LIBERATION DAY, UNPACKED: How New U.S. Tariffs Will Impact Your Imports?

Key Tariff Updates:

• Tariff Application: The new duty rates will apply to goods entered for consumption or withdrawn from a warehouse on its effective date, however, goods already loaded onto a vessel and in transit before this time will not be subject to the additional duty, even if they are entered or withdrawn after the effective date.

We’ve added key clarifications and new information regarding recent U.S. tariff changes. These updates are also highlighted within the original notice below.

Dear Valued Clients and Partners,

We are writing to inform you of significant new U.S. tariffs that may affect your import operations. Below is a comprehensive overview of these tariffs, including their effective dates and key details.

📦 Tariff Timing: Based on Import Date

1. Universal Import Tariff

• • Effective Date: April 5, 2025, at 12:01 a.m. EDT
  • Rate: 10% on all imported goods into the U.S.
  • Details: This baseline tariff applies universally to all imports, regardless of country of origin. It is important to note that all imports will be subject to the universal baseline tariff of 10% OR a reciprocal tariff as defined below.

2. Reciprocal Tariffs

• • Effective Date: April 9, 2025, at 12:01 a.m. EDT
  • Details: This tariff applies on imports from countries with significant trade imbalances with the U.S. For a complete list of countries and their respective rates, please refer to Annex I.
  • Exceptions: Some goods will NOT be subject to the Reciprocal Tariff. These include: (1) articles subject to 50 USC 1702(b); (2) steel/aluminum articles and autos/auto parts already subject to Section 232 tariffs; (3) copper, pharmaceuticals, semiconductors, and lumber articles; (4) all articles that may become subject to future Section 232 tariffs; (5) bullion; and (6) energy and other certain minerals that are not available in the United States.

3. Steel and Aluminum Tariffs

• • Effective Date: March 12, 2025, at 12:01 a.m. EDT
  • Rate: 25% on all steel and aluminum imports
  • Details: These tariffs, under Section 232, apply globally without exemptions and are assessed independently of other tariffs. Not subject to reciprocal tariffs.

4. Automobile Tariffs

• • Effective Date: April 3, 2025, at 12:01 a.m. EDT
  • Rate: 25% on all foreign-made automobiles
  • Details: This tariff applies globally to imported vehicles, while other automotive components will increase as of May 3, 2025 (refer to Federal Register for details). Not subject to reciprocal tariffs.

5. Canada & Mexico – USMCA Compliance Critical

• • USMCA-Compliant Goods
    • Tariff: 0%
    • Details: Goods meeting the United States-Mexico-Canada Agreement (USMCA) standards remain exempt from these new tariffs. Tariffs on automobile parts from USMCA countries are temporarily exempt but are expected to be fully implemented by May 3, 2025.
  • Non-USMCA-Compliant Goods
    • Tariff: 25%
    • Details: Goods not meeting USMCA standards including automobiles are subject to this tariff.
  • Non-Compliant Energy & Potash Imports
    • Tariff: 10%
    • Details: Specific to energy and potash imports not meeting compliance standards.

⚠️ De Minimis Exemption – Significant Changes

• Effective Date: May 2, 2025, at 12:01 a.m. EDT
• What’s Changing: The U.S. is eliminating the de minimis exemption (duty-free entry for goods valued under $800) for shipments originating from China and Hong Kong.
• Impact:
  All imports from China and Hong Kong, regardless of value, will be subject to applicable duties and taxes.
  Increased compliance requirements and potential delays in customs clearance.

✅ Key Takeaways

• Tariff Application: The new duty rates will apply to goods entered for consumption or withdrawn from a warehouse on its effective date, however, goods already loaded onto a vessel and in transit before this time will not be subject to the additional duty, even if they are entered or withdrawn after the effective date.
• Universal vs. Reciprocal Tariffs: The 10% Universal Tariff applies unless a higher Reciprocal Tariff rate is specified for a particular country, in which case the Reciprocal Tariff supersedes the Universal Tariff.
• Section 232 Tariffs: Steel and aluminum tariffs are assessed independently and apply globally without exemptions.
• Automobile Tariffs: A separate 25% tariff applies to all foreign-made automobiles and certain components, irrespective of other tariff measures.
• USMCA Compliance: Goods from Canada and Mexico that comply with USMCA standards are exempt from these tariffs; non-compliant goods are subject to specified tariffs.
• De Minimis Changes: The removal of the de minimis exemption for imports from China and Hong Kong will subject all such imports to duties, affecting low-value shipments significantly.
• Reach out to us to support: While we can’t make these tariffs disappear, it’s critical to ensure you’re using strategies that provide the lowest dutiable value—legally and defensibly.