Tariff Update

President Trump issued an executive order April 2 imposing additional tariffs at varying rates on imports from all countries. These tariffs will take effect within the next few days.Tariffs
The U.S. will levy an additional 10 percent tariff on all imports from all trading partners, effective with respect to goods entered or withdrawn from warehouse for consumption on or after 12:01 a.m. EDT on April 5. However, this tariff will not apply to goods that are (1) loaded onto a vessel at the port of loading and in transit on the final mode of transit before that time and (2) entered or withdrawn from warehouse for consumption after that time.

However, several dozen countries (complete list here) will be subject to additional tariffs of 11-50 percent, including the following:

- 49 percent for Cambodia
- 48 percent for Laos
- 46 percent for Vietnam
- 37 percent for Bangladesh
- 34 percent for China
- 32 percent for Taiwan
- 32 percent for Indonesia
- 32 percent for Switzerland
- 31 percent for South Africa
- 27 percent for India
- 26 percent for South Korea
- 24 percent for Japan
- 20 percent for the European Union

These higher tariffs will be effective with respect to goods entered or withdrawn from warehouse for consumption on or after 12:01 a.m. EDT on April 9. However, they will not apply to goods that are (1) loaded onto a vessel at the port of loading and in transit on the final mode of transit before that time and 92) entered or withdrawn from the warehouse for consumption after that time. The additional tariffs will be assessed in addition to any other applicable duties, fees, taxes, exactions, or charges. They will remain in place until the president determines that “the underlying conditions described [in the EO] are satisfied, resolved, or mitigated.”According to the EO, the president may increase or expand in scope the additional tariffs if (1) they are deemed not to be effective in resolving the emergency conditions (e.g., a continued increase in the overall U.S. trade deficit or “the recent expansion of non-reciprocal trade arrangements by U.S. trading partners” in a manner that threatens U.S. economic and national security interests), (2) any trading partner retaliates through import duties on U.S. goods or other measures, or (3) U.S. manufacturing capacity and output continues to worsen. On the other hand, the tariffs may be decreased or limited in scope if any trading partner “takes significant steps to remedy non-reciprocal trade arrangements and align sufficiently with the United States on economic and national security matters.”Goods from Canada and Mexico are exempt from reciprocal tariffs until such time as the IEEPA Border tariffs are terminated or suspended, at which time only USMCA qualifying goods will be exempt from these tariffs, and non-USMCA goods will be subject to a 12% reciprocal tariff.

Exclusions
The EO specifies that the additional tariffs will apply only to the non-U.S. content of a subject article provided that at least 20 percent of the article’s value is U.S.-originating. “U.S. content” refers to the value of an article attributable to the components produced entirely, or substantially transformed in, the U.S. The EO authorizes U.S. Customs and Border Protection to require the collection of such information and documentation regarding an imported article, including with the entry filing, as is necessary to enable it to ascertain and verify (1) the value of the U.S. content of an article and (2) whether an article is substantially finished in the U.S.The EO excludes the following from the additional tariffs.
- all articles encompassed by 50 USC 1702(b) (e.g., communications, donations, and informational materials)
- all articles and derivatives of steel and aluminum already subject to Section 232 duties
- all automobiles and automotive parts already subject to Section 232 duties
- copper, pharmaceuticals, semiconductors, lumber articles, certain critical minerals, and energy and energy products
- all articles from a trading partner subject to Column 2 duty rates
- all articles that may become subject to duties pursuant to future Section 232 actions De Minimis

The EO states that duty-free de minimis treatment will remain available for all goods subject to the increased tariffs (except those imported from China) until the commerce secretary notifies the president that adequate systems are in place to “fully and expeditiously process and collect” revenue from these tariffs for articles otherwise eligible for de minimis treatment.

Authority
The tariff increases are being imposed under the International Emergency Economic Powers Act following the EO’s declaration of a national emergency with respect to the “unusual and extraordinary threat” to U.S. national security posed by “underlying conditions, including a lack of reciprocity in our bilateral trade relationships, disparate tariff rates and non-tariff barriers, and U.S. trading partners’ economic policies that suppress domestic wages and consumption, as indicated by large and persistent annual U.S. goods trade deficits.” According to the EO, these deficits reflect “asymmetries in trade relationships” that (1) have contributed to the atrophy of domestic production capacity, especially that of the U.S. manufacturing and defense-industrial base, and (2) impact U.S. producers’ ability to export “and, consequentially, their incentive to produce.” 

