How sugar confections US importers impact by China tariffs? HTS 1704
- emails419
- Jul 7
- 2 min read
Updated: 6 hours ago
HTS 1704 refers to “sugar confectionery (including white chocolate), not containing cocoa.” This category includes candies, gummies, sugar-coated treats, etc.
For more information please visit: https://www.agfus.com/tariffs
Here's how U.S. importers under this code are affected by tariffs on Chinese imports:
1. Tariff Rates on Chinese Confections
Base U.S. tariffs on Chinese goods under Section 301 remain in place:
25% (List 1–3) or up to 100% for goods under List 4 assessments en.wikipedia.org+4china-briefing.com+4reuters.com+4.
In 2025, additional “reciprocal” tariffs now add 10% baseline + 20% fentanyl tariff, bringing the total tariff on Chinese goods to ~55% china-briefing.com+1reuters.com+1.
U.S. Customs rulings confirm that HTS 1704.90. lines from China are subject* to these additional tariffs—e.g., gummy candies in a tin from China facing standard + retaliatory duties flexport.com+3customsmobile.com+3hts.usitc.gov+3.
2. Impact on U.S. Importers
Effect | Description |
🚨 Cost spike | With ~55% total tariff applied, importing sugar confectionery from China becomes extremely cost-prohibitive. |
Supplier shift | U.S. importers under HTS 1704 are forced to pivot—sourcing from tariff-free countries like Mexico, Canada, or EU—to avoid punitive rates. |
Trade volume down | Although sugar confectionery imports under 1704 totaled around $165 million/mo in 2020 china-briefing.com+6datamyne.com+6customsmobile.com+6trendeconomy.com+1customsmobile.com+1, tariffs likely suppressed Chinese-origin volumes in 2024–25. |
Inventory & sourcing risk | Importers holding long-term contracts with Chinese suppliers face renegotiation needs, higher landed costs, or switching to domestic/hybrid sourcing. |
Market pricing & innovation | Higher import costs lead to increased retail prices and reduced margins; some importers may halt introductions of new products due to uncertain tariff environment. |
3. Mitigation Strategies
Diversify supply — shift sourcing from non-Chinese countries (e.g., Mexico, Canada, EU) to maintain HTS 1704 volumes at manageable tariff levels.
Advance planning/inventory stockpiling — take delivery before tariff hikes if timing permits.
Seek exclusions/waivers — applications to USTR for product-specific exemptions; success is limited, but possible.
Negotiate pricing — downstream partner agreements to absorb some tariff increases or adjust product bundle strategies.
Summary
U.S. importers classified under HTS 1704 importing from China face ≈55% tariffs in 2025—combining Section 301, fentanyl, and reciprocal duties. These high duties make Chinese-sourced sugar confectionery uneconomical, prompting supply diversification, cost absorption, and strategic sourcing shifts to protect margins and product continuity.
For more information please visit: https://www.agfus.com/tariffs.