Reciprocal Tariffs Against the World and the End of the de minimus Exemption for Chinese Goods

Donald Trump has announced multiple, sweeping additions to US import tariffs affecting all countries, as well as modifying existing additional tariffs and regulations in place.

Starting April 5, 2025 at 12:01 a.m. EDT, imports from all countries (except for Mexico and Canada) will be subject to an additional 10% tariff.

Following that, on April 9, 2025 at 12:01 a.m. EDT, certain countries, fifty-seven in total, will have their 10% tariff raised to a higher rate. Notable affected countries include China, which will be raised to an additional 34%, India, at an additional 27%, and EU countries at an additional 20%. A full list of affected countries and their rates can be found HERE.

These tariffs will be modified – that is, increased or decreased – according to subsequent negotiations with affected countries. Foreign countries who reduce their tariffs against US exports to them may have their reciprocal tariff rate reduced, and countries who employ additional retaliatory tariffs in response could have their reciprocal tariff rates increased.

Exceptions:

Certain types of items will not be subject to these reciprocal tariffs, such as:

• Items currently subject Section 232 additional tariffs, such as Steel and Aluminum items and steel and aluminum derivative items, as well as automobiles and automobile parts.
• Items that may become subject to Section 232 additional tariffs, such as copper, pharmaceuticals, semiconductors, and lumber articles

Additionally, the reciprocal tariffs will not apply to the US-made content of goods imported from a country subject to them.

Items subject to a “non-Most Favored Nation Rate” (for example, sanctioned goods from Russia) will also not be subject.

Mexico and Canada:

As of April 5, 2025, imports from Mexico and Canada will continue to be subject to the existing 25% rate on most goods (excepting energy imports from Canada and potash from both countries), unless USMCA special treatment is claimed. If these existing rates are terminated in the future, the 25% rate would be exchanged for a 12% reciprocal tariff, and Mexican and Canadian goods could continue to avoid that 12% by claiming special treatment under USMCA.

China:

As of May 2, 2025 at 12:01 a.m. EDT, a sanction of almost equal significance will be deployed against imports from China – on this date, the “Section 321” de minimus exemption allowing goods to be imported into the USA duty-free and without a formal entry and declared HTS code will be terminated. In other words, all US imports from China with a total value under $800 that would otherwise be imported under the expedited and duty-free de minimus exemption will go through the standard entry process and be subject to standard duties, as well as the additional 20% tariff implemented against China in March, 2025, and the additional 34% reciprocal tariff going into effect April 9, 2025.

Using executive powers, the President can prescribe or revoke trade sanctions in a matter of hours. Allyn International’s service suite includes consultation on current and developing issues in the US trade community. Reach Allyn here for a consultation or, contact us sales@allynintl.com or 239-489-9900.

Contributor: Andrew Dosher

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About Allyn International

Allyn International is dedicated to providing high quality, customer centric services and solutions for the global marketplace. Allyn's core products include transportation management, logistics sourcing, freight forwarding, supply chain consulting, tax management and global trade compliance. Allyn clients range from small local businesses to Fortune 500 firms. Allyn conducts business in more than 20 languages and has extensive experience in both developed and emerging markets. Highly trained experts are positioned throughout North and South America, Europe and Asia. Allyn’s regional headquarters are strategically located in Fort Myers, Florida, U.S.A., Shanghai, P.R. China, Prague, Czech Republic, and Dubai, U.A.E. For more information, visit www.allynintl.com.