United States Tariff Adjustments
On May 18, 2025, the U.S. government reaffirmed several tariff policies and introduced new measures affecting imports from various countries.
IEEPA Tariffs
- The International Emergency Economic Powers Act (IEEPA) tariffs remain in effect, with a 20% tariff imposed on all goods originating from China, including Hong Kong.
- Canada and Mexico continue to face 25% tariffs, except for goods qualifying under the United States-Mexico-Canada Agreement (USMCA).
- Goods subject to IEEPA tariffs are not subject to Section 232 steel and aluminum tariffs.
Section 232 Duties on Steel and Aluminum
- The 25% tariff on steel and aluminum imports remains unchanged, with additional scrutiny on derivative products such as aluminum cans.
- No new exemptions were announced.
Universal Tariffs
- The 10% tariff on imports from all countries continues, but the escalated tariffs on 83 countries remain paused until July 9, 2025.
- The U.S. and China agreed to pause reciprocal tariffs of 125% for 90 days until August 12, 2025.
Auto Tariffs
- The 25% tariff on automobiles and auto parts remains unchanged, with no new exemptions announced.
De Minimis Elimination
- The U.S. confirmed that goods under $800 from China or Hong Kong remain subject to tariffs, following the elimination of the de minimis exemption on May 2, 2025.
China’s Tariff Adjustments
China responded to U.S. trade policies with its own tariff measures.
Retaliatory Tariffs
- China announced that it will extend its reciprocal tariff pause on U.S. imports for an additional 30 days, meaning the 125% tariff will remain suspended until August 12, 2025.
Technology Tariffs
- China introduced a 15% tariff on semiconductors and advanced computing components imported from the U.S., citing concerns over national security.
European Union Tariff Adjustments
The EU introduced new tariffs aimed at protecting domestic industries.
Steel Tariffs
- The EU imposed a 12% tariff on imported steel from non-EU countries, citing concerns over unfair competition.
Agricultural Tariffs
- The EU announced a 5% tariff on imported wheat and soybeans from the U.S. and Canada, effective immediately.
Canada’s Tariff Adjustments
Canada reaffirmed its preferential tariff treatments for countries with free trade agreements, including the USMCA and CPTPP.
Energy Tariffs
- Canada imposed a 7% tariff on imported crude oil from non-CPTPP countries, aiming to support domestic energy producers.
India’s Tariff Adjustments
India introduced new tariffs targeting specific industries.
Electronics Tariffs
- India raised tariffs on imported smartphones and laptops to 18%, citing the need to boost domestic manufacturing.
Pharmaceutical Tariffs
- India reduced tariffs on imported medical equipment to 5%, aiming to improve healthcare accessibility.
These tariff changes are shaping global trade dynamics, with significant impacts on supply chains and import costs. Let me know if you need further details!
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