Reciprocal Tariff Update
Late yesterday the current reciprocal tariff for China was increased from 34% to 84%. These took effect on April 9, 2025, at 12:01AM. This was a very swift response to the retaliatory tariffs announced by China on April 6th. Customs and Border Protection issued swift instructions for implementation and confirmed that all existing exclusions exist. The most significant exclusion is trade actions under 232 for either aluminum or steel, auto parts or any other commodity group which may be subjected to in the future. 84% replaces the 34%, these numbers do not stack upon each other.
Also, on April 9, 2025, all the country specific tariffs will shift to their higher published percentage. For example, Vietnam will now be charged 46%. This tariff replaces the 10% tariff which was originally implemented on April 5, 2025.
Reciprocal tariffs:
These tariffs are imposed under the International Emergency Economic Powers Act, Trade Act of 1974 – IEEPA.
Reciprocal tariffs are for the most part impact all goods shipped from a country. All countries are subject to reciprocal tariffs. As of April 9, some countries are subjected to higher tariffs than others.
While the China Reciprocal tariffs stack on to other tariffs; they do not stack onto each other. For example: like all other nations, China started out from April 4-8 at 10%, then it was scheduled to be moved up to 36% effective April 9, with the announcement yesterday that tariff is now 84%. Said differently, it is not 10+34+84 for the China Reciprocal tariffs, effective today it is 84%.
Reciprocal tariffs do not apply if the goods being imported are covered by a separate 232 (National Security) tariff. Therefore, goods which fall under the Steel and Aluminum tariffs, or the Automotive tariffs are exempted from the reciprocal tariffs.
See our website for an up-to-date list of the Reciprocal Tariffs. Go to Reillyinternational.com, click on the tools and resources tab and find Temporary legislative actions/Temporary Legislative Actions Impacting Tariffs. We are not including the website link because doing so may prevent this message from entering your email box.
There is a list of Goods with potential affiliated HTS#’s which are exempt. We are not aware of any client we currently serve who have products on this list. We have not attached this list to keep the document on our website as clean as possible, but you can find a copy easily or call our office for a list of Annex II on the Reciprocal Tariffs.
Exemptions include goods made with greater than 20% US Content (the foreign content is not exempt).
Goods of origin from Canada or Mexico, including goods qualifying under USMCA are exempt from the reciprocal tariff.
Please contact a member of our team if you have any questions.
April 9, 2025