President Trump announced the implementation of Reciprocal Tariffs this afternoon. For detailed information review the Executive Order and the White House Fact Sheet.
A 10% additional duty will be assessed on all goods from all countries effective April 5, 2025. Certain countries will have their own individual tariffs effective April 9, 2025. CNBC has published an article with a full list of countries, the current tariffs charged to the United States, and the United States Reciprocal Tariffs, including the following: Bangladesh 37%, Cambodia 49%, China 34%, EU 20%, India 26%, Indonesia 32%, Israel 17%, Japan24%, Jordan 20%, Malaysia 24%, Nicaragua 18%, Pakistan 29%, Philippines 17%, Serbia 37%, South Africa 30%, South Korea 25%, Sri Lanka 44%, Switzerland 31%, Taiwan 32%, Thailand 36%, Vietnam 46%,
From the Executive Order:
“Sec. 2. Reciprocal Tariff Policy. It is the policy of the United States to rebalance global trade flows by imposing an additional ad valorem duty on all imports from all trading partners except as otherwise provided herein. The additional ad valorem duty on all imports from all trading partners shall start at 10 percent and shortly thereafter, the additional ad valorem duty shall increase for trading partners enumerated in Annex I to this order at the rates set forth in Annex I to this order. These additional ad valorem duties shall apply until such time as I determine that the underlying conditions described above are satisfied, resolved, or mitigated”.
“Sec. 3. Implementation. (a) Except as otherwise provided in this order, all articles imported into the customs territory of the United States shall be, consistent with law, subject to an additional ad valorem rate of duty of 10 percent. Such rates of duty shall apply with respect to goods entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. eastern daylight time on April 5, 2025, except that goods loaded onto a vessel at the port of loading and in transit on the final mode of transit before 12:01 a.m. eastern daylight time on April 5, 2025, and entered for consumption or withdrawn from warehouse for consumption after 12:01 a.m. eastern daylight time on April 5, 2025, shall not be subject to such additional duty”.
“Sec. 3. (e) Any ad valorem rate of duty on articles imported from Canada or Mexico under the terms of this order shall not apply in addition to the ad valorem rate of duty specified by the existing orders described in subsection (d) of this section. If such orders identified in subsection (d) of this section are terminated or suspended, all items of Canada and Mexico that qualify as originating under USMCA shall not be subject to an additional ad valorem rate of duty, while articles not qualifying as originating under USMCA shall be subject to an ad valorem rate of duty of 12 percent.
From the Fact Sheet:
“Some goods will not be subject to the Reciprocal Tariff. These include: (1) articles subject to 50 USC 1702(b); (2) steel/aluminum articles and autos/auto parts already subject to Section 232 tariffs; (3) copper, pharmaceuticals, semiconductors, and lumber articles; (4) all articles that may become subject to future Section 232 tariffs; (5) bullion; and (6) energy and other certain minerals that are not available in the United States”.
“For Canada and Mexico, the existing fentanyl/migration IEEPA orders remain in effect, and are unaffected by this order. This means USMCA compliant goods will continue to see a 0% tariff, non-USMCA compliant goods will see a 25% tariff, and non-USMCA compliant energy and potash will see a 10% tariff. In the event the existing fentanyl/migration IEEPA orders are terminated, USMCA compliant goods would continue to receive preferential treatment, while non-USMCA compliant goods would be subject to a 12% reciprocal tariff”.
We will provide additional updates as more information becomes available and when U.S. Customs provides implementation instructions. In the meantime, feel free to contact our Customs Team if you have questions or need assistance.
