The White House released the executive order signed by President Donald Trump today imposing a 10% universal tariff April 5, as well as higher tariffs that vary by country on April 9. As noted on a White House call earlier in the day, Mexico and Canada aren’t covered by these additional tariffs for the time being, as are goods subject to Section 232 tariffs.
President Donald Trump is imposing 10% tariffs on all imports other than those from Canada and Mexico, beginning April 5, according to a call detailing the reciprocal tariff actions ahead of the speech. These tariffs are not on top of Section 232 tariffs on autos and metals, a senior government official said on the call.
Importers are still waiting for additional direction from CBP on how to manage new duties on steel and aluminum derivatives outside of Chapters 73 and 76, speakers on a KPMG webinar said last week.
Four Harmonized Tariff Schedule codes were mistakenly identified as needing to pay Section 232 duties under HTS 9903.85.08, according to an April 1 cargo systems message.
Sen. Tim Kaine, D-Va., called on the Senate to revoke what he called "the fake emergency" of drug smuggling and migration across the Canadian border, the pretext for imposing 25% tariffs on most Canadian goods and 10% tariffs on energy and potash fertilizer.
To date, no major lawsuits challenging any of the new tariff actions taken by President Donald Trump have been filed. The reasons for that include high legal hurdles to success and inconsistency in the implementation of the tariffs, trade lawyers told us.
Lawmakers are drafting legislation to codify the authority that the Office of Information and Communication Technology and Services uses to place import restrictions on Chinese connected vehicles and other technologies, said Jeffrey Kessler, undersecretary of the Bureau of Industry and Security.
Customs attorney Dan Ujczo, who has contacts in the White House as well as clients who are major automakers, said he thinks the 25% tariffs on Canada and Mexico over migration and fentanyl will continue past April 2, and will be stacked with auto tariffs and the reciprocal levies.
Customs attorney Dan Ujczo, speaking to an audience of automotive industry compliance officials hosted by the Automotive Industry Action Group, cautioned that if the listeners' companies are exporting auto parts from Mexico or Canada, they shouldn't assume that they have until May 3 before 25% tariffs are going to bite. (This is assuming the parts currently qualify for USMCA and therefore are avoiding the 25% tariffs imposed on exports from those countries under the guise of a national emergency on fentanyl smuggling and migration.)
Additional 25% tariffs for cars and light trucks and cargo vans will take effect 12:01 a.m. ET on April 3, with tariffs on parts including engines and engine parts, transmissions and powertrain parts, and electrical components coming later, but no later than May 3, said an executive order issued by President Donald Trump.