President Trump announced through executive action on April 2nd the imposition of broad tariffs on U.S. imports from all countries with near immediate effect.
A baseline tariff of 10% on U.S. imports from all countries will go into effect at 12:01 a.m. on April 5, with an exception made for goods 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onto a vessel at the port of loading and in transit on the final mode of transit before that time, and 2) entered or withdrawn from warehouse for consumption after that time.
Imports from a number of U.S. trade partners, however, will be subject to higher reciprocal tariffs between 11-50%, determined based on current trade deficits with each individual country. The country-specific tariffs (found here) will go into effect at 12:01 a.m. on April 9, except for goods already in transit or withdrawn for consumption before that time. The tariffs will be assessed in addition to any other applicable duties, fees, taxes, exactions, or charges and will remain in place until the president determines that "the underlying conditions described [in the Executive Order] are satisfied, resolved, or mitigated." The reciprocal tariffs do not apply to articles and derivatives of steel/aluminum and auto/auto parts already subject to Section 232 duties.
The EO also reaffirms that the 25% tariff on imports from Canada and Mexico (10% on certain energy products from Canada) will remain on products that do not qualify for duty-free treatment under the USMCA.
Furthermore, the previously announced auto tariffs are now in effect as well. Foreign-made passenger vehicles and light trucks will be subject to 25% tariffs effective at 12:01 on April 3, while the 25% tariff for auto parts will take effect at 12:01 a.m. on May 3. The list of affected auto parts can be found here.
Finally, the De Minimis exception for products with a commercial value under $800 imported from China will be eliminated. Effective May 2 at 12:01, a new duty rate of either 30% of value, or $25 per item will be assessed in lieu of other duties. The $25-per-item charge will be increased to $50 per item after June 1.
O.T.S. will continue to monitor this fluid situation and provide updates as they become available. Please do not hesitate to reach out to your O.T.S. Sales Representative for more information.