May 20, 2025
UPDATE: June 4, 2025
Click for more details from the White House
UPDATE: June 2, 2025
Country/Region | Baseline Tariff (%) | Additional Reciprocal Tariff (%) | Total Expected Duty Rate (%) |
|---|---|---|---|
EU | 10 | 20 | 30 |
India | 10 | 25 | 35 |
Brazil | 10 | 15 | 25 |
South Korea | 10 | 20 | 30 |
China (after Aug 12th) | 10 | 135 | 145 |
Unless a new Executive Order or Agreement is put in place by July 9th, 2025.
On May 12, 2025, President Trump signed an executive order to modify reciprocal tariff rates as part of ongoing discussions with China. Modifying Reciprocal Tariff Rates to Reflect Discussions with the People's Republic of China – The White House
The effective order is set to become effective on May 14, 2025, on or after 12:01 a.m. eastern daylight time. The Executive Order essentially reduces tariffs to 10% from goods originating from China as opposed to attaching the significantly increased retaliatory tariff. This will make essentially reduce tariffs on China originating goods to 30%; section 301 and 232 tariffs are still in place.
This executive order is a direct result of continued negotiations held last week in Geneva Switzerland between the US and China. Following the meeting the US and China announced a 90-day pause in the ongoing trade war which will provide temporary relief and opportunities for importers and exporters to adjust their global supply chain strategies. The Council of Supply Chain Management Professionals (CSMS) stated…"The mutual reduction in tariffs between the US and China provides much-needed short-term relief and reopens critical lanes of trade. While the 90-day window is temporary, it signals positive momentum toward more sustainable trade practices.”
UPDATE: May 5th, 2025
Effective May 3rd, 2025, a section 232 automobile parts tariff is assessed against non-U.S.-originating auto parts imported into the U.S. In addition, duty rates have been modified ...by reducing duties assessed on automobile parts accounting for 15 percent of the value of an automobile assembled in the U.S. for 1 year and equivalent to 10 percent of that value for an additional year as follows...
see Amendments to Adjusting Imports of Automobile and Automobile Parts Into the United States for full details.
Section 301 tariffs (from the Trump 45 Administration, extended by the Biden 46 Administration)
Section 232 tariffs (amended by the Trump 47 Administration)
IEEPA Northern/Southern Borders and addressing the flow of illicit drugs
IEEPA Reciprocal tariffs
Adjustments to Automobile and Automotive Parts (April 29th, 2025)
Redefines "tariff stacking" on Automobiles and Automotive Parts and allows for "non-stacking," or applying multiple tariffs.
There are 5 instances where automobiles and automotive parts may fall under multiple tariffs:
A - Section 232 on Automobiles and Automotive Parts
B - IEEPA Northern Border
C - IEEPA Southern Border
D - Section 232 Aluminum and Derivatives
E - Section 232 Steel and Derivatives
The April 29th, 2025 "remedies" (Executive Order) allow for goods that fall under:
A - to be exempted from B, C, D, E
B or C - to be exempted from D, E
D is NOT exempt from E
E is NOT exempt from D
In ALL cases, Section 301 tariffs, general duty rates, IEEPA Fentanyl, and any Antidumping or Countervailing duties still apply.
It will take CBP a couple of days to catch up to this and create new HTS numbers and 'stacking' rules.
There is an additional AUTOMOBILE IMPORT ADJUSTMENT OFFSET announced on April 29th, 2025. It allows for Importers of parts of automobiles that will result in a final assembly of an automobile to request an annual Automobile Import Adjustment Offset. The process is currently NOT DEFINED by the Secretary of Commerce or the U.S. Trade Representative. When defined and implemented, importers will need to verify the duties and tariffs paid at the time of import. This will result in a different method/process of entering goods (Custom Entry Summary) for future identification and verification in the OFFSET program
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The official language from US Customs, based on Executive Order 14257, which has since been amended on 3 occasions, is found in Customs' Cargo Systems Messaging Service (CSMS publication #64701128 - Updated Guidance - Reciprocal Tariffs - Increase in Rate for China and Reversion of Other Country - Specific Rates, Effective April 10th, 2025.)
"Imported products of China, including products of Hong Kong and Macau (other than those that fall within the identified exception included in CSMS 64680374), entered for consumption or withdrawn from warehouse for consumption on or after 12:01 am ET on April 10th, 2025, are subject to the following HTSUS classification and additional ad valorem duty rate:
Note: For countries not named China, Hong Kong, or Macau, the same language applies with an additional ad valorem rate of 10%
Note: CBP will provide additional guidance to the trade community through the CSMS messages as appropriate.
