President Trump on April 2 announced the details of his reciprocal trade agenda, including imposing 10% universal tariffs on imported products from all countries and an additional country-specific ad valorem tariff rate on the countries with which the United States has the largest trade deficits and which impose other trade barriers. The 10% tariffs will generally apply "with respect to goods entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. on April 5," while the higher reciprocal-based tariffs on products from specified countries will take effect April 9, 2025, at 12:01 a.m.

The Executive Order states that certain goods will not be subject to the reciprocal tariffs, including steel/aluminum articles currently subject to 25% tariffs under Sec. 232, and finished autos/auto parts that are subject to 25% tariffs effective on April 3 (auto parts as late as May 3). Other goods exempt from reciprocal tariffs include imports that are the subject of ongoing Sec. 232 investigations, including copper and lumber articles, as well as pharmaceuticals, semiconductors, and certain critical minerals and energy goods detailed in Annex II. Additionally, the reciprocal tariffs will not apply to imports from Canada and Mexico, but goods that do not qualify under the US-Mexico-Canada (USMCA) agreement remain subject to the existing 25% tariffs (10% for Canadian energy and potash imports).

The Executive Order states that the new tariffs will be issued under the International Emergency Economic Powers Act (IEEPA) in response to persistent trade deficits and the impact on the US manufacturing base. IEEPA grants the President authority to impose economic sanctions, control foreign assets and undertake other measures to address threats to national security, foreign policy or the economy.

In a Rose Garden ceremony, President Trump said regarding the new tariffs, "We will charge them approximately half of what they are and have been charging us. So, the tariffs will be not a full reciprocal. I could have done that, yes, but it would have been tough for a lot of countries who didn't want to do that." He highlighted "discounted" reciprocal tariff rates including:

• China: 34%
• European Union: 20%
• Taiwan: 32%
• Japan: 24%

A complete list is in Annex I available here.

"This is one of the most important days, in my opinion, in American history. It's our declaration of economic independence. For years, hardworking American citizens were forced to sit on the sidelines as other nations got rich and powerful, much of it at our expense," President Trump said. "But now, it's our turn to prosper, and in so doing, use trillions and trillions of dollars to reduce our taxes and pay down our national debt, and it'll all happen very quickly."

Goods set forth in Annex II are not subject to the new reciprocal tariffs under the order.

Duty-free de minimis treatment will remain available for the articles described under the EO "until notification by the Secretary of Commerce to the President that adequate systems are in place to fully and expeditiously process and collect duty revenue applicable pursuant to this subsection for articles otherwise eligible for de minimis treatment."

Also during the ceremony, President Trump noted, "effective at midnight, we will impose a 25% tariff on all foreign-made automobiles." On March 26, President Trump announced 25% additional tariffs on imports of automobiles and automobile parts to protect the national security of the United States (US). The 25% ad valorem tariff is in addition to any other duties, fees, exactions and charges applicable to the automobiles and automobile parts. A proclamation on "Adjusting Imports of Automobiles and Automobile Parts into the United States" was published in the Federal Register this afternoon with details on the list of covered automobiles and automobile parts.

The Executive Order on "Regulating Imports with a Reciprocal Tariff to Rectify Trade Practices that Contribute to Large and Persistent Annual United States Goods Trade Deficits" is available here.

The auto proclamation is available here.