Transatlantic Trade Monitor: Facts You Need Now | United States Tariff Alert

On April 2, 2025, invoking his authority under the International Emergency Economic Powers Act of 1977 (IEEPA), President Donald Trump announced reciprocal tariffs against all countries. Certain countries with which the United States has the largest trade deficits will be subject to higher, individualized reciprocal tariffs.

Prepared by Clinton Yu, Tayo Osuntogun, and Luis Arandia, Barnes & Thornburg’s International Trade Practice Group attorneys: 

Below are the pertinent details from the Executive Order and White House Fact Sheet.

• Effective April 5, 2025, an additional 10% tariff will be imposed on all imports from all countries.
• Effective April 9, 2025, individualized reciprocal tariff rates higher than 10% will be imposed on certain countries enumerated in an Annex I (not yet published). Below are a few examples of the additional tariff rate on major U.S. trading partners:
  • China: 34%
  • European Union: 20%
  • Vietnam: 46%
  • Japan: 24%
  • South Korea: 25%
  • Taiwan: 32%
  • India: 26%
  • United Kingdom: 10%
• In-transit Exemption: Goods loaded onto a vessel at the port of loading and in transit on the final mode of transit before the above effective dates will not be subject to such additional duty.
• Goods Not Subject to Reciprocal Tariffs: The following goods will not be subject to additional reciprocal tariffs.
  • Steel and aluminum articles subject to Section 232 tariffs;
  • Autos and auto parts subject to Section 232 tariffs;
  • Copper, pharmaceuticals, semiconductors, and lumber articles;
  • All articles that may become subject to future Section 232 tariffs;
  • Energy, energy products, bullion, and certain critical minerals that are not available in the United States.
• Canada and Mexico: Goods from Canada and Mexico are not subject to reciprocal tariffs, but continue to be subject to 25% under the existing IEEPA tariff actions. Goods that qualify as originating under the U.S.-Mexico-Canada Agreement (USMCA) continue to be exempt from the 25% tariff. The Executive Order states that the 25% tariff rate for Canada and Mexico could decrease to 12% at a future date.
• U.S. Content Carve-Out: The reciprocal tariffs will not apply to U.S. content of an imported article if the subject article has least 20% U.S. content.
• Importers cannot use Foreign Trade Zones (FTZ) to avoid reciprocal duties.
• The Executive Order and Fact Sheet are silent on whether drawback duty refunds are available. All recent tariff actions expressly excluded the use of drawback refunds.
• Other than China-origin goods, imported goods qualifying for de minimis treatment (i.e. commercial value lower than $800) are not subject to reciprocal tariffs for now.

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