On April 2, 2025, President Trump signed an executive order announcing the imposition of a blanket 10% tariff on imported products from all countries. Additionally, Annex I to the executive order sets forth separate increased country-specific reciprocal tariff rates for countries that are considered “worst offenders” and are the largest contributors to the U.S. trade deficit. Countries that are subject to a reciprocal tariff shall not also be subject to the blanket 10% tariff. The U.S. will impose reciprocal tariffs on products originating from those countries at roughly half the rate those countries impose on U.S. products. USMCA-compliant goods from Canada and Mexico are exempt from both the blanket 10% tariffs and the country-specific reciprocal tariffs.
The 10% tariff shall apply to products entered for consumption on or after 12:01 a.m. eastern daylight time on April 5, 2025. The reciprocal tariffs shall apply to all products originating from countries enumerated in Annex I as of 12:01 a.m. eastern daylight time on April 9, 2025.
An exception to the 10% tariff applies to products that are 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on the final mode of transit before 12:01 a.m. eastern daylight time on April 5, 2025, and entered for consumption or withdrawn from warehouse for consumption after 12:01 eastern daylight time on April 5, 2025. Similarly, an exception to the reciprocal tariffs applies to products that are 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on the final mode of transit before 12:01 a.m. eastern daylight time on April 9, 2025, and entered for consumption or withdrawn from warehouse for consumption after 12:01 eastern daylight time on April 9, 2025.
Additional products that are set forth in Annex II and shall not be subject to the tariffs under the executive order 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.
These tariffs shall remain in effect until such a time as President Trump determines that the threat posed by the trade deficit and underlying nonreciprocal treatment is satisfied, resolved, or mitigated.
Should you have any questions on how these tariffs will impact your business, please click the button below to subscribe to our newsletters and contact one of the trade professionals listed here.