Reciprocal Tariffs Levied on All Countries

• 55 countries are assigned unique individual rates
• China, Hong Kong, and Macau share one rate
• The European Union is assigned one rate for its 27 member countries

The following information is based on the Executive Order (EO) published on the White House website and is subject to change as additional information is released. The corresponding Federal Register will provide additional details when it is posted, which will be followed by the U.S. Customs and Border Protection (CBP) CSMS operational messages. Schenker will continue to monitor for these updates and share details as they become known. Please reach out to your Schenker contact with questions.

Effective Date

• April 5, 2025 – The EO states the rate of 10% will begin on all imports from all trading partners.
  • In transit exception: Goods loaded onto a vessel at the port of loading and in transit on the final mode of transit before April 5, 2025 and entered or withdrawn for consumption on or after April 5, 2025.
• April 9, 2025 – The EO states the duty increases for all countries listed in an Annex, which covers 56 countries plus the EU for the rate specified for each country.
  • In transit exception: Goods loaded onto a vessel at the port of loading and in transit on the final mode of transit before April 9, 2025 and entered or withdrawn for consumption on or after April 9, 2025.

Exemptions

1. Certain donations for humanitarian relief
2.  Informational materials
3.  Steel and aluminum articles and derivative articles subject to Section 232 duties
4.  Automobiles and parts thereof subject to Section 232 duties
5.  Products listed in Annex II, including copper, pharmaceuticals, semiconductors, lumber articles, certain critical minerals, and energy and energy products
6.  Articles from a trading partner subject to the rates in Colum 2 of the HTSUS (Belarus, Cuba, North Korea, Russia)
7.  All articles that may become subject to future Section 232 duties
8.  Articles from Canada and Mexico, but with unique conditions
   1.  USMCA-eligible goods are exempt from this order, just as they are for the current IEEPA duties.
   2.  Goods not eligible for USMCA are exempt from this order and continue to pay 25% for the current IEEPA duties.
   3.  If the current IEEPA duties are terminated, this order will be invoked.
      1.  USMCA-eligible goods would be exempt.
      2. Goods not eligible for USMCA would be subject to 12% rate of duty, unless a new rate is assigned.
      3. This rate would not apply to the following:
         1. Energy or energy resources
         2. Potash
         3. Articles eligible for duty-free treatment under USMCA that is a part or component of an article substantially finished in the U.S.
9. Opportunity to exempt U.S. content
   1. If at least 20% of the value of an imported article is U.S. originating, this new duty would apply only to the non-U.S. content. “U.S. content” refers to the value of an article attributable to the components produced entirely, or substantially transformed in, the United States. CBP is authorized to require the collection of documentation to support such a claim.

Chapter 98
The EO is silent with regards to goods being entered under Chapter 98 provisions. It is anticipated such goods would be entered with the benefits associated with the various Chapter 98 provisions.

Free Trade Agreement / Preference Programs
Other than articles eligible for the USMCA (as noted above), articles that are eligible for other free trade agreement / preference programs are subject to the duties assessed under this order. While the claim can still be made to exempt the article from the regular rate of duty, the rate assessed to the country of origin as a reciprocal rate of duty is applicable and must be paid.

Foreign Trade Zone
Goods admitted into a FTZ on or after April 9, 2025 must be admitted as privileged foreign status, unless they are admitted under domestic status.

Drawback
The EO is silent with regards to eligibility for drawback, while other IEEPA orders have explicitly deemed such duties as ineligible for drawback.

Individual Rates
China is not exempted from this order like Canda and Mexico. Therefore, this duty stacks on top of other applicable duties, such as Section 301 and IEEPA, but would not be applied if the article is subject to a Section 232 duty.

• Example if article is on a Section 301 list with 25% rate of duty (some are at 7.5%, 50%, or 100%)
  • Section 301 duties 25%
  • IEEPA 20%
  • Reciprocal 34%
  • Total 79%
  • + Regular duty rate