Trump’s Tariffs: Everything We Know
Tariffs have been the talk of the industry lately. In his first 30 days in office, President Trump has made waves across the globe with his threats and eventual implementation of tariffs on a variety of goods from multiple countries.
Here, we’ll round up where everything stands with each of the top tariff stories.
Canada and Mexico – On February 1, Trump signed an executive order announcing tariffs on goods from Canada and Mexico. The tariffs would be an additional 25% on all goods from Mexico and an additional 25% on all goods from Canada, with the exception of energy resources, which were subject to 10% tariffs. After meeting with leaders from both countries, Trump announced that he would delay these tariffs for 30 days. In return, Mexico’s President Claudia Sheinbaum and Canada’s Prime Minister Justin Trudeau both agreed to implement stricter border security measures in their respective countries. No further announcements have been made on either front, and tariffs remain delayed until at least March 5. The tariffs went into effect on March 5, but tariffs on USMCA-eligible goods from Canada and Mexico have now been delayed again. There is no end date for this exemption.
China – In the same flurry of activity, President Trump also announced additional tariffs on all goods from China. This additional 10% tariff is on top of existing tariffs on Chinese imports. Trump and China’s President Xi Jinping met to discuss the announcement but couldn’t come to a similar resolution as with Canada and Mexico. The tariffs officially went into place at 12:01 AM Eastern Time, with China imposing retaliatory tariffs of 15% tariffs on coal and liquefied natural gas products, and 10% tariffs on crude oil, agricultural machinery and large-engine cars. And unlike previous Section 301 tariffs, there are no exceptions or exemptions for American importers to avoid paying these duties. On March 4, President Trump announced an additional 10% tariff on all goods from China, bringing the total rate to an 20% on top of previously existing tariffs.
De Minimis Exemption – As part of the added tariffs against China, Trump also announced he would be getting rid of the de minimis exemption for low-value goods. Then, on February 7, he reversed course and reinstated the exemption, allowing for shipments valued at $800 or less to enter the country without needing to clear customs.
Steel and Aluminum Tariffs – On Tuesday, February 11 Trump announced more tariffs, this time on steel and aluminum imports, including aluminum derivative and steel derivative products. Effective March 12, 2025, any steel and aluminum products covered by Section 232 duties will be subject to an additional 25% tariff. There are no exemptions to these tariffs and importers will not be able to claim drawback on these duties. Under these tariffs, any product not classified in Chapter 73 or 76 of the HTS will only be taxed on its steel or aluminum content.
Reciprocal Tariffs – Lastly, President Trump announced “reciprocal tariffs” on Thursday, February 13, but hasn’t given too many further details on these. In essence, he plans to impose an equal tariff to match any country that has an existing tariff on American goods. He hasn’t announced a date for when these would go into effect, but we will continue to monitor and provide updates as more information becomes available.
We know there are a lot of moving pieces right now, but Scarbrough is here to help in any way we can. We will continue to monitor all tariff news and will update as needed. But if you have specific questions or need further assistance, please reach out to your Scarbrough representative directly for guidance.