Therefore, previous regulations have been superseded by the IEEPA action on Reciprocal tariffs. IEEPA is the acronym for the International Emergency Economic Powers Act (October 28th, 1977) [50 USC Chapter 35] that authorizes the President to initiate "regulation as he may prescribe, by means of instructions, licenses, or otherwise..." to investigate, regulate or prohibit a host of actions/transactions.
The President may suspend existing regulations and initiate new ones. That is what has taken place with the "bonded warehouse rules."
Tax Commission Announcement No.6 of 2025
The People's Republic of China will assess an increased tariff on goods originating from the United States from 84% (Tariff Commission Announcement No.5) to 125%.
UPDATE on April 10
Tariffs on goods originating from China now have an aggregate duty of 145% up from the previous 20%. This change follows an amendment to reciprocal tariffs and updated duties on low-value imports from the People's Republic of China. Read the full announcement from the White House.
Imported products from China, including products of Hong Kong and Macau, other than those that fall within the identified exceptions included in CSMS 64680374, entered for Consumption, or withdrawn from warehouse for consumption on or after 12:01 a.m. EDT on April 10, 2025, are subject to HTS classification 9903.01.63 and will be assessed an additional ad valorem rate of duty of 125%.
The country specific rates that became effective on April 9, 2025 are suspended, currently for 90 days. Imported products of any country, except for China, including products of Hong Kong and Macau, other than those that fall within the identified exceptions included in CSMS 64680374, entered for Consumption, or withdrawn from warehouse for consumption on or after 12:01 a.m. EDT on April 10, 2025, are subject to HTS classification 9903.01.25 and will be assessed an additional ad valorem rate of duty of 10%.
UPDATE April 9th
The reciprocal tariff on China is set to increase from 34% to 84% when it takes effect at 12:01 a.m. tonight, according to CBP in an emailed CSMS message. That reflects an additional 50% tariff announced by President Donald Trump in response to Chinese retaliatory tariffs.
The CSMS message says President Donald Trump signed an executive order on April 8 increasing the tariff. The order, “Amendment To Reciprocal Tariffs And Updated Duties As Applied To Low-value Imports From The People's Republic Of China,” hadn’t been released as of press time.
The Canadian Government has today released the list of automobiles subject to 25% tariffs (surtaxes) effective April 9, 2025. The surtax is imposed as follows:
April 9, 2025
Implementation of country-specific reciprocal tariffs.
Note: industry-specific tariffs have been excluded.
Note: The use of duty drawback is so far allowed.
April 7, 2025
April 5, 2025
Note: industry-specific tariffs have been excluded.
Note: The use of duty drawback is so far allowed.
April 3, 2025
April 2, 2025
Note: Since these tariffs invoke Presidential powers under IEEPA, there is no time limit on these tariffs.
View the pre-Federal Register Notice on Reciprocal Tariffs here.
Canada: 25% tariffs on Automobiles assembled in the United States.
China: 34% retaliatory tariffs.
April 1, 2025
The Customs Tariff Commission of the State Council issued an announcement to impose additional tariffs on all imports originating in the United States
April 4, 2025 Source: Office of the Customs Tariff Commission of the State Council
On April 2, 2025, the U.S. government announced the imposition of "reciprocal tariffs" on Chinese goods exported to the United States. The US move is not in line with international trade rules, seriously undermines China's legitimate and lawful rights and interests, and is a typical unilateral bullying practice, which not only harms the US itself, but also endangers global economic development and the stability of the production and supply chain.
In accordance with the Customs Law of the People's Republic of China, the Customs Law of the People's Republic of China, the Foreign Trade Law of the People's Republic of China and other laws and regulations and the basic principles of international law, with the approval of the State Council, the Customs Tariff Commission of the State Council issued an announcement that from 12:01 on April 10, 2025, an additional 34% tariff will be imposed on all imported goods originating in the United States. Before 12:01 on April 10, 2025, the goods have been shipped from the place of departure and imported from 12:01 on April 10, 2025 to 24:00 on May 13, 2025, the additional tariff will not be levied.
China urges the US to immediately lift unilateral tariffs and resolve trade differences through consultation on an equal, respectful and mutually beneficial basis.
Drawback will be available on recently announced reciprocal tariffs that take effect April 5 and April 9, CBP confirmed in an emailed CSMS message providing guidance on the tariffs. “Drawback is available with respect to the additional duties imposed pursuant to the Executive Order,” the CSMS message said.
The EU is talking about a retaliation which could amount to Euro.400 billion under the EU's Anti-Coercion Instrument, however, several states are not aligned with this, it has been said that the consumer will be hit hard.
