JF Moran’s Executive Director, Betty Robson, breaks down the basics of tariffs and what businesses can expect.
Changes to the international trade landscape and import/export regulations are happening quickly, and staying up to date on the latest information is essential. Whether you are a business importing crucial manufacturing components or exporting products to foreign markets, recent and expected changes will likely impact your day-to-day operations and could significantly affect your landing costs. We encourage you to follow us on LinkedIn and subscribe to our monthly magazine, InsideTrax, to stay
New Executive Orders & Regulations
International Emergency Economic Powers Act (IEEPA) Tariffs
Reciprocal Tariffs:
Reciprocal Tariffs were announced on April 2, the date being deemed Liberation Day by the Trump administration. On April 9, Trump announced a 90-Day Pause for Reciprocal Tariffs, effective April 10, 2025. Please refer to the complete list of reciprocal tariff rates by country here.
A 10% tariff on all imported goods into the U.S. (with specific exemptions) took effect on April 5, 2025, which is not impacted by the pause.
Countries that began paying the newly enacted reciprocal tariff rates in early April will receive a 90-day pause and will only be required to pay the 10% base tariff rate while trade deals are finalized.
This pause will not apply to China, which faces a 145% tariff in response to retaliatory actions taken against the U.S. for these new levies.
China
Temporary Tariff Relief on Chinese Imports – Effective May 14, 2025
The United States and China have agreed to a 90-day suspension of select tariffs, providing short-term relief for importers. Key points of the agreement include:
Suspension of the 125% retaliatory tariff
Suspension of the 34% reciprocal tariff
Temporary application of a 10% baseline tariff on most Chinese imports
This suspension is in effect through August 12, 2025, unless extended. Please note that existing duties, including Section 232 and Section 301 tariffs, remain active.
We are monitoring these developments closely and will share updates as they become available. If you have questions about how this may impact your imports, please contact your JF Moran representative or reach out to our compliance team.
Canada and mexico:
USMCA-compliant goods: 0% tariff
Non-USMCA compliant goods: 25% tariff
Non-USMCA compliant energy and potash: 10% tariff
If existing fentanyl- or migration-related IEEPA orders are lifted:
Non-compliant goods will face a 12% reciprocal tariff
USMCA-compliant goods will retain preferred status
De Minimis Elimination
Effective May 2, 2025, goods valued under $800 from China or Hong Kong are no longer allowed.
Still applies to goods from other countries.
Carriers must report shipment data to CBP; possible future expansion to Macau.
Section 232 Tariffs
Section 232 tariffs, based on national security considerations, were imposed as follows:
Steel and aluminum: 50% duty effective June 4, 2025, applies to HTS Chapters 73 & 76, including derivatives.
April 3, 2025: A 25% tariff on imported automobiles.
May 3, 2025: A 25% tariff on auto parts.
Enforcement & Penalties
Misstatements: Subject to retroactive tariffs and clawback provisions.
The 25% tariff applies in addition to other duties, such as antidumping or Section 301 duties on Chinese imports.
No duty drawback will be allowed on steel and aluminum tariffs.
CBP will prioritize classification reviews for steel and aluminum products and strictly enforce penalties for misclassification.
Steel Products: Penalties will be issued without consideration for mitigating factors.
Aluminum Products: CBP will impose the maximum legal monetary penalties for any misclassification intended to avoid tariffs.
Summary of Effective Dates
February 4, 2025 — IEEPA 10% tariff
March 4, 2025 — IEEPA raised to 20%
March 12, 2025 — Section 232 (Steel/Aluminum) tariff expansion
April 3, 2025 — Autos 25% tariff under Section 232
April 5, 2025 — Reciprocal Tariffs 10%
May 2, 2025 — De Minimis elimination (China/Hong Kong)
May 3, 2025 — Auto parts 25% tariff
How This Affects You
Cost Implications: Tariffs may significantly raise the total landed cost of your products, affecting margin and pricing models.
Supply Chain Shifts: You may need to reconsider where you source products or materials to avoid excessive tariffs.
Customs Complexity: Additional documentation, declarations, and compliance steps may be required for entry processing.
How JF Moran Can Help
Alternative Sourcing: Tap into our global network to explore alternative sourcing options in low- or no-tariff countries.
Compliance Support: JF Moran’s Customs Specialists can assist with classification reviews, eligibility for exclusions, and regulatory compliance.
Strategic Planning: We’ll work with you on proactive strategies to mitigate the current and future tariffs’ financial and operational impact.
Consultations: We’ll help you evaluate the impact of tariffs across your supply chain and identify risk areas.
Frequently Asked Questions (FAQ)
1. Do I need to act now?
Yes. Many of these tariffs are already in effect. If you import goods into the U.S., your costs and documentation requirements may have changed.
2. Can I change suppliers to avoid tariffs?
In many cases, yes. JF Moran can help you explore sourcing options in lower-tariff countries or regions.
3. Are there ways to recover or reduce tariffs?
Some mitigation strategies may be available, but certain tariffs—especially under IEEPA—do not allow duty refunds. Based on your products and trade lanes, we’ll help you determine what’s possible.
4. Will this affect my delivery times?
Possibly. While transportation timelines are stable, Customs clearance may take longer due to more complex entry requirements and reviews.
5. Will these tariffs change again?
Yes. This is an ongoing situation. Rates and rules are subject to change with little notice.
STAY UP TO DATE:
Follow us on LinkedIn for the latest tariff information and subscribe to our monthly LinkedIn Newsletter, AcrossTheTrax for in-depth analysis of current events in international trade.