President Trump Issues Universal Reciprocal Tariff and Higher Individualized Rates for Certain Countries

On April 2, 2025, President Trump issued an Executive Order (“EO”) imposing a 10% universal tariff on imports from all countries (with certain exceptions) pursuant to the International Emergency Economic Powers Act of 1977 (“IEEPA”).  These tariffs will take effect at 12:01 a.m. eastern standard time on April 5, 2025.

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The tariff rates will increase on a country-specific basis for select countries with which the United States has significant trade-in-goods deficits.  The increase will take effect at 12:01 a.m. eastern standard time on April 9, 2025.  The full list of countries subject to higher rates and their respective percentages are available in Annex I of the EO.  We covered these tariffs in greater detail here.

Countries Respond to Reciprocal Tariffs with Retaliatory Tariffs and Countermeasures

Several countries have announced tariff and non-tariff countermeasures in response to President Trump’s reciprocal and automotive tariffs. These include:

• China’s State Council Tariff Commission stated it will impose a 34% tariff on all U.S. goods beginning April 10, 2025 (34% is the same tariff rate the President recently imposed on China).
• Canada will match the U.S.’s 25% tariff on autos but not auto parts.  These tariffs will similarly only apply to autos not qualifying for preferential treatment under the United States-Mexico-Canada Agreement (“USMCA”).
• Japan stated it will increase domestic efforts to offset the U.S. tariffs, including expanding access to subsidies and public loans and covering losses from contracts cancelled due to the tariffs.
• Both the European Union and United Kingdom stated they are preparing a package of further countermeasures in response to the reciprocal tariffs, but nothing official has been implemented.

President Trump Indicates Sectoral Tariffs Forthcoming

While the April 2 reciprocal tariff package did not include any sector- or product-specific tariffs, President Trump stated on April 4 that tariffs on pharmaceuticals and semiconductors are likely to be announced in the future.  Currently, certain products enumerated in Annex II to the April 2 Proclamation, as well as any additional articles that may become subject to duties pursuant to Section 232 actions, are excluded from the April 2 tariffs.

Commerce Releases Annex of Autos and Auto Parts Subject to Section 232 Duties

The Annex of automobiles and automobile parts subject to 25% tariffs pursuant to Section 232 has been released.  These tariffs took effect at 12:01 a.m. eastern time on April 3, 2025.  Our full coverage of these auto tariffs can be found here and here.

Empty Aluminum Cans and Cans of Beer Added to Aluminum Section 232 Derivatives List

Effective at 12:01 a.m. eastern standard time on April 4, 2025, cans of beer and empty aluminum cans are subject to 25% tariffs as aluminum “derivative” products pursuant to Section 232. We reviewed these additions here.  The Federal Register notice has since been published here.

Bipartisan Legislation Introduced Calling for More Congressional Oversight of Tariffs; Four Republican Senators Join Resolution That Would Repeal Reciprocal Tariffs

 On April 3, Senators Chuck Grassley (R-Iowa) and Maria Cantwell (D-Wash) introduced bipartisan legislation entitled the Trade Review Act of 2025 that would increase oversight of tariffs imposed unilaterally by the Executive Branch.  The bill would require the President to notify Congress of any new tariffs within 48 hours of them being imposed and would allow a new duty for a maximum of 60 days unless Congress approves an extension. 

In addition, Senators Lisa Murkowski (R-Alaska), Rand Paul (R-Kentucky), Collins (R-Maine) and McConnell (R-KY) joined a Senate Resolution introduced by Senator Tim Kaine (D-VA) that would repeal the reciprocal tariff regime announced this week.  The resolution passed by a 51-48 majority.  Passage in the House is unlikely.  The President is almost certainly to veto the bill should the House pass it.  Nevertheless, the resolution’s success in the Senate demonstrates growing willingness to express opposition to President Trump’s aggressive agenda on trade among Republicans.