Regulating Imports With a Reciprocal Tariff To Rectify Trade Practices That Contribute to Large and Persistent Annual United States Goods Trade Deficits

The order declares a national emergency based on large and persistent U.S. goods trade deficits — which reached $1.2 trillion in 2024 — and imposes an additional 10% ad valorem tariff (a percentage-of-value tax on imports) on all goods entering the United States, effective April 5, 2025. For trading partners enumerated in Annex I, higher country-specific tariff rates replace the 10% baseline starting April 9, 2025. The order also applies equally to goods from Hong Kong and Macau to deter rerouting of Chinese goods, and restricts the use of duty-free de minimis treatment (the exemption for low-value shipments) for affected articles once the Commerce Secretary certifies that collection systems are ready.

Several categories are exempted from these new tariffs, including steel and aluminum already covered by existing Section 232 duties, automobiles and auto parts under a separate proclamation, pharmaceuticals, semiconductors, copper, lumber, critical minerals, and energy products. Canada and Mexico are subject to a distinct tariff regime under earlier border-emergency orders; USMCA-qualifying goods from those countries remain tariff-free, while non-qualifying goods face a 25% rate. The President retains authority to raise, lower, or expand the tariffs based on trading-partner retaliation, cooperation, or further deterioration of U.S. manufacturing capacity.

All U.S. importers, retailers, manufacturers, and consumers who buy or sell goods in international trade. Foreign exporters selling into the U.S. market are directly targeted. Domestic manufacturers and defense suppliers are the intended beneficiaries. Businesses relying on global supply chains — especially those importing from countries in Annex I — face the highest new costs.

Every consumer and business that buys imported goods — from electronics and clothing to industrial parts — faces higher costs immediately. The tariff applies to virtually every product category not already covered by a prior Section 232 action, making it the broadest U.S. tariff action in decades and affecting trillions of dollars in annual trade flows.

The tariffs take effect automatically through modifications to the Harmonized Tariff Schedule — the official list of import duty rates — with Customs and Border Protection collecting duties at the point of entry. A 10% rate hit first on April 5; higher country-specific rates followed on April 9 for Annex I nations. The President can raise rates unilaterally if partners retaliate, lower them if partners cooperate, or increase them further if U.S. manufacturing worsens. The Secretary of Commerce and the U.S. Trade Representative must recommend further action if the emergency is not resolved. Congress receives recurring reports under the National Emergencies Act and IEEPA.