The European Commission will publish a final list of US products to be targeted in response to the steel and aluminum tariffs tonight and member states will vote on that list on Wednesday.
Today the UK government is announcing the end of Globalism and the re-direction of trade with other countries like British Commonwealth states.
Ursula von der Leyen's offer to President Trump to drop all tariffs on all bilateral trading industrial goods on a zero for zero basis has been rejected, meaning that the EU will not avoid 20% tariffs being imposed by the US on Wednesday. Reuters reporting a proposed counter-tariff of 25% on a range of US goods expected on May 16 and then further imposition later this year. Bourbon, dairy and wine have been removed from the original list, meaning that the proposed 50% against bourbon will not go ahead.
UPDATE: April 2nd, 2025
On April 2, 2025, President Trump signed an Executive Order and issued a Fact Sheet declaring a national emergency arising from conditions reflected in large and persistent annual U.S. goods trade deficits. As a result, a universal 10% tariff will be imposed on all imports from ALL countries, effective 12:01 a.m. EDT on April 5, 2025.
Additional country-specific tariffs as outlined in Annex 1, will face higher, country-specific ad valorem rates. Country-specific tariffs are in effect on April 9, 2025:
The following goods that are listed in Annex II are exempt from the additional tariffs in accordance with the executive order (see Annex II of the Executive Order for the full list):
Canada and Mexico Remain Unchanged
Tariff Increases on Automobiles and automobile parts
On 04/02/25 tariff increases at 25% became effective on automobiles and automobile parts imported into the United States. Fact Sheet: President Donald J. Trump Adjusts Imports of Automobiles and Automobile Parts into the United States. The tariffs are targeted to increase US domestic manufacturing.
March 26th, 2025
On 03/26/25 from the Oval Office, President Trump stated that he will assess 25% tariff on vehicles and auto parts imported into the United States. The tariffs are set to go in effect on April 2, 2025. The tariffs are targeted to increase US domestic manufacturing. We will post the President's executive order along with US Customs directions as soon as the information is available.
March 20th, 2025
On March 20, Olof Gill, spokesperson for the European Commission announced the first wave of retaliatory tariffs scheduled to be effective against the US on April 1st will be delayed until mid-April.
The delay will give the EU time to align two sets of retaliatory tariffs actions and allows the commission to consult with EU member states "on both lists simultaneously". Gill also stated that the delay will give the Commission more time to negotiate with the Trump administration.
The second set of tariffs could see rate hikes on a 99-page list of American exports, including agricultural goods, meats and poultry, alcohol, dairy products, specific aluminum and steel products, household goods, e-cigarettes, motorcycles, wooden products and more. The commission is accepting public comments on the duties until March 26.
March 17, 2025
March 7th, 2025
On March 6, President Trump granted an exemption for goods covered by the United States-Mexico-Canada Agreement (USMCA) from the recent tariff increases which became effective on March 4. The exemption is scheduled to conclude on April 2, 2025. This decision was made to minimize disruption to the automotive industry and other sectors that rely on the USMCA. A fact sheet on the tariff exemption has been published online.
UPDATE March 5th
Automotive Industry Gets One Month Reprieve
On March 4, President Donald Trump imposed 25% tariffs on imports from Canada and Mexico which significantly impacted the U.S. automotive industry. On March 5, the White House granted a one-month exemption for U.S. automakers, including Ford, General Motors, and Stellantis.
The automotive industry is heavily integrated with Canadian and Mexican manufacturers, with components crossing the borders multiple times during production. As expected, introducing these tariffs has created uncertainty, leading companies to reassess their supply chains and consider shifting production to mitigate potential costs.
It is likely that more tariffs changes will come. Leading investment companies have reconciled the new tariff hikes to the tariffs imposed under President Trump’s first administration and forecast spending to accelerate to avoid the risk of purchasing inventory after tariffs have increased the purchase price.
Tariff increases between the US, Canada, and Mexico can lead to border crossing delays and additional logistics costs since Canadian crude has faced a 10% tariff increase and is a heavy grade required by US refiners. Financial advisers believe industries have an array of ways to address price increases including currency fluctuations, incentivize suppliers to accept lower profit margins, alternative sourcing, and governmental efforts to stimulate domestic manufacturing.
UPDATE March 4th
On March 4th, China and Canada announced new retaliatory trade restrictions against the U.S. In addition, Mexico announced it is planning to soon release its own tariff countermeasures, all following the tariff increases set out in executive orders from the Trump administration early last month.
