On April 2, 2025, President Trump announced a minimum tariff of 10% on all imported goods, which take effect on April 5 at 12:01am EDT. He also announced “discounted reciprocal tariffs” higher than 10% for goods from several additional countries. In a separate order, the administration also announced the elimination of the de minimis exception to tariffs for goods coming from China.
Our Tariff Strategy team has distilled these latest orders into these important provisions:
- Elimination of the de minimis exception – which exempts shipments of goods valued at less than $800 – for China unless sent through the international postal service. While de minimis was eliminated for China under a previous order, it was stayed due to challenges in its implementation. As this latest order is more specific regarding tariff collection mechanisms, it is more likely to be implemented on time. For those shipments through international postal services, de minimis will remain intact but other duties will come into effect, including 30% of shipment value OR $25 per item. Comes into effect May 2 and postal item duty escalates to $50 on June 1.
- “Reciprocal tariffs” applicable to countries worldwide. These are the key provisions:
- All countries: 10% tariff on all articles imported into the U.S. (not including services). Comes into effect at 12:01am EDT April 5, except goods loaded and in final mode of transit prior to 12:01am EDT on April 5.
- Country-by-country: Country “reciprocal tariffs” – click here for the detailed list of countries. Comes into effect at 12:01 EDT on April 9.
- Exemptions: These duties do NOT apply to a specific list of HTS codes, found here. This includes articles subject to the tariffs already imposed on steel, aluminum, copper, cars, and auto parts (those tariffs stand; these tariffs are not added on). Other exemptions include pharmaceuticals, semiconductors, lumber articles, certain critical minerals, and energy and energy products. Any future tariffs pursuant to Section 232 will replace these tariffs.
- USMCA: Other than those subject to exemptions OR goods originating from Canada and Mexico (as defined by USMCA), these duties are in addition to existing tariffs. If the goods are from Canada and Mexico but do NOT qualify as originating under USMCA, they are already subject to 25% tariffs except energy, energy resources, and potash from Canada, which are 10%.
- Origin: These duty rates apply only to the “non U.S. content” of the article, if at least 20% of the content originates in the U.S.
- De minimis exceptions remain available (except for China under the other order) for an indefinite period of time until Customs has processes in place to collect it; once those processes are in place de minimis will be eliminated for all countries.
- It’s important to note that any tariffs on China — both in these orders and going forward — apply to Hong Kong and Macau as well. As it currently stands, all imports from China carry a MINIMUM tariff of 54%.
The order makes clear that the U.S. is open to negotiation. The responses of U.S. primary trade partners have varied, from threats of retaliatory tariffs to indications they will enter into negotiations with the administration to see if they can reduce them or exempt particular goods. Some countries are considering “countermeasures” that might go beyond tariffs.
The Senate has signaled its discomfort with tariffs against Canada, passing a bill (including Republican support) to undo the Canada tariffs by invalidating the “national emergency” that was used as the presidential authority to impose the tariffs. While the vote is symbolic, as the House has already committed to maintaining the national emergency and the White House has said it would veto the bill in any event, the bill may signal that tariffs on Canadian goods will be eased.
Our Tariff Strategy team suggests that companies should:
- Check your contracts: whether the buyer or the seller ultimately pays the tariffs usually hinges on contract language rather than statutory or administrative law, and multiple clauses might be applicable depending on how tariffs and duties are defined.
- Revisit shipping terms: different INCOTERMS can shift responsibility for payment, so companies may want to consider whether they want to adjust their shipping terms.
- Check the HTS code under which you import to see if your product is exempt, and review products to determine if they may qualify for a tariff reduction if they contain U.S. origin components.
- Consider standing by and delaying high-value imports for the moment if possible, as some countries will negotiate with the U.S., so their tariffs may be delayed or reduced.