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U.S. and China Agree to 90-Day Tariff Reduction

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Key Points

• The United States and China reached a better-than-expected deal to temporarily slash tariffs, sending stocks and the U.S. dollar sharply higher, as the world’s two biggest economies seek to end a damaging trade war that has stoked fears of recession.
• The U.S. will cut extra tariffs it imposed on Chinese imports in April this year to 30% from 145% and Chinese duties on U.S. imports will fall to 10% from 125% for the next 90 days, the two sides said on Monday.

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from: whitehouse.gov

SECURING ANOTHER HISTORIC DEAL: Today, on the heels of the brand-new deal with the United Kingdom, President Donald J. Trump reached an agreement with China to reduce China’s tariffs and eliminate retaliation, retain a U.S. baseline tariff on China, and set a path for future discussions to open market access for American exports.

• Today, the United States issued the first joint statement on trade in many years with China after successful negotiations over the weekend in Geneva, Switzerland.
• Both parties affirmed the importance of the critical bilateral economic and trade relationship between both countries and the global economy.
• For too long, unfair trade practices and America’s massive trade deficit with China have fueled the offshoring of American jobs and the decline of our manufacturing sector.
• In reaching an agreement, the United States and China will each lower tariffs by 115% while retaining an additional 10% tariff. Other U.S. measures will remain in place.
• Both sides will take these actions by May 14, 2025.
• This trade deal is a win for the United States, demonstrating President Trump’s unparalleled expertise in securing deals that benefit the American people.

CHINESE ACTIONS: China will remove the retaliatory tariffs it announced since April 4, 2025, and will also suspend or remove the non-tariff countermeasures taken against the United States since April 2, 2025.

• China will also suspend its initial 34% tariff on the United States it announced on April 4, 2025 for 90 days, but will retain a 10% tariff during the period of the pause.

AMERICAN ACTIONS: The United States will remove the additional tariffs it imposed on China on April 8 and April 9, 2025, but will retain all duties imposed on China prior to April 2, 2025, including Section 301 tariffs, Section 232 tariffs, tariffs imposed in response to the fentanyl national emergency invoked pursuant to the International Emergency Economic Powers Act, and Most Favored Nation tariffs. 

• The United States will suspend its 34% reciprocal tariff imposed on April 2, 2025 for 90 days, but retain a 10% tariff during the period of the pause.
• The 10% tariff continues to set a fair baseline that encourages domestic production, strengthens our supply chains and ensures that American trade policy supports American workers first, instead of undercutting them.
• By imposing reciprocal tariffs, President Trump is ensuring our trade policy works for the American economy, addresses our national emergency brought on by our growing and persistent trade deficit, and levels the playing field for American workers and producers.
• Unlike previous administrations, President Trump took a tough, uncompromising stance on China to protect American interests and stop unfair trade practices.

WORKING TOWARDS A REBALANCING: When these changes come into effect, both nations agreed to establish a mechanism to continue important discussions about trade and economics.

• The U.S. goods trade deficit with China was $295.4 billion in 2024—the largest with any trading partner.
• Today’s agreement works toward addressing these imbalances to deliver real, lasting benefits to American workers, famers, and businesses.
• As our nations continue these discussions, China will be represented by He Lifeng, Vice Premier of the State Council.
• The United States will be represented by Scott Bessent, Secretary of the Treasury, and Jamieson Greer, United States Trade Representative.

ADDRESSING THE FENTANYL CRISIS: The United States and China will take aggressive actions to stem the flow of fentanyl and other precursors from China to illicit drug producers in North America.

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USTR Section 301 Action on China’s Targeting of the Maritime, Logistics, and Shipbuilding Sectors for Dominance

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from: ustr.gov

WASHINGTON – Today, USTR took targeted action to restore American shipbuilding and address China’s unreasonable acts, policies, and practices to dominate the maritime, logistics, and shipbuilding sectors. These responsive actions come after a year-long Section 301 investigation, which included USTR convening a two-day public hearing, receiving nearly 600 public comments, and consulting with government agency experts and USTR cleared advisors.

“Ships and shipping are vital to American economic security and the free flow of commerce,” said Ambassador Greer. “The Trump administration’s actions will begin to reverse Chinese dominance, address threats to the U.S. supply chain, and send a demand signal for U.S.-built ships.”

These actions balance the need for action and the importance of limiting disruption for U.S. exporters. They will occur in two phases:

For the first 180 days the applicable fees will be set at $0.

