What is the status of the reciprocal tariffs that were announced on or around April 2 (“Liberation Day”)

• 10% applied to imports from all countries other than China until July 9
• 10% applied to imports from China until August 12

On April 9, President Trump issued an Executive Order pausing for 90-days the imposition of the country-specific tariffs r announced on Liberation Day and imposed under the International Emergency Economic Powers Act (“IEEPA”) that ranged between 10-50%. A 10% ad valorem “baseline” tariff was applied instead on imports from all countries except China until July 9.

On May 12, the Administration announced a separate 90-day pause of the 125% tariff rate and replacing it with a 10% tariff on Chinese goods until August 12 following agreement on a preliminary trade deal.

U.S. Customs and Border Protection (CBP) guidance for complying with the tariffs on most of the world can be found here, and on China here.

What is the status of the tariffs imposed on China to stem the flow of fentanyl and illegal border crossings?

• 20% applied to all imports from China

On March 3, President Trump issued an Executive Order increasing the previously applied tariff rate on all products from China from 10 percent to 20 percent initially imposed under IEEPA on February 4.

Didn’t the courts rule the President’s use of IEEPA for imposing tariffs was illegal?

On May 28, the Court of International Trade (CIT) ruled that the Administration exceeded IEEPA’s authority when it imposed unbound tariffs with vast economic and political significance, and enjoined (prohibited) the actions. The U.S. government quickly appealed this decision in the Court of Appeals for the Federal Circuit. A temporary stay issued by the Federal Circuit allows the tariffs to remain in effect while they decide to grant the government’s appeal.

How do the reciprocal tariffs relate to preexisting tariffs, taxes and duties?

The reciprocal tariffs are stacked on top of other trade remedy tariffs and normal Most-Favored Nation (“MFN”) duties. For example, the 10% tariff on Chinese imports is stacked on the 20% fentanyl IEEPA tariffs, plus Section 301 tariffs (if applicable), plus MFN duty. CBP guidance on the tariff stacking order can be found here.

Are products subject to Section 232 steel and aluminum and certain derivative products excluded from the IEEPA reciprocal tariffs?

No. Products subject to 232 tariffs were previously excluded from also having IEEPA reciprocal tariffs applied. This changed on June 4 as a result of Proclamation “Adjusting Imports of Aluminum and Steel into the United States”. The IEEPA reciprocal tariff 10% tariff is now applied to value of the non-metal content of the product, and the 25% Section 232 tariff is applied to the value of the metal content portion.

Are USMCA-qualifying products excluded from the IEEPA reciprocal tariffs?

Yes, Sec. 3(d) of the reciprocal tariff E.O. states: “… 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.”

Are products with mostly U.S. content excluded from the IEEPA reciprocal tariffs?

Yes, Sec. 3(f) of the reciprocal tariff E.O. states: “the ad valorem rates of duty set forth in this order shall apply only to the non-U.S. content of a subject article, provided at least 20 percent of the value of the subject article is U.S. originating.”

If, for example, a fishing lure is imported from overseas but is made primarily with components of U.S. origin (e.g., hooks, ball chains, etc.), the value of the U.S. materials in the product would be excluded from tariffs if they comprise at least 20% of the overall value of the product. CBP provided reporting guidance can be found here.

Are the IEEPA tariffs applied to products based on its country of manufacture, or the country it was last shipped from before arriving to the U.S.?

Tariffs are based on the product’s country of origin, not the country it’s shipped from. Customs has not yet released implementation guidance for the specific country-rates, but for the baseline rates, CPB Guidance Document #64649265 consistently uses the phrase “articles the product of (country).” 19 CFR § 134.1 defines country of origin as ”the country of manufacture, production, or growth of any article of foreign origin entering the United States.”

Do the IEEPA reciprocal tariffs apply to products coming from a foreign trade zone (FTZs)?

Yes. Reciprocal tariffs, as well as all other recent tariff actions, are levied at the same rates on products admitted to U.S. FTZs, regardless of whether they will be used for further manufacturing or warehousing/distribution.

Regarding the Section 232 tariff on aluminum derivatives, how is value of the aluminum derivative to be determined?

Customs valuation practices are codified under 19 USC 140a. CBP reminds to refer to this law in its Section 232 Tariff FAQ webpage, stating: “the value of the steel/aluminum content is the total price paid or payable for that content, which is the total payment (direct or indirect, and exclusive of any costs, charges, or expenses incurred for transportation, insurance, and related services incident to the international shipment of the merchandise from the country of exportation to the country of importation) made/to be made for the steel/aluminum content by the buyer to, or for the benefit of, the seller of the steel/aluminum content. Normally, this would be based on the invoice paid by the buyer of the steel/aluminum content to, or for the benefit of the seller of the steel/aluminum content.”

What products are subject to the 50% Section 232 tariffs on steel and aluminum, and their derivatives, and therefore excluded from the reciprocal tariffs?

The list can be found here, and CBP reporting guidance can be found here.

What is the status of the de minimis entry?

De minimis entry allows certain goods valued under $800 that are sent directly to one person, on one day, to enter into the U.S. duty, tariff and tax free.

President Trump announced the implementation of eliminating de minimis eligibility Chinese and Hong Kong-origin goods on May 2 in an Executive Order signed on April 2. Such action followed a previously issued E.O. that terminated de minimis for articles from China that was temporarily suspended. Additionally, the President also terminated de minimis entry for goods from all countries as part of its Liberation Day announcement, however will not implement the comprehensive termination until the Commerce Secretary notifies the President that “adequate systems” are in place to process shipments and collect tariff revenue.

Separately, Congress is actively working to advance legislation that will permanently codify the termination of de minimis entry for products from all countries starting July 2027. This action is included in the House-passed version of the H.R. 1, the One Big Beautiful Bill Act as a revenue raiser for tax cuts.

What is the First Sale Rule?

The First Sale Rule (Treasury Decision 96-87, January 2, 1997) allows importers to declare a lower customs value for certain types of qualifying importations. It permits companies to reduce their duties by entering goods at a lower value than the price actually paid to the foreign vendor, as long as the legal requirements for the program are met. For example, an item may be produced in China, sold to a middleman in Hong Kong, and in turn sold to a buyer/importer in Los Angeles; the First Sale Rule would allow the U.S. importer to declare the product’s value, for import duty purposes, as the price of the original China-Hong Kong transaction. ASA recently held a webinar on the First Sale rule, which is available to ASA members.