Policy alert: 10 percent or greater tariffs announced on imports into the U.S.

Fishing rods and reels in the ocean © American Sportfishing Association

On April 2nd, President Donald Trump issued an Executive Order (EO) imposing significant new tariffs at rates ranging from 10-50% on virtually all U.S. imports from all countries. These tariffs will be stacked on top of existing tariffs, duties, taxes and fees. Using the International Emergency Economic Powers Act (IEEPA), a baseline 10% tariff will go into effect on April 5th followed by country-specific rates on April 9th.

An additional EO was announced to terminate de minimis entry, in which certain low value imports can enter the country duty free, for Chinese origin goods beginning May 2nd. Additionally, de minimis entry will be terminated for all other countries once the Commerce Secretary notifies the President that "adequate systems" are in place to process shipments and collect tariff revenue. Eliminating de minimis entry for fishing equipment has been a longstanding industry priority.

Products subject to actions already taken and actively being considered for action under Section 232 (e.g., aluminum derivatives) are exempt from the new tariffs. Imports from Canada and Mexico subject to 25% tariffs are also not impacted by the new tariffs, however slight modifications were made to those previously issued orders.

Notably, the new tariffs will only apply to the non-U.S. content of an import, provided at least 20 percent of the value of the import is U.S.-originating. Customs and Border Protection is charged with verifying all required information and making this determination.

Unlike previously issued IEEPA tariffs, the EO does not prohibit the use of duty drawback for the baseline or county-specific tariff. It is unclear at this time whether that is intentional or an oversight.

U.S. Foreign Trade Zones must admit impacted products as privileged foreign status.

Key country-specific rates are as follows, and includes countries for which the U.S. maintains a free trade agreement with:

• Cambodia: 49 percent
• Vietnam: 46 percent
• Bangladesh: 37 percent
• Thailand: 36 percent
• China (including Hong Kong and Macau): 34 percent
• Indonesia: 32 percent
• Taiwan: 32 percent
• Pakistan: 29 percent
• India: 26 percent
• South Korea: 25 percent
• Japan: 24 percent
• European Union: 20 percent
• Nicaragua: 18 percent
• Philippines: 17 percent
• Honduras: 10 percent