(1) In the first phase, after 180 days:

• Fees on vessel owners and operators of China based on net tonnage per U.S. voyage, increasing incrementally over the following years;
• Fees on operators of Chinese-built ships based on net tonnage or containers, increasing incrementally over the following years; and
• To incentivize U.S.-built car carrier vessels, fees on foreign-built car carrier vessels based on their capacity.

(2) The second phase actions will not take place for 3 years:

• To incentivize U.S.-built liquified natural gas (LNG) vessels, limited restrictions on transporting LNG via foreign vessels. These restrictions will increase incrementally over 22 years.

In addition, USTR is seeking public comments on the proposed tariffs on ship-to-shore cranes and other cargo handling equipment, in line with the President’s Maritime Executive Order.

To view the Federal Register Notice, click here.

The deadline to submit a request to appear at the hearing is May 8, 2025.

Comments in response to this notice can be submitted or accessed here.

Background

Section 301 of the Trade Act of 1974, as amended (Trade Act), is designed to address unfair foreign practices affecting U.S. commerce. The Section 301 provisions of the Trade Act provide a domestic procedure through which interested persons may petition the U.S. Trade Representative to investigate a foreign government act, policy, or practice and take appropriate action. Section 301(b) may be used to respond to unreasonable or discriminatory foreign government acts, policies, and practices that burden or restrict U.S. commerce.

On March 12, 2024, five national labor unions filed a petition requesting an investigation into the acts, policies, and practices of China targeting the maritime, logistics, and shipbuilding sectors for dominance. The five petitioner unions are:

• the United Steel, Paper and Forestry, Rubber, Manufacturing, Energy, Allied Industrial and Service Workers International Union, AFL-CIO CLC (“USW”);
• the International Association of Machinists and Aerospace Workers (“IAM”);
• the International Brotherhood of Boilermakers, Iron Ship Builders, Blacksmiths, Forgers and Helpers, AFL-CIO/CLC (“IBB”);
• the International Brotherhood of Electrical Workers (“IBEW”); and
• the Maritime Trades Department, AFL-CIO (“MTD”).

Pursuant to Section 302(a)(2) of the Trade Act, the U.S. Trade Representative reviewed the allegations in the petition and determined to initiate an investigation regarding the issues raised in the petition. On April 17, 2024, the U.S. Trade Representative requested consultations with the government of China.

In light of the information obtained during the investigation and taking into account public comments, as well as the advice of the interagency Section 301 Committee and advisory committees, the U.S. Trade Representative determined that China’s targeting of the maritime, logistics, and shipbuilding sectors for dominance is unreasonable and burdens or restricts U.S. commerce and is therefore actionable under Sections 301(b) and 304(a) of the Trade Act.

Specifically, USTR found China’s targeting for dominance unreasonable because it displaces foreign firms, deprives market-oriented businesses and their workers of commercial opportunities, and lessens competition and creates dependencies on China, increasing risk and reducing supply chain resilience. China’s targeting for dominance is also unreasonable because of Beijing’s extraordinary control over its economic actors and these sectors.

USTR found that China’s targeting for dominance burdens or restricts U.S. commerce by undercutting business opportunities for and investments in the U.S. maritime, logistics, and shipbuilding sectors; restricting competition and choice; creating economic security risks from dependence and vulnerabilities in sectors critical to the functioning of the U.S. economy; and undermining supply chain resilience.

On February 21, 2025, USTR issued a Federal Register notice proposing certain responsive action, including service fees and restrictions on certain maritime transport services. By statute, the U.S. Trade Representative must determine what action to take by April 17, 2025.

A copy of the petition and other public documents associated with this investigation are available here. USTR’s public report on the investigation is available here, and the U.S. Trade Representative’s determination is available here.

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from: federalregister.gov

By the authority vested in me as President by the Constitution and the laws of the United States of America, including the International Emergency Economic Powers Act (50 U.S.C. 1701 et seq.) (IEEPA), the National Emergencies Act (50 U.S.C. 1601 et seq.), section 604 of the Trade Act of 1974, as amended (19 U.S.C. 2483), and section 301 of title 3, United States Code, I hereby determine and order:

Section 1 . Background. In Executive Order 14257 of April 2, 2025 (Regulating Imports With a Reciprocal Tariff to Rectify Trade Practices that Contribute to Large and Persistent Annual United States Goods Trade Deficits), I declared a national emergency arising from conditions reflected in large and persistent annual U.S. goods trade deficits, and imposed additional ad valorem duties that I deemed necessary and appropriate to deal with that unusual and extraordinary threat, which has its source in whole or substantial part outside the United States, to the national security and economy of the United States. Section 4(b) of Executive Order 14257 provided that “[s]hould any trading partner retaliate against the United States in response to this action through import duties on U.S. exports or other measures, I may further modify the [Harmonized Tariff Schedule of the United States] to increase or expand in scope the duties imposed under this order to ensure the efficacy of this action.”

