by Daniel Brouse
April 9, 2025
From Sector-Specific Levies to Unpredictable Pauses, Determining What Tariffs Remain in Effect Has Never Been More Complex
Current Situation
As of April 9, 2025, the United States has implemented a series of tariffs under President Trump’s “reciprocal tariff” policy. Initially, a universal 10% tariff on all imports was set to take effect on April 5, 2025. However, on April 9, 2025, President Trump announced a 90-day pause on tariffs for over 75 countries that opted to negotiate rather than impose retaliatory measures.
Despite this pause, tariffs remain in effect for certain countries, most notably China. The tariffs on Chinese imports have been increased to a total of 145%, escalating the U.S.-China trade conflict.
The situation is dynamic, with ongoing negotiations and potential policy adjustments. For the most accurate and current information, it is advisable to consult official communications from the U.S. Trade Representative or the White House.
There are still significant tariff measures affecting imports from various countries and specific sectors; however, it is not at all transparent as to the actual law. Following is our best guess:
1. Canada and Mexico Tariffs:
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25% Tariff on Non-USMCA-Compliant Goods: On March 4, 2025, the U.S. imposed a 25% tariff on imports from Canada and Mexico that do not meet United States-Mexico-Canada Agreement (USMCA) standards.
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Energy Imports: Canadian energy resources are subject to a reduced tariff of 10%, as per the adjustments made on March 4, 2025.
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Reciprocal Tariffs: In response, Canada has imposed a 25% tariff on U.S. vehicle imports that do not meet USMCA standards.
2. Sector-Specific Tariffs:
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Steel and Aluminum: Effective March 12, 2025, a 25% tariff was applied to imports of steel and aluminum articles, as well as certain derivative products, from all countries.
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Energy Sector: While specific details on energy-related tariffs are limited, the White House has indicated that energy imports may be subject to new tariffs to promote domestic production.
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Lumber: Lumber imports are among the sectors that could face new tariffs, as the administration has warned of potential measures to support domestic industries.
3. Tariff Status and Exemptions:
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USMCA-Compliant Goods: Products that comply with USMCA standards are exempt from certain tariffs, including those on vehicles and specific goods from Canada and Mexico.
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De Minimis Threshold: The U.S. has removed the de minimis exemption for low-value shipments from China, Hong Kong, and Macau, effective May 2, 2025, eliminating the $800 duty-free threshold for these regions.
4. Ongoing Developments:
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Retaliatory Measures: Affected countries, including China, the EU and Canada, have announced retaliatory tariffs in response to U.S. measures, further complicating the trade landscape.
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Future Tariff Considerations: The administration has indicated that additional tariffs may be imposed on sectors such as copper, pharmaceuticals, semiconductors, and lumber to encourage domestic production.
China: Although challenging to calculate precisely, this appears to bring the total tax on imports from China to 165% (updated). It also remains unclear whether the tax on EVs will now rise to 265%.
A 30-35% Tariff Rate
The Economic Reality Behind the Tariff ‘Pause’: A 35% Tariff Rate
On April 9, the effective tariff rate without factoring in China, the United States’ largest trading partner, shifted to 18%. This rate was still the highest we’ve seen since the 1940s. While this sounds like a notable shift, it doesn’t fully capture the broader impact. When we include China in the equation, the story takes an even more dramatic turn. The total effective tariff rate, including both the general tariffs and consumption taxes on Chinese imports, skyrocketed to a range of 30-35%
Resources:
- Liberation (From Your Money) Day: Largest Tax Increase in History
- Tariff Theater: Trump’s Economic War on the World — Including Penguins
- Trade War!
On April 2, President Trump unilaterally declared a trade war against the rest of the world, imposing protectionist tariffs on 180 countries — calling it “Liberation Day.” This action was taken without congressional approval and in direct violation of the Constitution.