Reciprocal/Universal Tariffs Announced

President Trump announced on April 2^nd; the tariffs he has been forewarning us about the last few weeks. There are two types that will go into effect “Reciprocal tariffs” and “Universal tariffs.” The Universal tariffs have a duty of 10%, and will be levied against all countries effective on 12:01am. April 5^th. The Reciprocal tariffs become effective at 12:01am April 9^th, but for the time period between April 5 and April 9, the Universal tariffs of 10% will take effect. After April 9, the Reciprocal tariffs that are country specific in Annex I below, will take effect. Note these tariffs are in addition to any existing tariffs that are in effect at the time, for example China IEEPA 20%, section 301 duties of either 25% or 7.5%, and any anti-dumping/countervailing duties.

A provision was also made for certain exemptions to these tariffs as follows:

-any shipment that was loaded on board the export vessel in the final mode of transit to the U.S, and prior to the effective dates.

-steel/aluminum articles and autos/auto parts already subject to Section 232 tariffs;

           -copper, pharmaceuticals, semiconductors, and lumber articles;

           -all articles that may become subject to future Section 232 tariffs;

           -bullion

-energy and other certain minerals that are not available in the United     States.

 - Canada and Mexico products are not covered- preserves USMCA IEEPA Duty Free exemptions for USMCA-qualified products and 25% for non-qualified product.

 A list of the exempted articles, by tariff, can be found in the attached Annex II below.

Lastly, the China/Hong Kong de minimis will be terminated on May 2^nd.

Annex I

Annex II

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