In the Executive Order dated April 8, 2025 (Amendment to Reciprocal Tariffs and Updated Duties As Applied to Low-Value Imports from the People’s Republic of China), pursuant to section 4(b) of Executive Order 14257, I ordered modification of the Harmonized Tariff Schedule of the United States (HTSUS) to raise the applicable ad valorem duty rate for imports from the People’s Republic of China (PRC) established in Executive Order 14257, in recognition of the fact that the PRC announced that it would retaliate against the United States in response to Executive Order 14257.

On April 9, 2025, the State Council Tariff Commission of the PRC announced that, in response to the Executive Order dated April 8, 2025, an 84 percent tariff would be imposed on all goods imported into the PRC originating from the United States, effective at 12:01 a.m. on April 10, 2025. Pursuant to section 4(b) of Executive Order 14257, I have determined that it is necessary and appropriate to address the national emergency declared in that order by modifying the HTSUS and taking other actions to increase the duties imposed on the PRC in response to this latest retaliation. In my judgment, this modification is necessary and appropriate to effectively address the threat to U.S. national and economic security posed by the PRC’s contribution to the conditions reflected in large and persistent trade deficits, including PRC industrial policies that have produced systemic excess manufacturing capacity in the PRC and suppressed U.S. domestic manufacturing capacity, which conditions are made worse by the PRC’s recent actions.

Section 4(c) of Executive Order 14257 provided that, “[s]hould any trading partner take significant steps to remedy non-reciprocal trade arrangements and align sufficiently with the United States on economic and national security matters, I may further modify the HTSUS to decrease or limit in scope the duties imposed under this order.” Since I signed Executive Order 14257, in contrast to the PRC’s actions, more than 75 other foreign trading partners, including countries enumerated in Annex I to Executive Order 14257, have approached the United States to address the lack of trade reciprocity in our economic relationships and our resulting national and economic security concerns. This is a significant step by these countries toward remedying non-reciprocal trade arrangements and aligning sufficiently with the United States on economic and national security matters.

Pursuant to section 4(c) of Executive Order 14257, I have determined that it is necessary and appropriate to address the national emergency declared in that order by modifying the HTSUS to temporarily suspend, for a period of 90 days, except with respect to the PRC, application of the individual ad valorem duties imposed for foreign trading partners listed in Annex I to Executive Order 14257, and to instead impose on articles of all such trading partners an additional ad valorem rate of duty as set forth herein, pursuant to the terms of, and except as otherwise provided in, Executive Order 14257, as modified by this order.

Sec. 2 . Suspension of Country-Specific Ad Valorem Rates of Duty. Effective with respect to goods entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. eastern daylight time on April 10, 2025, enforcement of the second paragraph of section 3(a) of Executive Order 14257 is suspended until 12:01 a.m. eastern daylight time on July 9, 2025. Effective at 12:01 a.m. eastern daylight time on April 10, 2025, and until 12:01 a.m. eastern daylight time on July 9, 2025, all articles imported into the customs territory of the United States from the trading partners enumerated in Annex I to Executive Order 14257 shall be, consistent with law, subject to an additional ad valorem rate of duty of 10 percent, subject to all applicable exceptions set forth in Executive Order 14257.

Sec. 3 . Tariff Modifications. In recognition of the fact that the PRC has announced that it will retaliate again against the United States in response to the Executive Order dated April 8, 2025, which amended Executive Order 14257, and in recognition of the sincere intentions by many other trading partners to facilitate a resolution to the national emergency declared in Executive Order 14257, the HTSUS shall be modified as follows:

Effective with respect to goods entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. eastern daylight time on April 10, 2025:

(a) heading 9903.01.25 of the HTSUS shall be amended by deleting the article description and by inserting “Articles the product of any country, except for products described in headings 9903.01.26-9903.01.33, and except as provided for in heading 9903.01.34, and except for articles the product of China, including Hong Kong and Macau, as described in heading 9903.01.63 that are entered for consumption, or withdrawn from warehouse for consumption, after 12:01 a.m. eastern daylight time on April 10, 2025, and that were not in transit on the final mode of transit prior to 12:01 a.m. eastern daylight time on April 10, 2025, as provided for in subdivision (v) of U.S. note 2 to this subchapter . . . . . . .” in lieu thereof;

