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Updates to U.S. reciprocal tariffs

Updates to U.S. reciprocal tariffs

Section 232 Aluminum and Steel tariffs increase to 50%

06-04-2025

Update published June 4, 2025

The White House has doubled the tariffs on steel and aluminum imports from 25% to 50%, effective June 4, 2025. A proclamation issued the day prior outlines how the increase impacts steel and aluminum imports under Section 232 authority.

Key details:

Steel, aluminum, and articles under Section 232 already stored in U.S. trade zones under “privileged foreign status” before June 4 will pay the tariff rate in effect when they entered the commerce of the U.S.
The non-aluminum, non-steel content of all Section 232 aluminum and steel articles and derivative articles shall be subject to tariffs.
The applicable tariff rates for articles of the United Kingdom pursuant to Proclamation 9704, as amended; Proclamation 9705, as amended; Proclamation 9980, as amended; Proclamation 10895; and Proclamation 10896 shall remain at 25%.

If you have any questions regarding import compliance or tariff classifications, please contact your local DSV representative.

Published May 29, 2025

On May 28, 2025, the U.S. Court of International Trade ruled that the White House’s sweeping tariffs imposed under the International Emergency Economic Powers Act (IEEPA) exceeded presidential authority and are therefore unlawful.

Key ruling details

The three-judge panel concluded that the IEEPA does not authorize a U.S. president to levy universal duties on imports from around the world. The court specifically found that the White House’s "Worldwide and Retaliatory Tariff Orders" exceeded the scope of presidential power under the emergency economic powers statute.

This ruling specifically targets only the IEEPA-based tariffs. Other White House administration trade measures remain unaffected, including:

Section 232 tariffs (national security-based duties)
Section 301 tariffs (unfair trade practice duties)
Other tariffs imposed under different statutory authorities

White House files appeal

The White House has already filed an appeal on the Court of International Trade decision. The case will now proceed to the U.S. Court of Appeals for the Federal Circuit, with the possibility of eventual Supreme Court review. The appeal process could take months or years to resolve.

Despite the court ruling, no immediate changes are expected in tariff collection. The additional IEEPA duties are expected to continue being collected by U.S. Customs and Border Protection while the appeal works its way through the federal court.

Should you have any questions or concerns, please reach out to your local DSV representative.

Published May 12, 2025

On May 12, 2025, the White House announced a new agreement with China to lower Chinese tariffs, end retaliatory measures, maintain a baseline US tariff, and initiate future talks to expand market access for American exports.

U.S. actions

The U.S. will reduce tariffs on Chinese imports from 145% to 30%.
The new 30% rate is the sum of the 20% duty the current administration imposed early in its second term over alleged Chinese failures to curb fentanyl flows and the 10% universal tariff he has applied to nearly all imports.

Chinese actions

China will lower its retaliatory tariffs on U.S. goods from 125% to 10%.
China has agreed to remove retaliatory tariffs announced since April 4, 2025, and suspend non-tariff countermeasures imposed on the US since April 2, 2025. China will also suspend the initial 34% tariff on the U.S. from April 4, 2025 for 90 days, retaining a 10% tariff during that period.

Implementation timeline

Both countries have committed to implementing these measures by May 14, 2025.

Despite these reductions, it's important to note that goods traded between the U.S. and China will still be subject to other stackable tariffs that remain in place. The agreement addresses only reciprocal retaliatory measures while leaving the broader tariff structure intact.

Published May 2, 2025

On April 29, 2025 , The White House issued an executive order aimed at reducing the cumulative impact of overlapping tariffs on certain trade remedies. This action addresses the "tariff stacking" effect that has occurred over the past 100 days, while maintaining the administration's core policy objectives.

Impacted trade regimes:

Canadian IEEPA Goods: Goods subject to the International Emergency Economic Powers Act (IEEPA) from Canada.
Mexican IEEPA Goods: Goods subject to the IEEPA from Mexico.
Auto and Auto Parts (Section 232): Vehicles and automotive parts that fall under the Section 232 tariffs, which are imposed for national security reasons.
Steel and Steel Derivatives (Section 232): Steel products and their derivatives that are subject to Section 232 tariffs.
Aluminum and Aluminum Derivatives (Section 232): Aluminum products and their derivatives that are also subject to Section 232 tariffs.

Additionally, the proclamation modifies the tariff action on automobiles and automobile parts by encouraging manufacturers to assemble their vehicles in the U.S. This will be achieved by offsetting a portion of the tariffs for auto parts used in U.S. assembled vehicles.

