Trump’s Tariffs: Everything We Know
Tariffs have dominated the industry throughout the first half of the year. Both their enforcement, and the uncertainty surrounding them have created headaches for shippers and logistics providers. At Scarbrough, we are here to help you navigate the changing regulations and keep you up to date on the most recent developments.
To date, the Trump administration has issued six new tariff measures in first half of 2025. The first order was implemented at the beginning of March with subsequent orders continuing as recently as early as August. We expect more to come throughout the rest of the year but below is a summary of the major tariff actions to date.
IEEPA Fentanyl – These tariffs, enacted under the International Emergency Economic Powers Act (IEEPA), were intended to address the illicit trade of fentanyl across the US’s northern and southern border, as well as small parcel shipments from China. The scope of these tariffs has changed from March to present, with the current rates below being the most recent status.
Implementation: March 4th, 2025
Countries Affected: China, Mexico, and Canada
Duty Rates:
China – 20%
Mexico – 25% on non-USMCA-qualifying goods
Canada – 35% on non-USMCA-qualifying goods
Note: Items subject to Section 232 tariffs for automobiles or automotive parts are not subject to this 25% tariff, regardless of USMCA status.
Section 232 Steel and Aluminum Derivatives – expansion of existing Section 232 tariffs to include derivative and finished goods requiring new Customs data points, such as country of melt and pour for steel goods and country of smelt and cast for aluminum goods. Intended to boost domestic steel production
Implementation: March 12th, 2025
Countries Affected: All countries, most notably removing previous country-specific exemptions from Mexico and Canada and removing all previously established quota-enforced exclusions for certain other countries.
Duty Rate: The below rates are based on the steel and aluminum content of the derivative good, meaning the value of the steel or aluminum content can be declared separately to reduce the duty amount on an item.
United Kingdom – 25%
Russia (aluminum only) – 200%
All other – 50%
Note: Items subject to Section 232 tariffs for automobiles or automotive parts are not subject to this additional duty.
Section 232 Automobiles and Automotive Parts – Tariffs on foreign-made passenger vehicles/light trucks, and certain components for those same vehicles. The goal of these tariffs is to bring manufacturing of automobiles back to the U.S. and produce more U.S.-origin automobiles and parts.
Implementation:
Automobiles: April 3, 2025
Parts: May 3, 2025
Countries Affected: All countries, with minor exceptions for Mexico and Canada
Duty Rate: 25%
Automobiles – If USMCA-eligible, importers may apply to pay only the 25% duty on the non-U.S.-originating content of the vehicle if approved (valid for Mexico and Canada only).
Automotive Parts – If USMCA-eligible, currently parts are exempt until such a time that a review process to apply duties only to the non-U.S.-originating content can be established.
IEEPA Reciprocal – Tariffs designed to reduce the trade deficit by addressing tariff and non-tariff barriers globally. These tariffs have fluctuated often since their implementation in April, with certain countries seeing increases, other seeing reductions, and a very select few seeing exemptions altogether.
Implementation: April 9, 2025, but later modified on a per country basis
Countries Affected: All countries except for Mexico and Canada, with a clause that allows for the option to include Mexico and Canada at a later date.
Duty Rates: Modified at various points since implementation, but current country-specific rates can be found in the executive order under Annex I.
Note: These tariffs stack with IEEPA Fentanyl, IEEPA Brazil, and IEEPA Russian Oil. They are exempt on any item which is subject to Section 232 duties.
IEEPA Brazil – Targets Brazilian policies deemed inconsistent with U.S. foreign and economic policy. These tariffs were enacted with the goal of pressuring Brazil to begin working toward more U.S.-friendly policies in the future.
Implementation: August 6, 2025
Countries Affected: Brazil
Duty Rate: 40%
Note: Stacks with IEEPA reciprocal tariffs. Exempt on any item which is subject to Section 232 duties.
IEEPA Russian Oil– Additional tariffs on India for continued importation of Russian oil/products, aimed at reducing Indian support of Russia during the war with Ukraine.
Implementation: August 27, 2025 (pending)
Countries Affected: India
Duty Rate: 25%
Note: Stacks with IEEPA reciprocal tariffs. Exempt on any item which is subject to Section 232 duties.