(b) heading 9903.01.63 of the HTSUS shall be amended by deleting “84%” each place that it appears and by inserting “125%” in lieu thereof, and by deleting “April 9, 2025,” and by inserting “April 10, 2025” in lieu thereof;

(c) subdivision (v)(xiii)(10) of U.S. note 2 to subchapter III of chapter 99 of the HTSUS shall be amended by deleting “84%”, and inserting “125%” in lieu thereof, and subdivision (v)(xiii) of U.S. note 2 to subchapter III of chapter 99 of the HTSUS shall be amended by deleting “April 9, 2025,” and by inserting “April 10, 2025,” in lieu thereof; and

(d) headings 9903.01.43-9903.01.62 and 9903.01.64-9903.01.76 are hereby suspended, and subdivisions (v)(xiii)(i)-(ix) and (xi)-(lvii) of U.S. note 2 to subchapter III of chapter 99 of the HTSUS are hereby suspended for a period of 90 days beginning at 12:01 a.m. on April 10, 2025.

Sec. 4 . De Minimis Tariff Increase. To ensure that the imposition of tariffs pursuant to section 3 of this order is not circumvented and that the purpose of Executive Order 14257, as modified by the Executive Order dated April 8, 2025, and this order are not undermined, I also deem it necessary and appropriate to:

(a) increase the ad valorem rate of duty set forth in section 2(c)(i) of Executive Order 14256 of April 2, 2025 (Further Amendment to Duties Addressing the Synthetic Opioid Supply Chain in the People’s Republic of China as Applied to Low-Value Imports), as modified by the Executive Order dated April 8, 2025, from 90 percent to 120 percent;

(b) increase the per postal item containing goods duty in section 2(c)(ii) of Executive Order 14256, as modified by the Executive Order dated April 8, 2025, that is in effect on or after 12:01 a.m. eastern daylight time on May 2, 2025, and before 12:01 a.m. eastern daylight time on June 1, 2025, from 75 dollars to 100 dollars; and

(c) increase the per postal item containing goods duty in section 2(c)(ii) of Executive Order 14256, as modified by the Executive Order dated April 8, 2025, that is in effect on or after 12:01 a.m. eastern daylight time on June 1, 2025, from 150 dollars to 200 dollars.

Sec. 5 . Implementation. The Secretary of Commerce, the Secretary of Homeland Security, and the United States Trade Representative, as applicable, in consultation with the Secretary of State, the Secretary of the Treasury, the Assistant to the President for Economic Policy, the Senior Counselor for Trade and Manufacturing, the Assistant to the President for National Security Affairs, and the Chair of the International Trade Commission, are directed to take all necessary actions to implement and effectuate this order, consistent with applicable law, including through temporary suspension or amendment of regulations or notices in the Federal Register and adopting rules and regulations, and are authorized to take such actions, and to employ all powers granted to the President by IEEPA, as may be necessary to implement this order. Each executive department and agency shall take all appropriate measures within its authority to implement this order.

Sec. 6 . General Provisions. (a) Nothing in this order shall be construed to impair or otherwise affect:

(i) the authority granted by law to an executive department, agency, or the head thereof; or

(ii) the functions of the Director of the Office of Management and Budget relating to budgetary, administrative, or legislative proposals.

(b) This order shall be implemented consistent with applicable law and subject to the availability of appropriations.

(c) This order is not intended to, and does not, create any right or benefit, substantive or procedural, enforceable at law or in equity by any party against the United States, its departments, agencies, or entities, its officers, employees, or agents, or any other person.

THE WHITE HOUSE, April 9, 2025.

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Key Date: (d) headings 9903.01.43-9903.01.62 and 9903.01.64-9903.01.76 are hereby suspended, and subdivisions (v)(xiii)(i)-(ix) and (xi)-(lvii) of U.S. note 2 to subchapter III of chapter 99 of the HTSUS are hereby suspended for a period of 90 days beginning at 12:01 a.m. on April 10, 2025 (until 12:01 a.m. July 9, 2025) Annex III, which lists the specific HTS codes affected by this Federal Register entry, Sec 3(d):

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Clarification of Exceptions Under Executive Order 14257 of April 2, 2025, as Amended

