Hello Customers, Colleagues, and Friends…
We are writing to inform you of the implementation of new IEEPA Reciprocal Tariffs, which may significantly impact your upcoming import shipments. Below is a summary of how these new tariffs work and how they interact with existing trade measures. It is important we emphasize again the volatile nature of this information. THIS INFORMATION IS SUBJECT TO CHANGE AND IS CURRENT AS OF 4/9/25. Below is general information intended to inform you of the interactions of these tariffs. Each individual tariff has specifications and possible exemptions not listed in this notice.
IEEPA Tariffs Now in Effect
As of April 5, 2025, a 10% Baseline Tariff applies to all imported goods under the International Emergency Economic Powers Act (IEEPA). This tariff is separate from, and in addition to, any other tariffs already in place. This tariff applies to ALL (Other than USMCA goods) imports from countries not listed on the Annex I reciprocal tariff list.
Starting April 9, 2025, Reciprocal Tariffs—ranging from 11% to 74%—will be imposed on imports from countries with which the U.S. maintains significant trade imbalances. These stack on top of the 10% Baseline Tariff, depending on the country of origin.
How the primary additional tariffs Interact
- Standard rate of Duty (Designated by US HTS code. Not country of origin specific)
- Section 301 (+ 7.5% or 25% Tariff. Specific to Country of Origin – China. Went into effect in phases starting 2018. Stacks on all other listed duty/tariffs)
- IEEPA “Phentanyl” (+20% Tariff C/O China. Mexico and Canada remain exempt if USMCA qualification. +25% tariff if C/O Mexico or Canada and no USMA exemption. Stacks on all other listed duty/tariffs)
- Section 232 – (Steel, Aluminum + Passenger Autos / Auto Parts – Went into effect March 13th. +25% tariff. Not specific to Country of Origin. Continues as a distinct program and do not stack with subsequent IEEPA Baseline and Reciprocal tariffs.)
- IEEPA “Baseline” Tariff (10% for all countries not listed on reciprocal list. In effect 4/5/25. Applies to nearly all imports and stacks on all other listed tariffs except Section 232 tariffs and IEEPA Reciprocal Tariffs.
- IEEPA “Reciprocal” Tariff – (11%-74%): Identified in Annex I of executive order. Based on country-specific trade deficits. Does NOT Stack on top of 10% baseline tariff.
China-Specific Update
Beginning April 8, 2025, goods from China will be subject to the below tariff structure, bringing the total IEEPA tariff to 104%. We are pending confirmation of this implementation. As of End of Business Day 4/8/25 this was not confirmed by CBP.
China IEEPA
- (20% + 34% + 50% = 104%)
In-Transit Exemption
Goods that departed their country of export:
- Before April 5 may be exempt from the 10% Baseline IEEPA Tariff.
- Before April 9 may be exempt from the Reciprocal Tariffs.
Please don’t hesitate to reach out with questions or for clarification on how these changes may affect your business.
Sincerely, Your friends at Krenz & Hannan International