At 4 PM EDT on April 2, 2025, President Trump announced his reciprocal tariffs on all imports into the United States. Importantly, goods from Canada and Mexico were excluded from additional duties. Other announced rates include: United Kingdom (10%), EU (20%), China (34%), Vietnam (46%), Taiwan (32%), South Africa (30%), Japan (24%), India (26%), South Korea (25%), and Brazil (10%).
While the White House Fact Sheet and Executive Order have been released, official documents referenced in the Executive Order have yet to be published. Once those documents are published, more information regarding the scope of the exemptions noted below, and the application of these tariffs generally, will be available.
Regarding tariffs on Canadian and Mexican goods:
- The 10% baseline tariff that applies to ROW imports into the US, described below, does not apply to imports of products of Canada or Mexico.
- USMCA-originating goods imported from Canada and Mexico will continue to be exempt from the 25% IEEPA tariffs.
- The existing IEEPA 25% tariffs will continue to apply to products of Mexico and Canada that are not USMCA-originating, except for energy, energy resources, and potash which are subject to 10% IEEPA tariffs.
- If the existing IEEPA 25% tariffs on goods originating in Canada and Mexico are terminated or suspended, then USMCA-originating goods will continue to be exempt from any reciprocal tariffs imposed under the Executive Order, but a 12% tariff would apply to products of Canada or Mexico that are not USMCA-originating (except for energy, energy resources, and potash imports, which would not be subject to IEEPA or reciprocal tariffs).
ROW Reciprocal tariffs:
- A baseline 10% tariff applies to all imports (except Canada/Mexico) into the US as of April 5, 2025 at 12:01 a.m. EDT.
- The individualized reciprocal tariffs above 10% and outlined in the charts issued by the White House will apply to each listed country instead of the baseline 10% tariff, which will take effect at 12:01a.m. EDT on April 9.
- The reciprocal tariffs have no termination date.
- The reciprocal tariffs could increase, or decrease.
- Certain goods are not subject to the reciprocal tariffs (e.g. steel, aluminum and autos and auto parts subject to existing 232 tariffs, copper, semiconductors, pharmaceuticals, lumber, certain energy and critical minerals).
- Notably, the US has issued specific Executive Orders on these goods (e.g. steel, aluminum, autos and auto parts, copper, lumber), or has foreshadowed future Executive Orders on these goods (semiconductors, pharmaceuticals), with the exception of critical minerals and energy.
- The specific goods that will be exempt have yet to be released. We expect the list to be released in the coming days.
- In order to determine whether tariffs apply to imports of these goods from a specific country, one must reference the applicable Executive Order.
- Goods loaded onto a vessel at the port of loading and in transit on the final mode of transit before 12:01 a.m. EDT on April 5, 2025, and entered for consumption or withdrawn from warehouse for consumption after 12:01 a.m. EDT on April 5, 2025 will not be subject to the additional tariffs.