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from: whitehouse.gov

MEMORANDUM FOR THE SECRETARY OF STATE

THE SECRETARY OF THE TREASURY

THE SECRETARY OF COMMERCE

THE SECRETARY OF HOMELAND SECURITY

THE UNITED STATES TRADE REPRESENTATIVE

THE ASSISTANT TO THE PRESIDENT FOR ECONOMIC POLICY

THE ASSISTANT TO THE PRESIDENT FOR NATIONAL SECURITY AFFAIRS

THE SENIOR COUNSELOR TO THE PRESIDENT FOR TRADE AND MANUFACTURING

THE CHAIR OF THE UNITED STATES INTERNATIONAL TRADE COMMISSION

SUBJECT:      Clarification of Exceptions Under Executive

Order 14257 of April 2, 2025, as Amended

In Executive Order 14257 of April 2, 2025 (Regulating Imports With a Reciprocal Tariff to Rectify Trade Practices that Contribute to Large and Persistent Annual United States Goods Trade Deficits), I declared a national emergency arising from conditions reflected in large and persistent annual U.S. goods trade deficits, and imposed additional ad valorem duties that I deemed necessary and appropriate to deal with that unusual and extraordinary threat, which has its source in whole or substantial part outside the United States, to the national security and economy of the United States.

In Executive Order 14257, I stated that certain goods are not subject to the ad valorem rates of duty under that order. One of those excepted products is “semiconductors.” The subsequent orders issued in connection with Executive Order 14257 — i.e., Executive Order 14259 of April 8, 2025 (Amendment to Reciprocal Tariffs and Updated Duties as Applied to Low-Value Imports from the People’s Republic of China), and the Executive Order of April 9, 2025 (Modifying Reciprocal Tariff Rates to Reflect Trading Partner Retaliation and Alignment), (Subsequent Orders) — incorporate the exceptions in Executive Order 14257, including for “semiconductors.”

That term’s meaning includes the products classified in the following headings and subheadings of the Harmonized Tariff Schedule of the United States (HTSUS):

• 8471
• 847330
• 8486
• 85171300
• 85176200
• 85235100
• 8524
• 85285200
• 85411000
• 85412100
• 85412900
• 85413000
• 85414910
• 85414970
• 85414980
• 85414995
• 85415100
• 85415900
• 85419000
• 8542

To the extent that the HTSUS does not currently fully reflect the products listed above as excepted from the ad valorem duties imposed under Executive Order 14257 and the Subsequent Orders, the HTSUS shall be modified by inserting in numerical order the headings and subheadings listed above into subdivision (v)(iii) of U.S. note 2 to subchapter III of chapter 99, effective as of 12:01 a.m. eastern daylight time on April 5, 2025. Any duties that were collected at or after 12:01 a.m. eastern daylight time on April 5, 2025, pursuant to Executive Order 14257 and the Subsequent Orders, on imports that are excepted under Executive Order 14257 and the Subsequent Orders because they are “semiconductors,” as explained in this memorandum, shall be refunded in accordance with U.S. Customs and Border Protection’s standard procedures for such refunds.

As explained in Executive Order 14257 and the Subsequent Orders, the Secretary of Commerce and the United States Trade Representative, in consultation with the Secretary of State, the Secretary of the Treasury, the Secretary of Homeland Security, the Assistant to the President for Economic Policy, the Assistant to the President for National Security Affairs, the Senior Counselor to the President for Trade and Manufacturing, and the Chair of the United States International Trade Commission, are authorized to employ all powers granted to the President by the International Emergency Economic Powers Act (50 U.S.C. 1701 et seq.) as may be necessary to implement Executive Order 14257 and the Subsequent Orders. Measures taken to implement Executive Order 14257 and the Subsequent Orders shall be done in accordance with this memorandum.

DONALD J. TRUMP

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Trump Announces 90-day Pause on Most Tariffs,

Raises China Tariffs

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from: ap.com

What to know:

• President Donald Trump on Wednesday abruptly backed down on his tariffs on most nations for 90 days, but raised his duty rate on Chinese imports to 125%.
• Trump announces pause on Truth Social: Trump said that because so many countries had “not retaliated” against his latest crank higher in tariffs, he said, “I have authorized a 90 day PAUSE, and a substantially lowered Reciprocal Tariff during this period, of 10%, also effective immediately. Thank you for your attention to this matter!”
• Treasury Sec. Bessent says Trump will keep 10% import tariffs: Treasury Secretary Scott Bessent told reporters that Trump was pausing his so-called ‘reciprocal’ tariffs on most of the country’s biggest trading partners but maintaining his 10% tariff on nearly all global imports.
• Global markets react: Global markets surged on the development, but the precise details of Trump’s plans to ease tariffs on non-China trade partners were not immediately clear.

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Trump’s Truth Social Statement in Full:

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Tariffs Recap/Additional Explanation & Annex III Announced

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from: STRTrade.com

President Trump issued an executive order April 2 imposing additional tariffs at varying rates on imports from all countries. These tariffs will take effect within the next few days.

Tariffs

The U.S. will levy an additional 10 percent tariff on all imports from all trading partners, effective with respect to goods entered or withdrawn from warehouse for consumption on or after 12:01 a.m. EDT on April 5. However, this tariff will not apply to goods that are (1) loaded onto a vessel at the port of loading and in transit on the final mode of transit before that time and (2) entered or withdrawn from warehouse for consumption after that time.

However, several dozen countries (complete list here) will be subject to additional tariffs of 11-50 percent, including the following.

– 49 percent for Cambodia

– 48 percent for Laos

– 46 percent for Vietnam

– 37 percent for Bangladesh

– 34 percent for China

– 32 percent for Taiwan

– 32 percent for Indonesia

– 32 percent for Switzerland

– 31 percent for South Africa

– 27 percent for India

– 26 percent for South Korea

– 24 percent for Japan

– 20 percent for the European Union

These higher tariffs will be effective with respect to goods entered or withdrawn from warehouse for consumption on or after 12:01 a.m. EDT on April 9. However, they will not apply to goods that are (1) loaded onto a vessel at the port of loading and in transit on the final mode of transit before that time and 92) entered or withdrawn from warehouse for consumption after that time.

The additional tariffs will be assessed in addition to any other applicable duties, fees, taxes, exactions, or charges and will remain in place until the president determines that “the underlying conditions described [in the EO] are satisfied, resolved, or mitigated.”

According to the EO, the president may increase or expand in scope the additional tariffs if (1) they are deemed to not be effective in resolving the emergency conditions (e.g., a continued increase in the overall U.S. trade deficit or “the recent expansion of non-reciprocal trade arrangements by U.S. trading partners” in a manner that threatens U.S. economic and national security interests), (2) any trading partner retaliates through import duties on U.S. goods or other measures, or (3) U.S. manufacturing capacity and output continues to worsen.

On the other hand, the tariffs may be decreased or limited in scope if any trading partner “takes significant steps to remedy non-reciprocal trade arrangements and align sufficiently with the United States on economic and national security matters.”

Goods from Canada and Mexico are exempt from reciprocal tariffs until such time as the IEEPA Border tariffs are terminated or suspended, at which time only USMCA qualifying goods will be exempt from these tariffs and non-USMCA goods will be subject to a 12% reciprocal tariff.

Exclusions

The EO specifies that the additional tariffs will apply only to the non-U.S. content of a subject article provided that at least 20 percent of the article’s value is U.S.-originating. “U.S. content” refers to the value of an article attributable to the components produced entirely, or substantially transformed in, the U.S. The EO authorizes U.S. Customs and Border Protection to require the collection of such information and documentation regarding an imported article, including with the entry filing, as is necessary to enable it to ascertain and verify (1) the value of the U.S. content of an article and (2) whether an article is substantially finished in the U.S.

The EO excludes the following from the additional tariffs.

– all articles encompassed by 50 USC 1702(b) (e.g., communications, donations, and informational materials)

– all articles and derivatives of steel and aluminum already subject to Section 232 duties

– all automobiles and automotive parts already subject to Section 232 duties

– copper, pharmaceuticals, semiconductors, lumber articles, certain critical minerals, and energy and energy products

– all articles from a trading partner subject to Column 2 duty rates

– all articles that may become subject to duties pursuant to future Section 232 actions

De Minimis

The EO states that duty-free de minimis treatment will remain available for all goods subject to the increased tariffs (except those imported from China) until the commerce secretary notifies the president that adequate systems are in place to “fully and expeditiously process and collect” revenue from these tariffs for articles otherwise eligible for de minimis treatment.

Authority

The tariff increases are being imposed under the International Emergency Economic Powers Act following the EO’s declaration of a national emergency with respect to the “unusual and extraordinary threat” to U.S. national security posed by “underlying conditions, including a lack of reciprocity in our bilateral trade relationships, disparate tariff rates and non-tariff barriers, and U.S. trading partners’ economic policies that suppress domestic wages and consumption, as indicated by large and persistent annual U.S. goods trade deficits.” According to the EO, these deficits reflect “asymmetries in trade relationships” that (1) have contributed to the atrophy of domestic production capacity, especially that of the U.S. manufacturing and defense-industrial base, and (2) impact U.S. producers’ ability to export “and, consequentially, their incentive to produce.”