In general, goods subject to Section 232 tariffs will be excluded from reciprocal tariffs. However, each importer’s business is unique, and the impact of this executive order will vary depending on your specific situation. Therefore, we encourage you to reach out to your local DSV representative to clarify and maximize the benefits.

Fact sheet

CBP - Visual fact sheet

CBP - Section 232 Tariffs on Steel & Aluminum FAQ's

CBP - IEEPA Tariffs FAQ's

Published April 14, 2025

On April 11, 2025, The White House clarified the exceptions for semiconductors on reciprocal tariffs under Executive Order 14257, which was initially issued on April 2, 2025. The specific provisions excluded from the tariffs fall under the following Harmonized Tariff Schedule of the United States (HTSUS) headings and subheadings:

8471
847330
8486
85171300
85176200
85235100
8524
85285200
85411000
85412100
85412900
85413000
85414910
85414970
85414980
85414995
85415100
85415900
85419000
8542

Importers are encouraged to update any entries previously filed to request a refund for tariffs collected on these semiconductor products after April 5, 2025.

Published April 10, 2025

On April 9, 2025, the White House announced a 90-day pause on the increase of reciprocal tariffs.

90-day pause on the increase of reciprocal tariffs.
Tariffs remain at 10% for all countries except China.
For China, tariffs will be raised to 125% (reciprocal) + 20% (IEEPA).

Effective April 10, 2025, the De Minimis tariff Increase from China extends the previous executive orders aimed at addressing trade imbalances and national security concerns. The key changes are:

Section 2(c)(i): Ad valorem duty rate increased from 90% to 120%.
Section 2(c)(ii): Per postal item duty increased from $75 to $100, effective from May 2, 2025, to June 1, 2025.
Section 2(c)(ii): Per postal item duty further increased from $150 to $200, effective from June 1, 2025.

Published April 3, 2025

The U.S. government has announced new reciprocal tariffs. In an executive order issued on April 2, 2025, the White House outlined a phased implementation of these tariffs, which will apply to imports from all countries. These tariffs will be applied in two phases:

April 5, 2025, at 12:01 AM ET – A 10% tariff on all imported goods from all countries.
April 9, 2025, at 12:01 AM ET – An additional country-specific tariff rate, as detailed in Annex l of the executive order.

How these tariffs work

These new tariffs are in addition to any existing tariffs imposed under previous trade measures. This means that products already subject to duties—such as those under Section 301 (China tariffs) or Section 201 (safeguard tariffs on specific goods like solar panels and washing machines)—will now also face the new reciprocal tariffs unless specifically exempted. (Source: executive order, Section 3c – and may include other sections)

Exceptions to the tariffs

There are exceptions for goods from any countries if previously loaded onto a vessel, see exceptions noted in Annex III. Additionally, certain goods of above sections will not be subject to these additional tariffs. Highlights include:

Articles protected under 50 U.S.C. 1702(b).
Steel and aluminum products already subject to Section 232 tariffs under the Trade Expansion Act of 1962.
Automobiles and automotive parts covered by previous Section 232 duties.
Specific exempted goods, including copper, pharmaceuticals, semiconductors, lumber, critical minerals, and energy products (see Annex II for full details).
Goods from trading partners listed in Column 2 of the Harmonized Tariff Schedule of the United States (HTSUS).
Future products that may be subject to duties under Section 232.

List of countries with reciprocal tariffs
List of goods not subject to the additional tariffs

Impact on trade with Canada and Mexico

Trade with Canada and Mexico remains subject to IEEPA orders, meaning:

USMCA-compliant goods will continue to be tariff-free (0%).
Non-USMCA-compliant goods will maintain a 25% tariff.
Non-USMCA-compliant energy and potash will be subject to a 10% tariff.

Elimination of China’s de minimis treatment

On April 2, 2025, the White House signed an executive order terminating Section 301 low value de minimis treatment for imports from China and Hong Kong, effective May 2, 2025, at 12:01 EDT.

Imported goods sent through means other than the international postal network that are valued at or under $800 and that would otherwise qualify for the de minimis exemption will be subject to all applicable duties, which shall be paid in accordance with applicable entry and payment procedures.

All relevant postal items containing goods that are sent through the international postal network that are valued at or under $800 and that would otherwise qualify for the de minimis exemption are subject to a duty rate of either 30% of their value or $25 per item (increasing to $50 per item after June 1, 2025). This is in lieu of any other duties, including those imposed by prior Orders.

Resources

For more details on the rationale behind these measures, refer to: