LIBERATION DAY
LIBERATION DAY: On April 2, President Trump signed an executive order imposing additional tariffs on imports from all countries. These tariffs will go into effect in the coming days.
Tariff Details
The U.S. will implement a blanket 10 percent tariff on all imports from its trading partners. This tariff will apply to goods entering or withdrawn from warehouses for consumption starting at 12:01 a.m. EDT on April 5. However, it will not apply to goods that are already in transit before that time or those entered/withdrawn from warehouses after that time.
In addition to this general 10 percent tariff, several dozen countries will face higher tariffs ranging from 11 to 50 percent. Notable rates include:
49 percent for Cambodia
48 percent for Laos
46 percent for Vietnam
37 percent for Bangladesh
34 percent for China
32 percent for Taiwan
32 percent for Indonesia
32 percent for Switzerland
31 percent for South Africa
27 percent for India
26 percent for South Korea
24 percent for Japan
20 percent for the European Union
These higher tariffs will be effective on goods entered or withdrawn from warehouse for consumption starting at 12:01 a.m. EDT on April 9. Similar to the 10 percent tariff, these will not apply to goods already in transit before that time.
These tariffs will be applied in addition to any other existing duties, taxes, or fees and will remain in place until the president determines that the conditions outlined in the executive order have been resolved or mitigated.
The executive order also allows for the possibility of further increases in tariffs if these measures are not effective in addressing the issues at hand, such as ongoing U.S. trade deficits, the expansion of non-reciprocal trade arrangements by U.S. trading partners, or threats to U.S. economic and national security. On the flip side, if trading partners make significant progress toward addressing these trade issues, tariffs could be reduced or limited.
Tariffs on Canada and Mexico
The executive order reiterates the 25 percent tariffs on imports from Canada and Mexico that do not qualify for duty-free treatment under the U.S.-Mexico-Canada Agreement (USMCA). For Canada, this includes a 10 percent tariff on energy, energy resources, and potash. These tariffs were imposed under a different executive order, and if terminated, USMCA-compliant goods would remain duty-free. Other goods not in compliance would be subject to a 12 percent tariff.
Exemptions
The executive order provides some exemptions from these tariffs, particularly for items with significant U.S.-origin content. Specifically, the tariffs will apply only to the non-U.S. content of an item, provided that at least 20 percent of the item’s value is from U.S. sources. U.S. Customs and Border Protection will be tasked with verifying the U.S. content and ensuring compliance with these rules.
Additionally, the following items will be exempt from the additional tariffs:
Communications, donations, and informational materials
Steel and aluminum products already subject to Section 232 duties
Automobiles and automotive parts subject to Section 232 duties
Copper, pharmaceuticals, semiconductors, lumber, critical minerals, and energy products
Articles from trading partners with Column 2 duty rates
Items potentially affected by future Section 232 actions
De Minimis Exemption
For goods otherwise eligible for duty-free treatment, de minimis provisions will remain in place. This will apply to all goods subject to the new tariffs, except those imported from China, until the Secretary of Commerce notifies the president that adequate systems are in place to process and collect revenue on these goods.
Authority and Justification
These tariff increases are being implemented under the International Emergency Economic Powers Act (IEEPA), following a declaration of national emergency due to the "unusual and extraordinary threat" posed to U.S. national security. The executive order cites issues such as a lack of reciprocity in trade relationships, uneven tariff rates, non-tariff barriers, and U.S. trading partners' economic policies that suppress domestic wages and consumption, all contributing to persistent trade deficits. These deficits are said to harm domestic manufacturing capacity, particularly in the U.S. defense-industrial base, and negatively impact the ability of U.S. producers to export and invest in domestic production.
This order marks a significant step in President Trump’s ongoing efforts to address perceived trade imbalances and protect U.S. economic and national security interests.