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Also, Annex III announced April 4, 2025

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New Reciprocal Tariff Policy & Trade Adjustments

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from: whitehouse.gov

Key points:
I have declared a national emergency arising from conditions reflected in large and persistent annual U.S. goods trade deficits, which have grown by over 40 percent in the past 5 years alone, reaching $1.2 trillion in 2024. This trade deficit reflects asymmetries in trade relationships that have contributed to the atrophy of domestic production capacity, especially that of the U.S. manufacturing and defense-industrial base. 

Sec. 2. Reciprocal Tariff Policy. 
It is the policy of the United States to rebalance global trade flows by imposing an additional ad valorem duty on all imports from all trading partners except as otherwise provided herein. The additional ad valorem duty on all imports from all trading partners shall start at 10 percent and shortly thereafter, the additional ad valorem duty shall increase for trading partners enumerated in Annex I to this order at the rates set forth in Annex I to this order. These additional ad valorem duties shall apply until such time as I determine that the underlying conditions described above are satisfied, resolved, or mitigated.  

Sec. 3. Implementation.
(a) Except as otherwise provided in this order, all articles imported into the customs territory of the United States shall be, consistent with law, subject to an additional ad valorem rate of duty of 10 percent. Such rates of duty shall apply with respect to goods entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. eastern daylight time on April 5, 2025, except that goods loaded onto a vessel at the port of loading and in transit on the final mode of transit before 12:01 a.m. eastern daylight time on April 5, 2025, and entered for consumption or withdrawn from warehouse for consumption after 12:01 a.m. eastern daylight time on April 5, 2025, shall not be subject to such additional duty. 

Sec. 3. (b) The following goods as set forth in Annex II to this order, consistent with law, shall not be subject to the ad valorem rates of duty under this order: (i) all articles that are encompassed by 50 U.S.C. 1702(b); (ii) all articles and derivatives of steel and aluminum subject to the duties imposed pursuant to section 232 of the Trade Expansion Act of 1962 and proclaimed in Proclamation 9704 of March 8, 2018 (Adjusting Imports of Aluminum Into the United States), as amended, Proclamation 9705 of March 8, 2018 (Adjusting Imports of Steel Into the United States), as amended, and Proclamation 9980 of January 24, 2020 (Adjusting Imports of Derivative Aluminum Articles and Derivative Steel Articles Into the United States), as amended, Proclamation 10895 of February 10, 2025 (Adjusting Imports of Aluminum Into the United States), and Proclamation 10896 of February 10, 2025 (Adjusting Imports of Steel into the United States); (iii) all automobiles and automotive parts subject to the additional duties imposed pursuant to section 232 of the Trade Expansion Act of 1962, as amended, and proclaimed in Proclamation 10908 of March 26, 2025 (Adjusting Imports of Automobiles and Automobile Parts Into the United States); (iv) other products enumerated in Annex II to this order, including copper, pharmaceuticals, semiconductors, lumber articles, certain critical minerals, and energy and energy products; (v) all articles from a trading partner subject to the rates set forth in Column 2 of the Harmonized Tariff Schedule of the United States (HTSUS); and (vi) all articles that may become subject to duties pursuant to future actions under section 232 of the Trade Expansion Act of 1962.

Sec. 3. (c) The rates of duty established by this order are in addition to any other duties, fees, taxes, exactions, or charges applicable to such imported articles, except as provided in subsections (d) and (e) of this section below. 

Sec. 3. (d) With respect to articles from Canada, I have imposed additional duties on certain goods to address a national emergency resulting from the flow of illicit drugs across our northern border pursuant to Executive Order 14193 of February 1, 2025 (Imposing Duties To Address the Flow of Illicit Drugs Across Our Northern Border), as amended by Executive Order 14197 of February 3, 2025 (Progress on the Situation at Our Northern Border), and Executive Order 14231 of March 2, 2025 (Amendment to Duties To Address the Flow of Illicit Drugs Across Our Northern Border). With respect to articles from Mexico, I have imposed additional duties on certain goods to address a national emergency resulting from the flow of illicit drugs and illegal migration across our southern border pursuant to Executive Order 14194 of February 1, 2025 (Imposing Duties To Address the Situation at Our Southern Border), as amended by Executive Order 14198 of February 3, 2025 (Progress on the Situation at Our Southern Border), and Executive Order 14227 of March 2, 2025 (Amendment to Duties To Address the Situation at Our Southern Border). As a result of these border emergency tariff actions, all goods of Canada or Mexico under the terms of general note 11 to the HTSUS, including any treatment set forth in subchapter XXIII of chapter 98 and subchapter XXII of chapter 99 of the HTSUS, as related to the Agreement between the United States of America, United Mexican States, and Canada (USMCA), continue to be eligible to enter the U.S. market under these preferential terms. However, all goods of Canada or Mexico that do not qualify as originating under USMCA are presently subject to additional ad valorem duties of 25 percent, with energy or energy resources and potash imported from Canada and not qualifying as originating under USMCA presently subject to the lower additional ad valorem duty of 10 percent. 

