Higher reciprocal tariffs on countries with the largest U.S. trade deficits starting April 9, 2025
The White House today announced that President Trump has signed an executive order that will impose a 10% tariff on all countries (effective April 5, 2025), with higher reciprocal tariffs on countries with the largest U.S. trade deficits (effective April 9, 2025).
President Trump is invoking the International Emergency Economic Powers Act of 1977 (IEEPA) to address the U.S. trade deficit. The tariffs will remain in effect until such a time as President Trump determines that the threat posed by the trade deficit and underlying nonreciprocal treatment is satisfied, resolved, or mitigated. President Trump also may increase the tariff if trading partners retaliate or decrease the tariffs if trading partners take significant steps to remedy non-reciprocal trade arrangements and align with the United States on economic and national security matters.
Certain goods, including steel, aluminum, copper, pharmaceuticals, semiconductors, lumber, energy, and autos/auto parts already subject to Section 232 tariffs, will be exempt. Existing IEEPA orders for Canada and Mexico remain unchanged.
The initial reciprocal tariff rates imposed on various countries are listed in Annex I of the executive order.
Read the White House fact sheet
Clarification of exceptions
The White House on April 11, 2025, posted on its website a clarification specifying that semiconductors are exempt from the ad valorem duties imposed by this executive order and subsequent orders, and any duties collected on these imports will be refunded. U.S. Customs and Border Protection also updated its guidance.