(Blog re-post compliments of Sandler, Travis & Rosenberg, P.A.)

_____

Update 4/4/2025

We would like to inform you of some preliminary guidelines regarding upcoming tariff changes that may impact imported goods, based on what we know from our customs team's investigation. At this time, no formal messages have been issued by U.S. Customs and Border Protection, and we are sharing this information to help you begin assessing potential implications for your supply chain.

Timing of Implementation

• General 10% Tariff Implementation (April 5, 2025)
  • The 10% additional tariff will apply to all imported goods entering the US starting at 12:01 a.m. (EDT) on April 5, 2025.
  • This tariff applies to goods that are either entered for consumption (formally brought into the US market) or withdrawn from a warehouse for consumption on or after this date.
  • However, there is an exception: Goods that were already loaded onto a vessel at the port of origin and were in transit as of 12:01 a.m. on April 5, 2025, will not be subject to the additional tariff, even if they arrive and clear customs after this date.
• Country-Specific Tariff Implementation (April 9, 2025)
  • The separate set of country-specific tariffs (as detailed in Annex I of the order) will take effect at 12:01 a.m. (EDT) on April 9, 2025.
  • These country-specific tariffs apply only to goods from specific trading partners listed in Annex I.
  • Like the general 10% tariff, these new duties apply to goods that are either entered for consumption or withdrawn from a warehouse for consumption on or after April 9, 2025.
  • Again, there is an exception: Goods that were already loaded onto a vessel and were in transit before 12:01 a.m. on April 9, 2025, will not be subject to the country-specific tariff, even if they arrive and clear customs after this date.

Goods Exempt From the New Tariffs

1. National Security Exemptions: Goods covered under 50 USC. 1702(b), which generally includes essential humanitarian items such as food, medicine, and medical devices.
2. Steel and Aluminum Products: Any steel or aluminum products (and their derivatives) that are already subject to Section 232 tariffs under previous Presidential proclamations, including:
   • Proclamation 9704 (2018): Aluminum tariffs
   • Proclamation 9705 (2018): Steel tariffs
   • Proclamation 9980 (2020): Derivative steel and aluminum tariffs
   • Proclamation 10895 (2025): Updated aluminum tariffs
   • Proclamation 10896 (2025): Updated steel tariffs
3. Automobiles and Auto Parts: Any automobiles and automotive parts that are already subject to Section 232 tariffs under Proclamation 10908 (2025).
4. Future Section 232 Actions: Any goods that may be subjected to future Section 232 tariffs, meaning additional exemptions could apply if new trade restrictions are enacted under national security grounds.
5. Specific Product Exemptions: Various goods explicitly exempted in Annex II of the Reciprocal Tariffs E.O., including:
   • Copper;
   • Pharmaceuticals;
   • Semiconductors;
   • Lumber articles;
   • Certain critical minerals; and
   • Energy and energy products, including electricity (note that electricity was already exempt from merchandise entry requirements, including paying import duties and fees).
6. Goods Subject to Column 2 Tariffs: Any goods imported from a country that falls under Column 2 of the Harmonized Tariff Schedule of the United States (HTSUS), which applies to nations without normal trade relations with the US (i.e., Cuba, North Korea, Russia, and Belarus).

US Content Limitation

1. Tariffs Apply Only to Non-US Content: If an imported product contains at least 20% US content, the new tariffs will apply only to the non-US portion of the product’s value. This means that products with significant US components or processing will have a lower effective tariff burden.
2. Definition of US Content: “US content” includes materials or components that are: (1) entirely produced in the United States, or (2) substantially transformed in the United States, meaning they undergo a significant change in form, function, or character within the US.

We are actively monitoring the situation and will provide updates as soon as U.S. Customs releases official guidance or new regulatory messages. In the meantime, if you have questions about how these guidelines may impact specific products or shipments, please feel free to contact us directly.

We will continue to update this page as more information becomes available.