Update to Tariff Landscape under President Trump

This post updates our blogpost that described the tariff landscape as of April 2, 2025.

On April 9, 2025, President Trump issued an Executive Order (EO) 14266 modifying EO 14257 imposing “reciprocal” tariffs and further increasing country-specific tariffs against China.

First, the April 9 EO reduced all reciprocal tariff rates on countries (apart from China) to a baseline of 10% for 90 days, after which, absent any further modifications based on diplomatic negotiations during this pause, the rates would increase to the levels initially announced on April 2.  

This 10% baseline reciprocal tariff applies on top of any tariffs in place prior to President Trump’s April 2 EO, unless the relevant imports are subject to exceptions under the April 2 EO. 

Canada, Mexico, and China are subject to country-specific tariff rates.  Additionally, some goods are subject to sector-specific tariff rates instead of the reciprocal tariffs.  For example: 

• Steel products (25%);
• Aluminum products (25%); and
• Automobiles and auto parts (25%).

Sector-specific duties on copper, timber / lumber, pharmaceutical products, and semiconductors are currently being considered. 

Exemptions now include laptops, smartphones, and GPUs 

Certain goods are exempt from the reciprocal tariffs—e.g., exempt from the 10% baseline tariffs, the full rates currently subject to the 90-day pause, and the increased reciprocal tariff rate imposed on China, Hong Kong, and Macau.  These include:

• USMCA-compliant goods (as determined by the United States); 
• Informational materials — a required exclusion under IEEPA (50 U.S.C. 1702(b));
• Goods listed in Annex II (including copper, pharmaceuticals, semiconductors, lumber articles, certain critical minerals, and energy and energy products); 
• Goods under chapter 98 of the tariff schedule (mainly humanitarian items); 
• The value of US content of any goods subject to the reciprocal tariffs, if the goods have a minimum of 20% US content; and
• Laptops, smartphones, GPUs, and other products specified in CBP Guidance updated on April 11, 2025, though these exemptions may not be permanent.

Goods already subject to existing country-specific tariffs are exempt from the reciprocal tariffs.  These include:

• Goods from Canada and Mexico currently facing 10-25% country-specific tariffs; and
• Goods from certain sanctions-sensitive countries (Cuba, North Korea, Russia, and Belarus).

Second, President Trump increased the country-specific tariffs on imports from China, including products of Hong Kong and Macau, to 125% — to which China responded by raising tariffs on US goods to 125%.  This adds to the 20% country-specific tariffs on imports from China and Hong Kong.  As of writing, products from China and Hong Kong would face a minimum 145% tariff unless such products fall into one of the above-listed exceptions.