HS Code 6403 Tariff: China to United States

Current tariff rates for footwear with outer soles of rubber, plastics, leather or composition leather and uppers of leather: (HS code 6403) imported from China to the United States.

Hedge tariff risk: Trade tariff prediction markets on Ballast Markets to lock in costs and protect margins against future tariff changes.

Current Tariff Rate (2025)

| Component | Rate | Details | |-----------|------|---------| | MFN (Column 1) | 0% | Most-Favored Nation base rate | | Section 301 | 7.5% | China trade actions (USTR) |

| Total ETR | 7.5% | Effective Tariff Rate |

Trade Volume (2023)

• Annual Imports: $16.25B (2023)
• HS Code: 6403
• Origin: China
• Destination: United States

Tariff History

• 2018-07-06: Section 301 tariff imposed (7.5%)

Landed Cost Impact

Example Calculation for HS 6403 from China:

| Cost Component | Amount | % of Total | |----------------|--------|------------| | FOB Price | $1000 | 74% | | Ocean Freight | $150 | 11% | | Insurance | $15 | 1% | | Customs Duties (7.5%) | $75 | 6% | | Inland Transport | $120 | 9% | | Total Landed Cost | $1360 | 100% |

Tariff Cost Impact: Without tariffs, landed cost would be $1285 → tariffs add $75 (6% increase).

For $16.25B annual imports, total tariff costs: $1.22B/year.

Comparison to Alternative Sources

| Country | Typical Tariff | Price Advantage | |---------|---------------|-----------------| | China | 7.5% | Baseline | | Mexico | 0% (USMCA) | -7.5% tariff cost | | Canada | 0% (USMCA) | -7.5% tariff cost | | China | 7.5% | -7.5% vs China | | Vietnam | 0% MFN | -7.5% vs China |

Note: Actual tariff rates vary by specific product classification and country-specific trade agreements. Verify with customs broker.

Hedging Strategies

1. Tariff Prediction Markets

Problem: Tariff rates can change with 30-90 days notice via USTR actions.

Solution: Tariff prediction markets allow you to hedge:

Example:

• Exposure: $10M annual HS 6403 imports from China
• Current tariff cost: $0.8M (7.5%)
• Risk: Tariffs increase to 32.5% → additional cost
• Hedge: Buy "US-China Tariff > 17.5% by Q4 2025" position

Learn more: How to Hedge Tariff Risk

2. Sourcing Diversification

Strategy: Split sourcing between China and USMCA countries to hedge tariff volatility.

Example Mix:

• 60% from China (7.5% tariff)
• 40% from Mexico (0% tariff via USMCA)
• Blended rate: 5% (vs. 7.5% all-China)
• Annual savings: $0.5B

3. Pre-Tariff Stockpiling

If tariff increase expected:

• Order 3-6 months inventory before effective date
• Cost: Increased working capital (inventory holding)
• Benefit: Lock in current 7.5% rate vs. potential 32.5%

Related Tariff Pages

• HS Code 6403 Overview - Product classification guide
• China-US Trade Profile - Bilateral trade overview
• Section 301 Tariffs Explained - China trade actions
• USMCA Qualification - 0% tariff requirements

Sources

• U.S. International Trade Commission (USITC) HTS Database (accessed 2025-11-04)
• USTR Section 301/232 Tariff Lists
• U.S. Census Bureau International Trade Data (2023)

Risk Disclosure

This content is for informational and educational purposes only and should not be construed as financial, legal, or investment advice. Tariff rates are subject to change based on government policy and trade negotiations. Verify current rates with U.S. Customs and Border Protection (CBP) or qualified customs brokers before making sourcing decisions. Prediction markets involve risk of loss.

Disclaimer

Ballast Markets provides this content as a free educational resource for the global trade community. Tariff data is sourced from USITC and USTR but may contain errors or be outdated. For compliance purposes, always verify rates with official sources. Trade statistics from Census Bureau may have reporting delays.

Last updated: 2025-11-04