Important Update on U.S. Trade Regulations

April 3, 2025 - We would like to inform you about a significant development in U.S. trade policy that may impact your business operations. On April 2, 2025, President Donald J. Trump signed an executive order implementing reciprocal tariffs to address trade practices contributing to large and persistent annual U.S. goods trade deficits. Key Points of the Executive Order:

• Reciprocal Tariffs: The order introduces tariffs that match those imposed by U.S. trading partners, aiming to create a level playing field for American manufacturers.
• National Emergency Declaration: The President has declared a national emergency due to the economic and national security threats posed by these trade deficits.
• Impact on Manufacturing: The deficits have led to the hollowing out of the U.S. manufacturing base and dependency on foreign adversaries for critical supply chains.
• Review of Trade Practices: The administration will continue to investigate and address unfair trade practices by other countries.
• USMCA Exemptions: Articles imported from Canada or Mexico that qualify as originating under USMCA will not be subject to additional ad valorem rates of duty. However, articles not qualifying under USMCA will face a 12% ad valorem rate of duty. These rates do not apply to energy resources, potash, or duty-free components of articles substantially finished in the U.S.

Additional Information:

• Except as noted below, all imported articles are subject to a 10% ad valorem IEEPA duty effective 12:01 a.m. ET on April 5. For goods that are loaded onto a vessel at the port of lading and in final mode of transit before that time, they will NOT be subject to the 10% duty upon entry into the U.S.
• The rates for countries in Annex I shall apply effective 12:01 a.m. ET on April 9. For goods that are loaded onto a vessel at the port of lading and in final mode of transit before that time, they will NOT be subject to the additional duty specified below upon entry into the U.S.
• Certain countries (Listed in Annex I) are subject to a tariff greater than 10%. For purposes of these tariffs, China includes Hong Kong and Macau. 
• The tariffs will target imports from numerous countries, including China, EU, Vietnam, Taiwan, Japan, India, South Korea, Thailand, Switzerland, Indonesia, Malaysia, United Kingdom, South Africa, Brazil, Bangladesh, Singapore, Israel, Philippines, Chile, Australia, Pakistan, and Sri Lanka.
• The White House has also announced a 25% tariff on imports of passenger vehicles and light trucks, effective April 3, and a 25% tariff on auto parts, effective May 3.

The President has issued an order that changes how low-value goods from China and Hong Kong are treated when imported into the United States. Previously, goods valued at $800 or less could enter the U.S. duty-free. Starting May 2, 2025, these goods will no longer be eligible for duty-free status and will be subject to additional duties. This means importers will need to pay tariffs on these low-value items, which could increase costs and require adjustments in their shipping and pricing strategies. Importers will also need to ensure proper documentation and compliance with new regulations to avoid penalties. More details of the reciprocal tariffs are linked below from the White House and we are anticipating guidance from Customs and Border Protection (CBP) regarding their implementation. We recommend that all clients review their current trade practices and consult with our compliance experts to understand how these changes may affect your operations. Buckland will provide our clients with pertinent updates as soon as they are received. Details:

• WhiteHouse.gov Further Amendment to Duties Addressing the Synthetic Opioid Supply Chain in the People’s Republic of China as Applied to Low-Value Imports
• WhiteHouse.gov Regulating Imports with a Reciprocal Tariff to Rectify Trade Practices that Contribute to Large and Persistent Annual United States Goods Trade Deficits

For further details or assistance, please contact your Buckland representative. The information provided herein represents our current position on the subject matter. However, it is the responsibility of the importers to ensure compliance with all applicable laws and regulations. This information should not be relied upon as legal advice or as a substitute for professional consultation. We disclaim any liability for actions taken based on the information provided.