US sets 10% baseline tariff, then pauses higher rates

President Donald J. Trump on April 2, 2025, declared that foreign trade and economic practices had created a national emergency and ordered tariffs on imports from all countries.

The April 2 order

Using the International Emergency Economic Powers Act, the order set a 10% tariff on all countries, effective 12:01 a.m. EDT on April 5.

Higher, individualized "reciprocal" tariffs on the countries with which the U.S. had the largest trade deficits were to take effect at 12:01 a.m. EDT on April 9. All other countries would stay at the 10% baseline.

The White House said the U.S. goods trade deficit exceeded $1.2 trillion in 2024.

Exclusions

The White House said some goods would not be subject to the reciprocal tariff, including steel and aluminum articles and autos and auto parts already subject to Section 232 tariffs; copper, pharmaceuticals, semiconductors and lumber; bullion; and certain energy and minerals not available in the U.S.

For Canada and Mexico, the existing fentanyl and migration orders stayed in effect. USMCA-compliant goods would continue to see a 0% tariff, while noncompliant goods would see 25%, and noncompliant energy and potash 10%.

Autos

A week earlier, on March 26, Trump signed a Section 232 proclamation imposing a 25% tariff on imported passenger vehicles and light trucks and on key parts, including engines, transmissions, powertrain parts and electrical components.

The White House said importers of USMCA vehicles could certify U.S. content so the tariff applied only to non-U.S. content, and that USMCA-compliant parts would remain tariff-free until a process to tax their non-U.S. content was set up.

The pause

The country-specific rates lasted one day. Under an April 9 executive order, U.S. Customs and Border Protection said the rates that took effect April 9 were suspended. From 12:01 a.m. ET on April 10, products of other countries faced the 10% rate.

Products of China, including Hong Kong and Macau, were assessed an additional 125% duty from the same time, CBP said.

What it meant for carriers

CBP guidance meant importers faced three changes in duty rates within six days, from April 5 to April 10. Goods from China faced the steepest increase.