WHAT’S THE LATEST

On April 2, President Trump issued two executive orders invoking the International Economic Emergency Powers Act (IEEPA) authority. A summary of the new reciprocal tariffs imposed include:

  1. A 10% IEEPA tariff on all U.S. imports will take effect April 5 at 12:01 a.m. ET.
  2. Countries listed in Annex I will face tariffs greater than 10% starting April 9 at 12:01 a.m. ET.
  3. Goods already loaded and in transit before the respective effective dates will not be subject to the additional tariffs upon entry into the U.S.

 

Photo Credit: The White House

WHAT WE KNOW

The following goods are EXEMPT from IEEPA reciprocal tariffs:

  1. Personal use & humanitarian goods: Items such as personal-use goods, donations of food, clothing, medicine and informational materials under 50 U.S.C. 1702.
  2. Products already subject to Section 232 tariffs, including:

·       Steel and derivatives

·       Aluminum and derivatives

·       Autos and auto parts

  1. Products listed in Annex II, including:

·       Copper

·       Pharmaceuticals

·       Semiconductors

·       Lumber

·       Certain critical minerals

·       Energy and energy products

  1. Goods from countries subject to Column 2 Duty Rates (Cuba, North Korea, Russia, and Belarus).
  2. Products covered by future Section 232 actions.

Country-Specific Considerations

  • Canada & Mexico:
    • Temporarily exempt until IEEPA Border provisions change.
    • Non-United States-Mexico-Canada Agreement (USMCA) goods will be subject to a 12% tariff once IEEPA Border measures are lifted.
  • U.S. Content Exemption:
    • Goods containing at least 20% U.S. content (substantially transformed in the U.S.) qualify for exemption.
  • Section 321 De Minimis:
    • Goods - except those originating from China &Hong Kong - remain exempt until the Department of Commerce establishes a collection system.

SEKO’S GUIDANCE

This situation is rapidly evolving, and SEKO’s team is actively monitoring developments in real-time to ensure we have the latest information to guide our clients. As several counties prepare to announce retaliatory tariffs in the coming days and weeks, we have a plan in place to ensure your goods continue to move without disruption. More details to follow soon.
 
Take Action: In the meantime, you can schedule a free hour of consulting with our team of experts to ensure we keep your supply chain moving smoothly.  

If you have questions, please reach out to your SEKO representative, or email us at hello@sekologistics.com.