WHAT’S THE LATEST

China: On April 8, President Trump issued an executive order amending two prior executive orders from April 2 to increase tariffs on imports from China. That was subsequently further amended by an executive order on April 9. The latest order:

  • Suspends the country-specific reciprocal tariffs on all countries, except China, for 90 days until 12:01 a.m. ET on July 9.
  • Maintains the broader 10% tariff increase on all countries (except for Canada and Mexico) between 12:01 a.m. ET on April 10 and 12:01 a.m. ET on July 9.
  • Increases the tariff on all Chinese imports to an additional 125% at 12:01 a.m. ET on April 10.
    • On April 11, China announced it was matching this increase and putting a 125% tariff on U.S. imports beginning on April 12.
  • As it relates to de minimis goods:
    • The ad valorem duty is increased to 120%.
    • The per postal item containing goods duty is increased:
      • To $100 effective May 2 at 12:01 a.m. ET until June 1 at 12:01 a.m. ET.
      • To $200 effective June 1 at 12:01 a.m. ET.

European Union: On April 9, the European Union (EU) approved a plan on retaliatory tariffs up to 25% on certain U.S. imports that become effective in several phases beginning April 15.

  • NOTE: These tariffs are currently paused for 90 days mirroring President Trump’s announcement of the United States pausing reciprocal tariffs for 90 days.

WHAT WE KNOW

  • On April 2, President Trump announced the imposition of reciprocal tariffs of 34% on China, which went into effect at 12:01 a.m. ET on April 9.
  • On April 4, China announced it would apply an equal 34% tariff on all U.S. goods beginning 24 hours later at 12:01 a.m. ET on April 10 (except for goods shipped prior to April 10 and imported by May 13).
  • In response to China’s announcement, on April 8, President Trump issued an executive order to increase tariffs on imports from China:
    • An additional 50% tariff on top of the originally announced reciprocal tariff of 34%, equaling a new 84% tariff on Chinese imports, including Hong Kong and Macau.
    • The de minimis tariff increased from 30% to 90%.
  • Combined with the previous 20% tariffs imposed by President Trump earlier this year, tariffs on imports from China stood at 104%. These tariffs are in addition to column one duty rates based on tariff classification, and Section 301 duties implemented in the first Trump administration.
  • On April 9, China announced it would match the additional tariff increase and raise their tariff on U.S. imports to 84%.
  • On April 9, the EU approved retaliatory tariffs on U.S. imports into the region. The tariffs are up to 25% on a range of products including steel, textiles, grains and meat. The new tariffs are effective in stages, first on April 15 and then on May 16. A third stage, effective December 1 on several products including soybeans, was also approved.
  • Late on April 9, President Trump announced a 90-day pause in reciprocal tariffs on all countries except China.
  • The broader 10% tariff on all countries (except for Canada and Mexico) remains.
  • Following the President’s 90-day pause announcement, the EU followed suit and paused their retaliatory tariffs for 90 days.
  • On April 9, President Trump issued another executive order to further increase tariffs on imports from China to 145% (125% plus the prior 20%) and the de minimis tariff to 120%. 
  • On April 11, China announced it was also further increasing its tariff on U.S. imports to 125% beginning on April 12. 

WHAT'S NEXT

SEKO's Guidance

This situation continues to be 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 additional counties prepare to announce retaliatory tariffs in the coming days and weeks, as well as the potential for quickly evolving deals to be announced, 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.