U.S. Reciprocal Tariffs
On April 7th, the Federal Register released Annexes to the Executive Order on reciprocal tariffs (Executive Order 14257 Regulating Imports With a Reciprocal Tariff To Rectify Trade Practices That Contribute to Large and Persistent Annual United States Goods Trade Deficits), including Annex III detailing Harmonized Tariff Schedule subheadings that will be used for the tariffs that take effect at 12:01 a.m. eastern daylight time, April 5 and April 9.
- Annex I: This is a list of countries subject to adjusted reciprocal tariffs effective on April 9th, 2025
- Annex II: This list delineates goods that shall not be subject to the reciprocal tariffs. Annex II includes:
- Articles that are encompassed by 50 U.S.C 1702 (b)
- Articles and derivatives of steel and aluminum subject to the duties imposed pursuant to Section 232 duties
- Automobiles and automotive parts subject to Section 232 duties
- Annex III: Harmonized Tariff Schedule subheadings
On April 4th, CBP published guidance on reciprocal tariffs effective on April 5th, 2025 via CBP’s Cargo Systems Messaging Service (CSMS message #64649265) stating:
“All imported goods, other than those that fall within the identified exceptions, entered for consumption, or withdrawn from warehouse for consumption on or after 12:01 a.m. eastern daylight time (EDT) on April 5, 2025, are subject to additional ad valorem duty rate of 10%.”
CBP will issue separate guidance for the actions that are effective on April 9, 2025.
Importers should note key exceptions:
- Goods loaded onto a vessel at the port of loading and in transit on the final mode of transit before 12:01 a.m. EDT on April 5, 2025, and entered for consumption or withdrawn from warehouse for consumption after 12:01 a.m. EDT on April 5, 2025, and before 12:01 a.m. EDT on May 27, 2025, shall not be subject to such additional duty;
- Qualifying products from Canada and Mexico entered free of duty under the U.S.-Mexico-Canada Agreement (USMCA) are important exceptions;
- Articles the product of countries listed in Column 2 identified in general note 3(b); currently limited to Belarus, Cuba, North Korea and Russia;
- Articles of iron or steel, derivative articles of iron or steel, articles of aluminum, derivative articles of aluminum, passenger and light trucks and parts of passenger vehicles and light trucks, of any country, subject to Section 232 actions;
- For articles in which at least 20% of the value of article is U.S. originating, the U.S. content will not be subject to the reciprocal tariff. The reciprocal tariff will be assessed on the non-U.S. content;
- Articles that are informational materials, including but not limited to, publications, films, posters, phonograph records, photographs, microfilms, microfiche, tapes, compact disks, CD ROMs, artworks, and news wire feeds; and
- Articles that are donations, by persons subject to the jurisdiction of the United States, of articles, such as food, clothing, and medicine, intended to be used to relieve human suffering.
The CSMS message clarifies that duty drawback is allowed, and notes that goods that are eligible for admission to a foreign trade zone under “domestic status” and admitted into a U.S. foreign trade zone on or after 12:01 a.m. EDT on April 9, 2025, must be admitted as “privileged foreign status.” Such goods will be subject, upon entry for consumption, to the reciprocal duties imposed on April 2nd.
The Federal Register notice, published on April 7th, echoes CBP’s CSMS No. 64649265.
Due to the rapidly changing application and modifications of duty rates, please note that Deringer is not responsible for coordinating the timing of U.S. entry and imposed tariff rates.
