are providing the following guidance related to purchases:

For purchase orders placed prior to increased tariffs:

Purchaser Considerations:

  • Depending on a variety of factors, cancellation of the purchase order after the item is received in U.S. Customs might be an option, but cancellation might still result in numerous fees to U.S. Customs, MGL, and possible charges from the supplier that Pitt will be required to pay. Please contact the applicable Procurement Specialist in Purchasing Services to discuss options before cancelling any purchase orders due to increased tariffs.
  • Even if you placed your order before the recent tariff increases, you should plan for an increased cost due to tariffs, which could more than double the cost of the purchase. MGL or Purchasing Services will contact you if your ordered item is moving through U.S. Customs and will require that you authorize payment of the tariffs. In that case, you will be required to provide a 32-digit account number to pay for the tariffs. Please ensure that you have available budgeted funds sufficient to cover the increased cost.

Additional information, including next steps for Purchasing Services:

  • Purchasing Services and MGL will be acting quickly when imports are received by U.S. Customs for orders when the University is the importer of record, paying the required tariffs to the federal government as well as customs broker fees to MGL. Delays by the University or MGL in working with, and paying, U.S. Customs might require the department placing the order to pay fees for storage or to return the item.
  • It is also important to note that, prior to the increase in tariffs, MGL would pay the fees, taxes, and tariffs to U.S. Customs on behalf of the University and then invoice Pitt. Due to the extraordinary increases, MGL is now requesting that Pitt immediately pay these costs upon delivery so that MGL can in turn pay U.S. Customs.
  • Depending upon the value of the items purchased and the amount of the tariffs, Purchasing Services will send informational emails as a courtesy to the appropriate department or RC management and business managers.

Purchasers should consider the following when making future or new purchase orders:

  • Before placing any orders, departments should consider the March announcement asking RCs to reduce nonessential, non-compensation expenses.
  • To avoid tariffs, attempt to purchase items manufactured in the U.S.
  • Many U.S.-based suppliers resell items manufactured outside of the U.S. or use components that are imported. Those suppliers are also experiencing tariffs and may increase prices as a result.
  • Some suppliers have reduced the period that quotes are valid since the tariffs have been fluctuating. Please take the valid quote period into account when placing orders and submitting requisitions to Purchasing Services.
  • If you must purchase from a foreign supplier, purchasers should discuss the equipment price and possible tariffs with the supplier as well as with your department management.
  • Purchasers need to scrutinize and question quotes with fees associated with tariffs as they may not all be reasonable or legitimate. If a fee associate with tariffs is included in the quote, ask the company to provide documentation to support passing along the tariff.
  • Effective 12/18/25: Fed Ex will only allow five (5) days for BSO customs clearance or freight will be returned. Your timely response to Mohawk Global with the requested information to clear your shipment is necessary. You need to respond to Mohawk Global within 48 hours or you are at risk of your package being returned.

De Minimis Changes Effective August 29th and Impact to The University of Pittsburgh

On July 30, 2025, the White House declared a national emergency and issued an executive order suspending de minimis duty-free treatment under 19 U.S.C 1321 for all countries, effective August 29, 2025. This action builds on earlier executive orders targeting China and Hong Kong and now extends to all nations. The updated order also amends prior executive orders related to Mexico, Canada, China, and Hong Kong to formally remove de minimis eligibility.

What does this change mean for purchasers?

Under the de minimis exemption, small-value imports of $800 or less did not require a formal entry process at Customs. This meant that small carriers, such as UPS, DHL, and FedEx could clear your import valued at $800 or less through a quick, informal process that was not subject to duties and taxes. The new executive order suspending the de minimis exemption will now require all imports, regardless of value, to pay duties through a formal entry process.

What should purchasers do to prepare for this change?

  • Purchasers should follow the current process to contact our University-wide Customs Broker, Mohawk Global Logistics, for import assistance for international orders of any value.
  • For imports of goods valued at $800 or less that are not urgent and do not require an Other Government Agency (OGA) approval (for example, Food and Drug Administration or U.S. Fish and Wildlife Service), it is recommended that the supplier ship the goods via postal shipment instead of using a small parcel carrier.
    • Postal shipments will be subject to either:
      • The IEEPA reciprocal duty rate, or
      • A temporary flat fee per package (Flat-rate option expires after six months):
        • <16% tariff: $80
        • 16–25%: $160
        • 25%: $200
    • Note that certain countries are halting or delaying exports through their postal systems as they attempt to fully understand the U.S. changes to de minimis shipments.
  • For imports of goods valued at greater than $800, that are urgent, or that require OGA approval, suppliers may ship the goods via a small parcel carrier. For these instances, shipments will be subject to duties, taxes, and other fees which will be determined during the formal Customs clearance process. Mohawk Global Logistics makes these payments on behalf of the University and then includes the fees as pass-throughs on invoices.
  • You should be sure to discuss the import of your items and shipment options with your international supplier before placing a purchase order.

 How to contact Mohawk Global Logistics:

It is imperative that departments use the services of Mohawk Global Logistics for import support to ensure compliance with all federal laws and Executive Orders. Mohawk Global Logistics’ contact information can be found on the University-wide supplier page.

Questions?

We will continue to monitor how tariffs could impact purchases at the University and will share more information as we can. If you have questions related to this information, please contact Purchase, Pay & Travel Customer Service.