China
Beijing said it will levy a 15% tariff on U.S. chicken, wheat, corn and cotton, as well as a 10% tariff on sorghum, soybeans, pork, beef, aquatic products, fruits, vegetables and dairy products. China’s finance ministry said the measures, effective March 10, are a direct response to the Trump administration’s decision to use tariffs to address fentanyl trade
Canada
Canada announced a new 25% tariff that it said will target $30 billion worth of imported goods from the U.S. The duties, effective March 4, apply to hundreds of tariff lines, including certain agricultural products; meats, poultry and fish; timber; rubber goods; beauty products; tobacco; clothes; hand tools; home appliances; and a range of other commercial goods. Prime Minister, Trudeau added that the country will impose 25% tariffs on an additional $125 billion worth of American products in 21 days.
Mexico
Mexican President Claudia Sheinbaum said the country is also planning to issue retaliatory measures against the U.S., which will be revealed in the coming days.
Please note: March 12, 2025
• 25% Global Steel and Aluminum Tariffs: Tariffs will take effect with no country or product exclusions announced so far.
• Outlook: Potential for foreign retaliation in response to these tariffs.
UPDATE 4th March, 2025
Effective, 12:01 March 4, 2025, President Trump levied new tariffs on its three largest trading partners:
The tariff increases followed executive orders signed by President Trump last month. The tariffs run the risk of unleashing a damaging trade war. Trade wars were also a feature of the Trump Administration’s first term. But his latest tariffs on Canada, Mexico and China, may broaden the scale of disruptions. CBP has released Federal Register notices to be published on the Canada and Mexico tariffs. President Trump also signed an Executive Order today imposing additional 10% tariffs on China. China tariffs are now stated at 20%.
China: Moments after Mr. Trump’s tariffs went into effect, China’s finance ministry placed 15 percent tariffs on imports of chicken, wheat, corn and cotton from the United States and 10 percent tariffs on imports of “sorghum, soybeans, pork, beef, aquatic products, fruits, vegetables, and dairy products,” and 10 percent tariffs on imports of liquefied natural gas, coal, farm machinery and other products. It also placed restrictions on the export of certain critical minerals, many of which are used in the production of high-tech products. Chinese market regulators said last month that they had begun an antimonopoly investigation into Google.
Canada immediately imposed 25 percent tariffs on $30 billion worth of goods, but it did not specify which products would be affected. Justin Trudeau, the Canadian prime minister, said in a statement that the tariffs would expand to $125 billion of American goods in 21 days.“We don’t want to be here,” Mr. Trudeau said last month of the tariffs. “We didn’t ask for this.”
President Claudia Sheinbaum of Mexico is expected to address the issue at a news conference on Tuesday morning. Mexico is expected to issue retaliatory tariffs.
Need International Trade Advice? Check out our Trade Advisory Services and get in touch with our experts.
UPDATE 5th February 2025
Please see below information from the latest bulletin from U.S. Customs:
Warehouse and Consumption Entries
"Effective with respect to goods that are the product of China and Hong Kong entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. Eastern Standard Time on February 4, 2025, the following HTSUS classifications and additional duty rates apply:
9903.01.20: All imports of articles that are products of China and Hong Kong, other than products classifiable under headings 9903.01.21, 9903.01.22, and 9903.01.23, and other than products for personal use included in accompanied baggage of persons arriving in the United States - an additional ad valorem rate of duty of 10%."
Foreign Trade Zone
"Articles that are products of China and Hong Kong, excluding those encompassed by 50 U.S.C. 1702(b), except those that are eligible for admission to a foreign trade zone under “domestic status” as defined in 19 CFR 146.43, and are admitted into a United States foreign trade zone on or after 12:01 a.m. eastern standard time on February 4, 2025, must be admitted as “privileged foreign status” as defined in 19 CFR 146.41. Such articles will be subject, upon entry for consumption, to the duties imposed by this order and the rates of duty related to the classification under the applicable HTSUS subheading in effect at the time of admission into the United States foreign trade zone."
Drawback
"No drawback is available with respect to the additional duties imposed pursuant to the Executive Order, as implemented in the Federal Register Notice."
De Minimis
Pursuant to the Executive Order, and as implemented in the Federal Register Notice, certain products of China and Hong Kong are no longer eligible for the administrative exemption from duty and certain tax at 19 U.S.C. § 1321(a)(2)(C), and are subject to additional ad valorem rates of duty. Effective February 4, 2025, such goods may not receive so-called “de minimis” clearance. The "De minimis" clearance (entry type 89) that is effectively suspended directly applies to goods valued at $800 or less which were allowed to be imported duty and tax free. Requests for de minimis entry and clearance for ineligible shipments will be rejected. The filer/importer has the option of filing an appropriate formal or other informal entry and paying all applicable duties, taxes and fees."
