On April 2, 2025, the White House announced its reciprocal tariff program, increasing the ad valorem rates on all countries under the International Emergency Economic Powers Act of 1977 (IEEPA). These rates will be charged in addition to the normal duty rates ordinarily applicable to products.
- Effective April 5: the United States will charge a 10% tariff on all countries not already subject to national security tariffs with which the U.S. maintains normal trade relations. All current import restrictions for Cuban, Russian, Belarussian, and North Korean products remain in effect. The 25% national security tariffs imposed on products from Canada and Mexico are not changed by this order, and the US-Mexico-Canada Agreement ("USMCA") exemptions will remain in place. U.S. Customs and Border Protection ("CBP") has separately reminded importers claiming USMCA eligibility to file a USMCA certificate with each entry and be prepared for audits to verify eligibility.
- Effective April 9: individualized tariff rates will be imposed for specific countries, which may increase or decrease based on future trade negotiations. Rates range from 10% to 49%, including a 10% tariff on products from the United Kingdom and Brazil, a 20% tariff on products from European Union member states, a 34% tariff on products from China, and a 49% tariff on products from Cambodia.
- Exemptions: Tariffs will not increase for steel, aluminum, and certain products containing steel or aluminum, automobiles and automotive parts, potash, copper, pharmaceuticals, semiconductors, lumber, bullion, energy, critical minerals not available in the United States, and national defense needs. Imported products containing at least 20% U.S. parts or materials may be claim a partial exemption and pay the applicable ad valorem tariff on only the non-U.S. value portion. Importers should watch for additional guidance from CBP regarding the documentation required for this partial exemption.
In the United States, tariffs are collected by CBP from the importer of record, which is the party that owns or has purchased the products being imported. The importer of record is responsible for properly declaring the value, classification, and country of origin of entered products, as well as paying duties, taxes, and other fees.
Honigman's Regulatory & Executive Order Task Force is closely monitoring developments and offering guidance to help businesses navigate these changes. Please reach out to Angela Gamalski, Chauncey Mayfield, or another member of the Regulatory Practice Group or Commercial Transactions Practice Group with any questions or for further assistance in navigating these changes.
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