US Tariff Update

Happening Now

President Donald Trump has announced new reciprocal tariffs on trade partners, with rates varying based on the trade deficit. Here’s a quick recap of the announcements from the White House.

As of April 14th

U.S. Probes Pharma, Chip Imports Over Security Risks

On April 14, 2025, the U.S. Department of Commerce’s Bureau of Industry and Security (BIS) launched investigations into the national security risks of importing pharmaceuticals and semiconductors, including manufacturing equipment. These reviews fall under Section 232 of the Trade Expansion Act of 1962, which allows the President to restrict imports that may harm national security.

While these investigations usually take up to 270 days, the Trump administration aims to act faster, with tariffs possibly being introduced within 60 to 90 days. Like the recent probes into copper and wood products, public comment periods are short, and no hearings are planned.

The semiconductor review covers chips, semiconductor manufacturing equipment, and related products. The U.S. relies heavily on suppliers from East Asia—including Taiwan, South Korea, Malaysia, Japan, and China. Proposed tariffs may start at 25% and could increase, as the administration looks to boost domestic production and reduce dependence on foreign sources.

As of April 11th

Executive Order on Reciprocal Tariff Exemptions – Effective April 5

The Administration has issued a new Executive Order providing exemptions from existing reciprocal tariffs—10% for all countries (except China) and 125% for China—on products classified under specific tariff codes.

While media coverage focuses on smartphones, semiconductors, and computers, many other products may also qualify. Importers are advised to review their HTS codes to determine eligibility and ensure their customs broker systems are set to automatically apply the exemptions.

The exemptions apply to entries filed on or after April 5. Brokers should amend affected entries to remove the reciprocal tariffs before duties are paid. If duties have already been paid, a Post Summary Correction (PSC) should be filed to secure a refund.

Importantly, this exemption does not override the applicability of IEEPA (International Emergency Economic Powers Act), which remains in effect.

List of Exempted HTS Codes:

• 8471 – Automatic data processing machines and their unit equipment, including computers and their accessories, such as computers, servers, workstations, motherboards, etc.
• 8473.30 – Portable automatic data processing machines, weighing not more than 10 kg, consisting of at least a central processing unit, a keyboard and a display
• 8486 – Machines and apparatus of a kind used solely or principally for the manufacture of semiconductor boules or wafers, semiconductor devices, electronic integrated circuits or flat panel displays; machines and apparatus specified in note 11(C) to this chapter; parts and accessories:
• 8517.13.00 – Smartphones
• 8517.62.00 – Machines for the reception, conversion and transmission or regeneration of voice, images or other data, including switching and routing apparatus
• 8523.51.00 – Solid-state non-volatile storage devices
• 8524 – Flat panel display modules, whether or not incorporating touch-sensitive screens
• 8528.52.00 – Capable of directly connecting to and designed for use with an automatic data processing machine of heading 8471
• 8541.10.00 – Diodes, other than photosensitive or light-emitting diodes (LED)
• 8541.21.00 – With a dissipation rate of less than 1 W / Unmounted chips, dice and wafers / With an operating frequency not less than 100 MHz
• 8541.29.00 – Unmounted chips, dice and wafers / With operating frequency not less than 30 MHz
• 8541.30.00 – Thyristors, diacs and triacs, other than photosensitive devices / Unmounted chips, dice and wafers / Photosensitive semiconductor devices, including photovoltaic cells whether or not assembled in modules or made up into panels; light-emitting diodes (LED)
• 8541.49.10 – Other diodes / Unmounted chips, dice and wafers
• 8541.49.70 – Transistors / Unmounted chips, dice and wafers
• 8541.49.80 – Optical coupled isolators
• 8541.49.95 – Other semiconductor devices
• 8541.51.00 – Semiconductor-based transducers
• 8541.59.00 – Unmounted chips, dice and wafers
• 8541.90.00 – Parts
• 8542 -Electronic integrated circuits

As of April 10th

President Donald Trump has announced a 90-day pause on all country-specific reciprocal tariffs—with the exception of China. The update, effective April 10, 2025, includes the following key changes:

• China, Hong Kong, and Macau:
  Reciprocal tariffs on imports from these regions have increased to 125%, effective immediately. These imports are now subject to:
  Base duty rate + Section 301 duties (7.5% or 25%, if applicable) + 20% IEEPA tariff + 125% reciprocal duty.
• All other countries (excluding China, Hong Kong, Macau, Mexico, and Canada):
  A temporary 10% reciprocal tariff will apply through July 8, 2025. This reduction is part of the 90-day suspension of higher rates originally outlined in the Executive Order.
• Entries filed on April 9 for non-China origin cargo at the higher reciprocal rates will not qualify for the 10% temporary reduction.
• Exemptions:
  All previous exemptions remain in effect. This includes goods from Mexico and Canada, as well as imports already subject to steel, aluminum, and auto tariffs—which continue to be exempt from reciprocal tariffs.

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As of April 9th

President Donald Trump has increased the reciprocal tariff for China from 34% to 84%, in response to the retaliatory tariff of 34% placed by China to the US.

Example: How New Tariffs Impact Duty & Tax Calculation for China

Below is a sample breakdown for products classified under HTSUS 8538.90.8180, showing how tariffs may vary depending on country of origin and export date.