4th February 2025
An Executive Order was signed by President Donald Trump in the United States on February 1st, 2025.
"ADDRESSING AN EMERGENCY SITUATION: The extraordinary threat posed by illegal aliens and drugs, including deadly fentanyl, constitutes a national emergency under the International Emergency Economic Powers Act (IEEPA)." - Full fact sheet available on the White House website.
Since signing the declaration, tariff implementation dates have been postponed in some cases, current situation as of February 4th, 2025:
Canada - 25% tariff increase on goods imported from Canada has been delayed for 30 days
Mexico - 25% tariff increase on goods imported from Mexico has been delayed for 30 days
At Crane Worldwide, our international trade advisory experts are keeping abreast of the situation and will be communicating updates as new information becomes available.
With a strong presence in the United States, Canada, Mexico and P.R. China, please don't hesitate to reach out to a member of the Crane Worldwide Logistics team for trade advisory services.
23rd, January 2025
Although an Executive Order has not been issued by the President in regard to international trade, day one of President Trump’s Administration has shown the administration is actively engaged in assessing US Trade Policy and deems trade policy as a critical component to national security.
The Department of Commerce along with other federal agencies have been assigned to investigate existing trade agreements for trade deficits and currency manipulation and report their findings directly to the President on April 1st.
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The Administration has identified key areas that warrant executive review in order to secure the national security of the United States and curb our nation’s reliance on foreign manufacturing and production. These areas have been tentatively identified as listed below and are anticipated to be subject to new regulations:
It is an inescapable fact that China is a central concern to the Administration. We should expect heightened scrutiny in steel and aluminum products imported from China to the US as well as tighter controls placed on technology exported to China.
The President has not signaled a retreat on the additional duties (Section 232 and 301) set out by his first Administration and reinstated by the Biden Administration. The Administration is considering imposing an additional 10% tariff on Chinese made imports, which would become effective February 1st.
The United States Trade Representative and a host of other designated federal agencies are tasked with assessing the loss of tariff revenues and determining the risk associated with importing counterfeit products and contraband under the duty free de minimis rule.
The de minimis rule allows for goods imported with a value of $800 or less to be imported into the US duty free. The federal agencies will make recommendation to modify the rule in order to safeguard the revenue of the United States and the public health. In addition, the Secretary of Commerce will be reviewing policies and regulations for antidumping and countervailing duty (AD/CVD) laws.
Transaction value will also be evaluated. This may signal that tighter scrutiny may be applied by Customs in assessing the price paid or payable for related transactions, assists and other factors used to arrive at the commercial value of the imported good.
The Administration continues to reiterate that goods made in Mexico and Canada are set to face a 25% tariff increase effective February 1st. The proposed tariff increases are aimed at stopping illegal immigration and the flow of fentanyl from Canada and Mexico into the United States.
This may signal negotiations are still available for consideration until February 1st. The Administration’s directive further directs the Department of Commerce and Homeland Security to assess illegal migration and the flow of fentanyl from Canada, Mexico, and China as well as “other relevant jurisdictions" and recommend trade action to resolve the issue.
The Departments of State and Commerce will review the U.S. export control system and make recommendations to “enhance our Nation’s technological edge and how to identify and eliminate loopholes in existing export controls”.
This initiative is focused on the transfer of goods identified as “strategic goods” - software, and other technology exported to countries that rival American production and market share. This may signal delays in export licensing, and or the imposition of new rules to ensure deemed transactions and technology exports are subject to more scrutiny.
President Trump has directed Treasury, Commerce and Homeland Security to “investigate the feasibility” of creating an External Revenue Service to collect revenue from tariffs on foreign sources.
Tariffs (which are paid by importers) are currently collected by U.S. Customs and Border Protection under Homeland Security. The president has not defined how this initiative is distinguished from tariffs collected by US Customs or identified the meaning of “foreign Sources”. This may signal additional tariffs and new regulations for foreign entities conducting business in the US stream of commerce.
President Trump has directed the United States Trade Representative and the Senior Counselor for Trade and Manufacturing to review all trade agreements including the rules set by the World Trade Organization to ensure trade agreement deals favor US domestic workers, and manufacturers rather than foreign workers.
Future agreements with India, United Kingdom, and the Philippines are also under consideration. This may signal an exit strategy from manufacturing in China. Until the Administration makes a final executive action, we are continuing to review multiple sources of information to proactively provide you with information that may impact your business operations and assist you by providing strategic solutions.
Importers should remain vigilant in assessing what impact an Executive Order, new regulation, new sanction or any federal change may have on your global supply chain.
Reach out to the Crane Worldwide Trade Advisory experts with any questions
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