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Tariffs Update

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 On April 2, 2025, the Trump administration leveraged the authority granted by the International Emergency Economic Powers Act (IEEPA) to impose reciprocal tariffs on imported goods.  View the Executive Order HERE.  Starting April 5, these tariffs will apply to all imported goods, except those already in transit, and will add to any existing duties or tariffs. 

The administration specified an ad valorem rate of 10% and varying tariff rates for goods from specific countries, included in Annex-I, which will be enforced from April 9 onwards.  Exceptions to these tariffs include information materials, humanitarian donations, and certain categories like steel and aluminum subject to Section 232 tariffs.  Additionally, goods from Russia, Belarus, North Korea, and Cuba face separate tariff structures, reflecting geopolitical considerations. 

Canadian and Mexican products are exempt from these duties, provided they meet U.S.-Mexico-Canada Trade Agreement (USMCA) compliance.  However, should the IEEPA tariffs cease, a reciprocal tariff of 12% could apply, unless exempted under specific conditions such as energy resources or USMCA duty-free eligibility.  The tariffs exclusively target non-U.S. components of imported goods, requiring at least 20% U.S. content to mitigate tariff impact. 

The AEC will continue to monitor these matters and provide updates as necessary. 

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