US Tariffs from April 2025: What the New 'Reciprocal Tariff' Policy Means for Importers

Introduction

Effective April 5, 2025, a comprehensive customs measure will come into effect in the USA, impacting imports from nearly all countries. The background: President Trump signed a new executive order on April 2, which, as a response to structural trade imbalances, imposes an additional import duty of at least 10% on the value of goods. For certain countries with particularly high bilateral trade surpluses with the USA, even higher country-specific rates apply from April 9.

The goal of the measure, according to the White House, is to establish fair competition conditions through reciprocal tariffs and reduce dependence on foreign production.

Key Points at a Glance

Additional tariffs on all imports from April 5, 2025

All goods imported into the USA or removed from customs or free zones from this date are subject to an additional duty rate of 10%.

Important: These duties apply in addition to existing levies, such as MFN duties or Section-301 duties—they do not replace them, but are added on top.

Exception: Goods shipped before April 5 and already en route are not affected.

Increased duties for certain countries from April 9, 2025

For countries with a particularly high trade balance surplus with the USA, an individual, higher rate will take effect on April 9. The precise list of countries and tariff levels is specified in Annex I of the regulation.

Important Note (or the good news 🧐) on Tariff Calculation

The ad valorem rates specified in the regulation apply exclusively to the non-US origin portion of a good—provided at least 20% of the value of the bill of materials (BOM) consists of US-origin goods. This so-called "US Content Rule" is intended to ensure that multinational supply chains with substantial US components are favored.

An example: If a complex industrial product with 30% US components is assembled in Vietnam and then exported to the USA, only the 70% non-US portion is subject to the ad valorem duty of 46% as per Annex I.

Exceptions for Certain Product Groups

Some product categories are exempt from the new duties, including:

• Steel and aluminum products already subject to Section-232 duties (25%)

• Automobiles and parts subject to a separate 25% duty rate since April 3

• Pharmaceuticals, semiconductors, copper, wood, critical minerals, energy, and energy products

• Products such as personal communication devices, informational materials (e.g., books, films), humanitarian goods (e.g., food, medicine), travel-related services (e.g., air tickets, accommodations)

• USMCA-compliant goods

These exceptions are detailed in Annex II of the executive order. CBP is authorized to examine the declarations of origin and the logic of origin transformation for all exceptions.

In the coming days, we will take a closer look at the exceptions for certain product groups according to Annex II.

Further Operational Impacts

• Duty drawback still seems permissible—subject to pending guidelines from CBP.

• Goods entering a Foreign Trade Zone (FTZ) after April 9 must be registered under "privileged foreign status"—thus the duty rate is fixed from that point onwards.

• The regulation contains a "Retaliation Clause": Countries responding with their duties to the measure may be subject to further increases.

Canada & Mexico: USMCA remains valid—but only for qualified origin goods

For Canada and Mexico, separate additional duties continue to apply to non-compliant goods under existing emergency regulations due to migration and drug trafficking. USMCA-compliant goods remain duty-free, while non-compliant goods are subject to a 25% duty (specifically 10% for certain raw materials such as energy and potash).

Implications for Importing Companies

For companies exporting goods to the USA or operating as importers there, important implications arise:

• Review cost calculations: The additional duties significantly increase the import price.

• Analyze rules of origin: USMCA compliance or US content (at least 20% value-added) can prevent tariffs. This requires a bill of materials with the respective countries of origin and value per material.

• Verify customs tariff numbers: Whether a good is affected or falls under an exception depends directly on the correct customs classification in the Harmonized Tariff Schedule (HTSUS).

• Rethink supply chains: The USA aims to create incentives for "re-shoring" production. Strategic relocation may become an option.

Conclusion

The new US customs measure is extensive and affects nearly all imports. Companies should act quickly to avoid or minimize potential additional costs. At traide AI, we analyze the effects of such measures on customs classifications and assist with customs tariff numbers—even in complex scenarios.

Those who wish to know if their products are affected or fall under exceptions should rely on a solid HTS classification and targeted evaluation of Annex I & II.

In the coming days, we will take a closer look at the exceptions for certain product groups according to Annex II.