JF MORAN’S CEO BETTY ROBSON BREAKS DOWN THE BASICS OF TARIFFS AND WHAT BUSINESSES CAN EXPECT
RECIPROCAL TARIFFS ANNOUNCED
Paused For 90 Days
All reciprocal tariffs announced earlier this week are now paused, except those placed on goods coming from China.
Baseline Tariffs - Now Active
Now Active
A 10% tariff on all imported goods into the U.S. (with specific exemptions) took effect on April 5, 2025.
Countries that began paying the newly enacted reciprocal tariff rates this morning will receive a 90-day pause and will only be required to pay the 10% base tariff rate.
These new measures are in addition to existing duties and Section 232 tariffs already in place.
All Imports from China
Now Active
125% Tariff on Imported Chinese Goods
Due to the People's Republic of China retaliating earlier today against the newly enacted Liberation Day tariffs, President Trump has singled out the country for additional financial penalties. He accused China of showing a lack of respect for the world's markets. As a result, China will now face a 125% tariff, up from the originally announced 34% reciprocal rate.
All Chinese goods, excluding those covered under specific exceptions outlined in CSMS 64680374, entered for consumption or withdrawn from a warehouse for consumption on or after 12:01 a.m. ET on April 9 are now subject to this full 125% rate.
ALL STEEL AND ALUMINUM IMPORTS
Now Active
25% Tariff on Steel and Aluminum
A 25% tariff will apply to all steel and aluminum products imported into the U.S., including specified derivative products. The White House has published the Federal Register Notices on Adjusting Imports of Steel and Aluminum into the United States identifying these derivatives. To see the full list of classification codes that our team has compiled, click here.
Exemptions for U.S. Melted & Poured Steel & Aluminum
If a derivative steel product is made in another country but is produced using steel that was melted and poured in the U.S., it will not be subject to additional duties if proper certification is provided to CBP.
Similarly, for aluminum, importers must provide CBP documentation detailing the aluminum content used in derivative aluminum products.
CBP will issue further guidance on required documentation.
Previously Exempt Countries
All previous Steel and Aluminum agreements with trading partners including Argentina, Australia, Brazil, Canada, EU, Japan, Mexico, S. Korea, Ukraine, the U.A.E., or the UK are cancelled effective March 12. For Steel products and derivatives from Turkey a 50% tariff will be applied.
Enforcement & Penalties
The 25% tariff applies in addition to other duties, such as antidumping or Section 301 duties on Chinese imports.
No duty drawback will be allowed on steel and aluminum tariffs.
CBP will prioritize classification reviews for steel and aluminum products and strictly enforce penalties for misclassification.
Steel Products: Penalties will be issued without consideration for mitigating factors, increasing the risk of legal challenges.
Aluminum Products: CBP will impose the maximum legal monetary penalties for any misclassification intended to avoid tariffs.
Canada and mexico:
Now Active
USMCA-compliant goods: 0% tariff
Non-USMCA compliant goods: 25% tariff
Non-USMCA compliant energy and potash: 10% tariff
If existing fentanyl- or migration-related IEEPA orders are lifted:
Non-compliant goods will face a 12% reciprocal tariff
USMCA-compliant goods will retain preferred status
AUTO INDUSTRY TARIFFS:
Now Active
25% on All Auto Imports and Specific Parts
A 25% tariff is now in effect on all automobile imports and select auto parts, impacting manufacturers, dealerships, and supply chains across the industry.
ADDITIONAL RESOURCES:
Leverage Foreign Trade Zones (FTZs) to Mitigate Tariff Costs
With the latest tariff increases impacting global trade, Foreign Trade Zones (FTZs) offer a strategic way to reduce duty costs and minimize trade disruptions. FTZs allow businesses to defer or reduce certain duties and tariffs, providing enhanced flexibility in supply chain operations.
Is an FTZ the right fit for your business? Connect with your JF Moran representative today to explore how FTZs can support your tariff mitigation and cost-saving strategy. Let us optimize your trade approach—get started today!
STAY UP TO DATE:
Follow us on LinkedIn for the latest tariff information and subscribe to our monthly LinkedIn Newsletter, AcrossTheTrax for in-depth analysis of current events in international trade.