TLMI addresses imposition of tariff rates across countries

TLMI has addressed an executive order signed by President Trump, imposing reciprocal tariffs on most nations. The new tariffs are being imposed under the International Emergency Economic Powers Act of 1977 (IEEPA).

Of note, the reciprocal tariffs do not apply to Canada or Mexico, or those goods currently covered or scheduled to be covered by sector-specific tariffs under Section 232. More information on that is below.

According to the Executive Order, beginning April 5, 2025, a baseline 10 percent tariff will apply to imports of most goods from almost all countries. Additionally, effective April 9, 50 countries that maintain large trade surpluses with the US – and that impose various tariff and non-tariff barriers on US exports – will be subject to even higher rates, in some cases up to 50 percent. The country list and specific tariff rate may be found here.

The tariffs will not apply to goods loaded onto a vessel at the port of loading and in transit on the final mode of transit prior to the effective date and entered for consumption or withdrawn from the warehouse for consumption after the effective date.

The highest tariff rates (scheduled to take effect April 9) were assigned to countries with the largest trade surpluses with the US. They include China (54 percent, which includes earlier tariffs), all countries within the European Union (20 percent), Vietnam (46 percent), Taiwan (32 percent), Japan (24 percent), India (26 percent) and South Korea (25 percent).

The reciprocal tariffs will not apply to certain goods, primarily those goods already subject to (or likely to be soon subjected to) sectoral tariffs. These include steel, aluminum articles and their derivatives, as well as automobiles and automobile parts. Also excluded are energy and energy products and certain critical minerals, as well as a limited list of IEEPA-exempt goods. Annex II includes the complete list of exempted products and goods.

The reciprocal tariffs are in addition to certain other applicable duties, including those required by antidumping and/or countervailing duty orders, Section 301, and normal customs duties.

The reciprocal tariffs outlined on April 2 will not apply to Canada and Mexico. In addition, goods entering the US that qualify under the current USMCA agreement will remain exempt from tariffs.

The reciprocal tariffs will remain in effect until President Trump determines ‘that the threat posed by the trade deficit and underlying nonreciprocal treatment is satisfied, resolved, or mitigated’. The president may also increase or decrease the tariff rates depending upon actions taken by foreign governments. The Administration has left open the prospect of negotiation with individual trading countries and revisions to each country’s specific rate.

TLMI will continue to follow the US-imposed tariff rates, retaliatory tariffs from other countries for US exports (anticipated, but not yet finalized), and other changes moving forward.