US has imposed reciprocal tariffs, which will be effective from 5th April 2025. The tariffs have been imposed to address the national emergency posed by the large and persistent trade deficit.
A baseline tariff of 10% has been imposed across the board on all goods imported into USA. Good entering the country or withdrawn from warehouse for consumption after 12:01 Eastern Daylight Time on 5th April 2025 shall be subject to these duties.
For countries specified in Annex I, the reciprocal tariffs would be increased to a higher rate, as mentioned in Annex I. The higher tariffs would become effective from 12:01 Eastern Daylight Time on 9th April 2025. Imports from India would be subject to an ad valorem tariff of 27%.
The reciprocal tariffs would not apply to the following –
- Imports of goods mentioned in Annex II.
- Articles subject to 50 USC 1702(b)
- Steel and aluminium articles, and autos / auto parts already subject to Section 232 tariffs
- Copper, pharmaceuticals, semiconductors, and lumber articles
- All articles that may become subject to future Section 232 tariffs
- Bullion
- Energy and other certain minerals that are not available in USA
- Imports from Canada and Mexico that are subject to IEEPA orders
It has been notified that such reciprocal tariffs may be increased if trading partners retaliate, or the tariffs may be decreased if trading partners take significant steps to remedy non-reciprocal trade arrangements and align with the United States on economic and national security matters.
Annex I - https://www.whitehouse.gov/wp-content/uploads/2025/04/Annex-I.pdf
Annex II - https://www.whitehouse.gov/wp-content/uploads/2025/04/Annex-II.pdf
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
