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Navigating the Trump Administration’s Sweeping Actions on Tariffs

Washington, D.C. (April 15, 2025) - On April 2, 2025, President Donald J. Trump issued an Executive Order entitled “Regulating Imports with a Reciprocal Tariff to Rectify Trade Practices that Contribute to Large and Persistent Annual United States Goods Trade Deficit” (the “Order”). The Order set sweeping, across-the-board tariffs on virtually all countries with varying tariff rates. The basis of the Order was the International Emergency Economic Powers Act, the Trade Act of 1974, the National Emergencies Act, and Section 232 of the Trade Expansion Act of 1962 (Section 232).

President Trump’s rationale for the Order is addressing the trade deficit and trade relationship asymmetries. More importantly, the Trump Administration asserts that these tariffs are part of a shift from a post-World War II economic order that has outlived its usefulness. The Trump Administration believes that these tariffs will eventually help the U.S. safeguard its domestic manufacturing base, supply chains, and sectors relating to national security.

What the Order Did

The Order initially set baseline tariff increase of 10% effective April 5, 2025, with incoming higher rates for 50 countries with larger trade surpluses effective April 9, 2025, with some exemptions for goods.

The effective tax rate for each country was initially stated in Annex I to the Order. Some notable rates were 34% for China, 20% for the European Union, 46% for Vietnam, 32% for Taiwan, 24 % for Japan, 26% for India, and 25% for South Korea.

Annex II listed the goods and articles exempted from the new tariffs. Notable exemptions included steel and aluminum articles and derivatives, automobiles and automobile parts, copper, pharmaceuticals, semiconductors, lumber articles and energy and energy products, certain critical minerals. Additional articles may eventually become exempt.

The new initiative against semiconductors is a national security investigation initiated by the Secretary of Commerce under Section 232, which has been the basis for prior investigations. The purpose of the investigation is to determine the effect on national security of imports of semiconductors, semiconductor manufacturing equipment, and their derivative products and public comments on the investigation are invited.

The Order permitted de minimis treatment for countries, but not for China, which was still subject to a 10% tariff rate with no de minimis treatment, in order to address the synthetic opioid crisis. The de minimis treatment was also suspended for Hong Kong in order to prevent contravention of China’s de minimis tariff rate.

The Order permitted exemptions for imports form Canada and Mexico, such as the USMCA exemptions. Otherwise, the Order invited countries to engage with the U.S. to address the tariff rates and work for a mutually acceptable resolution.

What Happened Since the Order

On April 9, 2025, President Trump issued another Executive Order entitled “Modifying Reciprocal Tariff Rates to Reflect Trading Partner Retaliation and Alignment” (the Revised Order”). Pursuant to the Revised Order, the tariff ‘s rationale increases were paused for 90 days. However, the Revised Order increased the tariffs on China, in addition to fees on de minimis shipments.

On April 11, 2025, President Trump issued a Presidential Memorandum clarifying exceptions with respect to semiconductors (the “Memorandum”). The Order initially exempted semiconductors from being subject to ad valorem duty rates. The Memorandum clarified that the term “semiconductors” includes a number of products classified within various headings and subheadings of the Harmonized Tariff Schedule of the United States.

However, on April 13, 2025, President Trump made a post on Truth Social claiming that “There was no Tariff ‘exception’ announced on Friday. These products are subject to the existing 20% Fentanyl Tariffs, and they are just moving to a different Tariff ‘bucket.’” It was subsequently reported that Commerce Secretary Howard Lutnick stated that smartphones and other electronics will be subject to new tariffs.

Additional Tariffs on Countries Importing Venezuelan Oil

In related news, President Trump also issued an Executive Order entitled “Imposing Tariffs on Countries Importing Venezuelan Oil” (the “Venezuela Order”). The Venezuela Order’s rationale relates to perceived threats from the Venezuela-based Tren de Aragua organization, and the Venezuelan Government’s failures regarding mass migration and governance. The Venezuela Order places a 25% tariff on any and all countries that import Venezuelan oil, directly or indirectly, and empowers the Secretary of State to identify the countries to which those tariffs will apply.

Key Takeaway

Import laws and regulations remain rapidly changing, and will be subject to future changes once countries respond to the Order and Revised Order, whether by engaging with the U.S. Government for a mutual resolution, or responding with their own additional tariff rates.

Lewis Brisbois’s attorneys are actively engaged in the wide range of legal issues in this area and are advising clients on managing legal and business risk as events continue to develop at an accelerated pace. For more information, contact the author or editors of this alert. Visit our Ukraine Conflict, International Trade, Export, Import and Investment Controls & National Security Practice page for additional alerts in this area.

Author:

Mamoun Mahayni, Associate

Editors:

Andrew Pidgirsky, Partner and Chair of Ukraine Conflict, International Trade, Export, Import and Investment Controls & National Security Practice

Thomas A. Brooks, Partner

Griffen Thorne, Partner

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