US Imposes New Tariffs Starting April 2025

US Tariff Measures: 10% baseline tariffs, reciprocal tariffs, and other targeted tariffs

Since the start of the 2025 Trump administration, several tariff measures affecting goods imported into the United States have been announced. This summary provides an overview of these measures. Please note that these details are subject to change as new information becomes available.

US Imposes 10% tariff on imports from all countries and higher “reciprocal tariffs” for selected countries

The US has declared a national economic emergency under the International Emergency Economic Powers Act (IEEPA) to address ongoing trade deficits and perceived unfair trade practices. Effective April 5, 2025, a 10% tariff will be imposed on imports from all countries (except Mexico and Canada). Additionally, higher “reciprocal” tariffs will be levied on countries with significant trade deficits, with implementation beginning on April 9, 2025. Specifically, imports from the European Union will be subject to an additional 20% tariff. These tariffs will remain in place until the trade deficit is addressed or mitigated.

The IEEPA Order includes provisions for modifying tariffs, allowing increases in response to retaliation or reductions if trading partners take significant steps to address the alleged non-reciprocal trade practices. Certain goods will be exempt from the new tariffs, including steel, aluminum and automobiles/automobile parts already subject to Section 232 tariffs, copper, pharmaceuticals, semiconductors, and energy resources. 

US imposes targeted tariffs on steel, aluminum, automobile (parts), Chinese goods, and countries importing Venezuelan oil 

• Steel and aluminium products: The United States has reinstated Section 232 tariffs of 25% on steel and aluminum products, initially introduced in 2018. These tariffs apply to both semi-finished and finished goods, including pipes, wire, and tin foil. The scope of these tariffs has been expanded to encompass a broader range of steel and aluminum products, such as household items like cookware, window frames, and machinery. By May 12, 2025, the US Secretary of Commerce is expected to introduce a system for periodically adding additional steel and aluminum derivative products to the tariff list.
• Automobile and automobile parts: Effective April 3, 2025, a 25% tariff has been imposed on automobile imports, with a similar tariff for automobile parts set to take effect by May 3, 2025. This follows a 2019 investigation that concluded such imports, especially from foreign industries benefiting from unfair subsidies, threatened US manufacturing and industrial security. The US intends to monitor these imports and adjust tariffs based on national security concerns.
• Chinese goods: The United States has imposed a 20% tariff on Chinese goods, effective February 4, 2025, as part of its efforts to combat the ongoing synthetic opioid crisis, particularly the influx of fentanyl from China. This tariff is supplementary to any other applicable duties, fees, or charges on these imports.
• Countries importing Venezuelan Oil: A secondary 25% tariff may be imposed on goods imported into the US from countries that import Venezuelan oil.

EU response

In response to the new US tariffs on steel and aluminum imports, the European Commission has initiated countermeasures on US imports. The EU regards these tariffs as unjustified and detrimental to transatlantic trade, increasing costs for businesses and consumers. The EU is set to reinstate suspended countermeasures on targeted US originating goods by April 14, 2025, and is preparing additional measures, with consultation ongoing with Member States and stakeholders. Further updates are expected in the coming weeks.

Recommended actions and how we can support you

As the tariff landscape continues to evolve, it is crucial for both exporters and importers to take proactive steps to manage the potential impact of the new US tariffs and related EU countermeasures. We recommend the following actions:

• Review country of origin: Given that certain US tariff measures (e.g., reciprocal tariffs and tariffs on Chinese goods) are country-specific, businesses should thoroughly examine the origin of their goods. Accurate origin documentation is critical, as authorities will closely scrutinize imports subject to these tariff measures. Being audit-ready will ensure compliance and avoid unnecessary operational complications such as import and export delays.
• Ensure correct customs classification: Properly classifying goods is essential in determining whether specific products are subject to certain tariffs or qualify for exemptions. With the complexity of targeted tariffs on steel, aluminum, automobiles, and related parts, companies must ensure their product classifications are correct and up-to-date.
• Rationalize customs valuation: Companies should, in compliance with customs valuation rules, assess the potential to adjust pricing strategies and cost components – particularly for intangible elements – to ensure a rational customs value and prevent the overpayment of tariffs.
• Engage with stakeholders:  Open communication with suppliers, customers, and internal teams is essential to navigating the impact of these tariffs. Companies should collaborate with suppliers to explore alternative sourcing options and keep customers informed about potential price changes. Additionally, internal stakeholders should be regularly updated on trade and customs regulatory developments that could impact sourcing, pricing, and other operational or commercial aspects.

We are here to guide you through these changes, ensuring your business remains compliant, adaptable, and well-positioned in response to the evolving tariff landscape. Please reach out to our Trade and Customs team at KPMG Meijburg & Co for further assistance.