On April 2, 2025, President Donald Trump announced sweeping reciprocal tariffs aimed at promoting US manufacturing and addressing trade imbalances. The measures include a universal 10 percent tariff on all imported goods starting April 5, with significantly higher rates for specific countries, including 34 percent on China (on top of existing tariffs bringing the minimum to 54 percent), 32 percent on Taiwan (excluding semiconductors), 46 percent on Vietnam, and 26 percent on India, starting April 9.
Reciprocal Tariff ChartAuto Tariffs
Canada and Mexico already face 25 percent tariffs on many goods and will not be subject to additional duties from Wednesday’s announcement. However, they will be impacted by a separate set of auto import tariffs on all foreign-made automobiles, which President Trump announced last week and are set to take effect as of 12am ET, March 3.
Heading 9903.94.06 covers all items that fall under the HTSUS provisions listed in section (g) of this note, as long as they either:
- Qualify for special tariff treatment under the USMCA (except for automobile knock-down kits or parts compilations), or
- Are not parts of passenger vehicles like sedans, SUVs, crossovers, minivans, cargo vans, or light trucks.
Update on De Minimis
A critical component of this policy is the elimination of duty-free de minimis treatment for certain Chinese imports. The Secretary of Commerce has confirmed that enforcement mechanisms are in place to track and collect tariff revenue from China. As a result, under 19 U.S.C. 1321(a)(2)(C), duty-free privileges will no longer apply to products from China, including those from Hong Kong, as outlined in Executive Order 14195, Section 2(a).
Notably, this change impacts international postal packages from China and Hong Kong, meaning that consumers and businesses relying on such shipments will face additional duties. These new restrictions will take effect at 12:01 AM EDT on May 2, 2025.
The new tariffs are expected to spark strong reactions from global trade partners and businesses relying on imports.
As implementation nears, businesses and trade analysts will be closely watching the economic impact of these measures and any potential responses from the international community.
We will continue to monitor developments related to these tariffs and provide more information as it becomes available. If you have additional questions about how this may impact your business, reach out to your Mohawk Global Representative.