Link to the Executive Order

Link to the Annex that shows each country’s additional ad valorem duty
https://www.whitehouse.gov/presidential-actions/2025/04/regulating-imports-with-a-reciprocal-tariff-to-rectify-trade-practices-that-contribute-to-large-and-persistent-annual-united-states-goods-trade-deficits/

Link to Annex II that shows items that shall not be subject to the ad valorem rates of duty under this order
https://www.whitehouse.gov/wp-content/uploads/2025/04/Annex-I.pdf

BOC recommends you read the entire Executive Order, in its entirety.
https://www.whitehouse.gov/wp-content/uploads/2025/04/Annex-II.pdf

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25% Tariffs on imports from Canada & Mexico – China Tariffs Doubled to 20% 

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Please find the below notices from U.S. Customs and Border Protection:

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Tariffs on Canada and Mexico Starting March 4, and
 Additional 10% Tariffs on Imports from China

Excerpted from AP.org, March 3, 2025

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WASHINGTON (AP) — President Donald Trump plans to impose tariffs on Canada and Mexico starting Tuesday, in addition to doubling the 10% universal tariff charged on imports from China.

In a Truth Social post Thursday, Trump said illicit drugs such as fentanyl are being smuggled into the United States at “unacceptable levels” and that import taxes would force other countries to crack down on the trafficking.

“We cannot allow this scourge to continue to harm the USA, and therefore, until it stops, or is seriously limited, the proposed TARIFFS scheduled to go into effect on MARCH FOURTH will, indeed, go into effect, as scheduled,” the Republican president wrote. “China will likewise be charged an additional 10% Tariff on that date.”

The prospect of escalating tariffs has already thrown the global economy into turmoil, with consumers expressing fears about inflation worsening and the auto sector and other domestic manufacturers suffering if Trump raises import taxes. But Trump has also at times engaged in aggressive posturing only to give last-minute reprieves, previously agreeing to a 30-day suspension of the Canada and Mexico tariffs that were initially supposed to start in February.

Trump plans tariffs on Mexico and Canada for Tuesday, while doubling existing 10% tariffs on China

At this point, we have no further information as to how these changes will be implemented but we will continue to advise as we receive updates.

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Wage increases and automation protections: 
ILA agrees on six-year contract 

Excerpted from workboat.com, February 27, 2025 By Chuck Chiang

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The International Longshoremen’s Association (ILA) has ratified a new six-year master contract with the United States Maritime Alliance (USMX), securing labor stability at Atlantic and Gulf Coast ports through September 2030. With nearly 99% of members voting in favor, ILA noted the contract includes record wage increases and safeguards against automation.

The extension to the master contract will be effective Oct. 1, 2024, through Sept. 30, 2030, ILA said in a Feb. 25 press release. ILA president Harold Daggett, who served as the union’s chief negotiator, called the contract the strongest in the organization’s history.

“It was a tough contract to negotiate,” Daggett said. “But the ILA stayed strong and unified, successfully winning the greatest contract in ILA history and maybe the strongest collective bargaining agreement ever negotiated by any union.”

The contract includes a 62% wage increase, accelerated raises for new ILA workers, and full container royalty funds returned to the union. Additional benefits include increased contributions to retirement plans, strengthened healthcare provisions under the MILA National Health Plan program, and a resolution to the vacation and holiday dispute.

A key component of the agreement is its firm stance against automation, ensuring job security for dockworkers. The ILA had identified automation as a major threat to its members and successfully negotiated full protections against job-displacing technology.

Daggett credited former U.S. President Donald Trump for his involvement in the negotiations. A December 2024 meeting at Mar-A-Lago between Trump and ILA leadership helped solidify the union’s stance against automation, providing momentum for the final agreement.

The ILA also acknowledged USMX lead negotiator Paul DeMaria for his role in reaching a settlement and avoiding a second strike. “Paul was uniquely qualified to move negotiations in the right direction,” Daggett said.

With the contract now ratified, the ILA statement noted the association now aims to strengthen their partnership with USMX, which it said would promote growth at ILA ports and expand the union’s influence among dockworker organizations globally. The formal signing of the contract is scheduled for March 11, 2025.

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