Tariff Update: New Tariffs Starting April 5

WSSA continues to work with the TNT/Toasts Not Tariffs Coalition and TNT has prepared the below summary of the current tariff landscape.  We are continuing to dig into the in-transit exemption to determine the interpretation of the “final mode” of transit mentioned in the executive order to see if this will include containers gated in at overseas terminals or loaded on feeder vessels.  We will send out further updates as these items are clarified.

Please contact us should you have any questions or need further information at this time.

Dear members of the Toasts Not Tariffs Coalition,

This evening, the White House published the Executive Order (EO) pertaining to President Trump's announcement earlier today of reciprocal tariffs (attached). It is anticipated that a Federal Register Notice will be published shortly to formalize the implementation of the EO. Below is a summary of the EO.

Implementation Dates and Impacted Countries:

10% universal tariff on all countries*: effective April 5, 12:01 am

Individual reciprocal tariffs on 60 countries (the “worst offenders”): April 9, 12:01 am (see attached)

Thus, as of 12:01 a.m. on April 9, tariffs on all goods imported from 60 specified countries will increase from 10% to the percentages listed in the attached chart.

For example, the tariff on all products from the EU will increase from 10% ad valorem to 20% ad valorem on April 9; the tariff on all imports from Japan will increase from 10% to 24%, and so on for the other countries as detailed in the chart.  Most countries (such as the UK) will continue to face a 10% tariff.    

*Canada and Mexico: The existing fentanyl/migration IEEPA orders remain in effect and are unaffected by this order. This means USMCA-compliant goods will continue to see a 0% tariff, and non-USMCA-compliant goods will see a 25% tariff. In the event the existing fentanyl/migration IEEPA orders are terminated, USMCA-compliant goods would continue to receive preferential treatment, while non-USMCA-compliant goods would be subject to a 12% reciprocal tariff.

Thus, imports of spirits from Canada and Mexico will continue to be imported duty-free under USMCA, as long as they are officially declared during the importation process.

Scope/Impacted Industries: Some goods will not be subject to the Reciprocal Tariff. These include:

(1) articles subject to 50 USC 1702(b);  (SEE BELOW)

(2) steel/aluminum articles and autos/auto parts already subject to Section 232 tariffs;

(3) copper, pharmaceuticals, semiconductors, and lumber articles;

(4) all articles that may become subject to future Section 232 tariffs;

(5) bullion; and

(6) energy and other certain minerals that are not available in the United States.

Goods in Transit:

For the 10% universal tariff, goods loaded onto a vessel at the port of loading and in transit on the final mode of transit before 12:01 a.m. eastern daylight time on April 5, 2025, and entered for consumption or withdrawn from warehouse for consumption after 12:01 a.m. eastern daylight time on April 5, 2025, shall not be subject to such additional duty.

For the country specific additional tariffs, goods loaded onto a vessel at the port of loading and in transit on the final mode of transit before 12:01 a.m. eastern daylight time on April 9, 2025, and entered for consumption or withdrawn from warehouse for consumption after 12:01 a.m. eastern daylight time on April 9, 2025, shall not be subject to these country-specific ad valorem rates of duty set forth in Annex I to this order.

NOTE: We are seeking clarification on this.

Escalation Clause: Allows the President to increase the tariff if trading partners retaliate, or decrease the tariff if trading partners take significant steps to remedy non-reciprocal trade arrangements and align with the U.S. on economic and national security matters.

Review and Termination: These tariffs will remain in effect until President Trump determines that the threat posed by the trade deficit and underlying nonreciprocal treatment is satisfied, resolved, or mitigated.

Tariff Authority: the International Emergency Economic Powers Act of 1977 (IEEPA)

§1702. Presidential authorities

(b) The authority granted to the President by this section does not include the authority to regulate or prohibit, directly or indirectly-

(1) any postal, telegraphic, telephonic, or other personal communication, which does not involve a transfer of anything of value;

(2) donations, by persons subject to the jurisdiction of the United States, of articles, such as food, clothing, and medicine, intended to be used to relieve human suffering, except to the extent that the President determines that such donations (A) would seriously impair his ability to deal with any national emergency declared under section 1701 of this title, (B) are in response to coercion against the proposed recipient or donor, or (C) would endanger Armed Forces of the United States which are engaged in hostilities or are in a situation where imminent involvement in hostilities is clearly indicated by the circumstances; or 1

(3) the importation from any country, or the exportation to any country, whether commercial or otherwise, regardless of format or medium of transmission, of any information or informational materials, including but not limited to, publications, films, posters, phonograph records, photographs, microfilms, microfiche, tapes, compact disks, CD ROMs, artworks, and news wire feeds. The exports exempted from regulation or prohibition by this paragraph do not include those which are otherwise controlled for export under section 2404 of the Appendix to this title, or under section 2405 of the Appendix to this title to the extent that such controls promote the nonproliferation or antiterrorism policies of the United States, or with respect to which acts are prohibited by chapter 37 of title 18; or

(4) any transactions ordinarily incident to travel to or from any country, including importation of accompanied baggage for personal use, maintenance within any country including payment of living expenses and acquisition of goods or services for personal use, and arrangement or facilitation of such travel including nonscheduled air, sea, or land voyages.

2025 Reciprocal Tariff

Tariff Breakdown

Reciprocal Tariff Fact Sheet