Country of Origin: China

• If final export date on/after April 9: General 3.5% + Section 301 China 25% + IEEPA China 20% + IEEPA Reciprocal 84% → Total:132.5%

As of April 3rd

10% Additional Tariff (April 5 Onward)

An additional 10% tariff applies to all countries, effective 12:01 AM EDT on April 5.

• Exemption: Shipments that depart their country of origin before this time are not subject to the 10% tariff.

Higher Country-Specific Duty Rates (April 9 Onward)

For countries with a reciprocal tariff rate above 10%, that higher rate will replace the 10% tariff on April 9 at 12:01 AM EDT.

• Exemption: Shipments that depart from origin before 12:01 AM EDT on April 9 are exempt.
• Clarification for China:
  • For China (and by extension, Hong Kong and Macau), the rate rises from 10% on April 5 to 34% on April 9, unless action is taken to reduce the rate beforehand.
  • Any country with a rate higher than 10% will follow this two-step increase schedule unless noted otherwise.

Find the quick breakdown below:

Exemptions from These Tariffs:

These new duties do not apply to:

• Products already covered by the February 10 steel & aluminum tariff order.
• Automobiles and parts covered by the March 26 order.
• Specific industries: copper, pharmaceuticals, semiconductors, lumber, critical minerals, and energy products.
• Countries under Column 2 duty rates (those without Normal Trade Relations).
• Future Section 232 products.
• Goods containing 20% or more U.S.-made content (by transaction value) are not subject to the new reciprocal tariffs. In other words, if 20% or more of the transaction value (the amount the importer is paying the supplier) of the product is US made, then the US content is not dutiable at the new reciprocal tariff rate. The non-US content, though, is dutiable at the reciprocal rate. For example:

Total product value: $100
U.S.-made component: 25% of $100 = $25
Non-U.S. component: 75% of $100 = $75

In this case, the $25 U.S. made portion is exempt, while the $75 portion is subject to the applicable reciprocal tariff.

USMCA Exemptions and Special Cases:

• The 25% tariff exemption for Canada (CA) and Mexico (MX) is extended.
• Non-USMCA goods from CA/MX still face a 25% tariff.
• Non-USMCA energy products from CA/MX are subject to a 10% tariff.
• Reciprocal tariffs do not apply to CA/MX—the new 10% tariff is not added to the existing 25% rate.
• If existing CA/MX orders are canceled or suspended, then USMCA-qualifying goods and energy/potash resources will not face reciprocal tariffs. Non-qualifying goods will be subject to a 12% tariff.

Additional Requirements:

• Goods subject to these duties must enter FTZs under privileged foreign status.
• Items covered by the new tariffs are eligible for de minimis treatment until the Secretary of Commerce finalizes systems for duty collection.

De Minimis Ban for China and Hong Kong – Effective May 2, 2025

On April 2, President Trump signed an Executive Order ending duty-free de minimis treatment (for shipments under 800 USD) for goods originating from China and Hong Kong, effective 12:01am EDT, May 2, 2025. This includes packages shipped via international postal services.

• Full duties (base + Section 301, 232, and IEEPA) will apply.
• Formal entry and duty payment is required for all affected shipments.
• Macau may be added to this ban pending further review.
• Postal carriers must either: Pay 30% of declared value per package, or Pay a 25 USD fee per item starting May 2, increasing to 50 USD per item starting June 1.
• Carriers must post a bond and comply with enhanced reporting.

This policy change ends de minimis exemptions for low-value goods from China and Hong Kong, affecting e-commerce and small parcel flows to the U.S.

Possible Future Adjustments:

• If a country retaliates with tariffs on US exports, US tariffs may increase or expand.
• If countries adjust to create fairer trade, the US may reduce or limit duties.
• If US manufacturing weakens further, the US may increase tariffs under the order.

Example: How New Tariffs Impact Duty & Tax Calculation

Below is a sample breakdown for products classified under HTSUS 8538.90.8180, showing how tariffs may vary depending on country of origin and export date.

Country of Origin: China

• If final export date on or before April 4: General 3.5% + Section 301 China 25% + IEEPA China 20% → Total: 48.5%
  
• If final export date on/after April 5 but on/before April 8: General 3.5% + Section 301 China 25% + IEEPA China 20% + IEEPA Reciprocal 10% → Total: 58.5%
• If final export date on/after April 9: General 3.5% + Section 301 China 25% + IEEPA China 20% + IEEPA Reciprocal 34% → Total: 82.5%

Country of Origin: India

• If final export date on or before April 4: General 3.5% → Total: 3.5%
• If final export date on/after April 5 but on/before April 8: General 3.5% + IEEPA Reciprocal 10% → Total: 13.5%
• If final export date on/after April 9: General 3.5% + IEEPA Reciprocal 26% → Total: 29.5%

Recommendation

• Book shipments now if your inventory and supplies are ready, as air freight capacity is expected to be tight. Partner with a reliable freight forwarder, like Dimerco, to secure space.
• Utilize Free Trade Zones (FTZs) to defer duty payments until products are sold, improving cash flow management.
• Review U.S. trade compliance basics to stay informed on the latest regulations. Consult a trade compliance expert, like Dimerco, for guidance on navigating current policies. Listen to our recent podcast featuring recognized experts on U.S. tariffs and trade compliance for latest insights.