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Custom : Update on the current situation regarding the new US tariffs

Michaela MerzLeave a comment

What Was Announced

The US President announced the implementation of reciprocal tariffs ranging from 10% to 49% on various foreign countries. Using his IEEPA authority, President Trump will impose a 10% tariff on all countries, effective April 5, 2025, at 12:01 a.m. EDT. Additionally, an individualized reciprocal higher tariff will be imposed on countries with which the United States has the largest trade deficits, effective April 9, 2025, at 12:01 a.m. EDT.

The Executive Order imposing the “reciprocal” tariff rates have specifically excluded certain product categories which will not be subject to these new measures. These products include:

  • Steel and aluminum articles already subject to additional tariff measures 
  • Auto and auto parts already subject to tariff measures implemented on 3 April
  • Copper
  • Pharmaceuticals
  • Semiconductors
  • Lumber articles
  • Energy and certain other minerals that are not available in the United States 

The specific additional tariffs for key markets are as follows:

  • European Union: 20%
  • United Kingdom: 10%
  • China: 34%
  • Japan: 24%
  • Switzerland: 32%
  • India: 27%
  • South Korea: 26%

In addition to the above, a further 60 or so countries will have reciprocal tariffs applied at half the rate they charge the US, according to the Trump administration. These measures are due to be implemented on 9 April.

Furthermore, a 25% tariff will be imposed on all foreign-made automobiles, effective at midnight Eastern Time (ET) on April 3, 2025. Additional details will be available once the executive order is issued by the White House.

Key Actions for Businesses

In light of the announced tariffs, companies have been diligently analyzing their data and planning for potential impacts. With the recent announcement, businesses should now focus on implementing measures and exploring various options, including:

  • Customs Origin, Valuation, and Tariff Classification: Reassess the origin of goods, explore customs valuation reduction strategies, and ensure accurate tariff classification to minimize tariff liabilities.
  • Duty Relief Programs: Consider utilizing duty relief programs such as duty drawbacks where available.

In the coming days, commentary from US trading partners is expected, with the EU likely to make a statement on April 4, 2025. It is anticipated that the EU will proceed with retaliatory measures, and other countries may follow suit in response to the US tariffs.

A response from Switzerland is expected soon. The key focus now is to clarify the methodology behind the 61% ‘Tariffs Charged to the U.S.A.’ for Switzerland and the calculation of the 31% Reciprocal Tariffs. It is essential to determine the criteria Switzerland must meet to be considered as having taken ‘significant steps to remedy non-reciprocal trade arrangements and align with the United States on economic and national security matters.’

We are in close contact with SECO and will provide further updates as more information becomes available regarding Switzerland’s response and subsequent actions.

The executive orders also grant modification authority, allowing President Trump to adjust tariffs if trading partners retaliate or if they take steps to remedy non-reciprocal trade arrangements and align with the US on economic and national security matters.

Businesses should assess their trade profiles to determine the full impact of the measures, including direct and indirect product flows and additional compliance costs. Evaluating the effects and determining necessary changes, such as altering manufacturing models or shifting sourcing, will be crucial. A detailed analysis of the new customs duty profile throughout the supply chain is essential to identify potential mitigation strategies, such as reassessing origin, exploring customs valuation reduction strategies, or utilizing duty drawbacks where available.

PwC Webinar: US tariffs: Impact on business – April update webinar

Given these evolving developments, it is crucial for companies to closely monitor the shifting landscape of international trade relations for the most up-to-date information. Stay informed for further updates on this dynamic situation. Join our next webinar on 9 April 2025, where we will continue our discussion started during our February webinar and will cover:

  • The immediate impact of recent tariff announcements and measures on businesses.
  • The latest updates on President Trump’s proposed reciprocal tariffs and the expected retaliatory actions from the EU, UK, Canada and Asia.
  • Proactive steps companies should take now to mitigate risks and navigate the evolving customs landscape in North America and beyond.
  • Tax considerations and strategic approaches to help businesses manage risks effectively.
  • Excursion: Key legal and regulatory considerations for pharma, life sciences, and medtech companies, along with tailored strategies to address industry-specific challenges.

To learn more about this webinar and/or to register for it, please visit our event page.

Feel free to also reach out directly to our Customs and Trade Team:

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