Trump Announces Sweeping Reciprocal Tariffs

Reciprocal Tariffs Don't Apply to Canada and Mexico or to Goods Covered (or soon to be covered) by Section 232 Tariffs

On April 2, 2025, President Trump signed an Executive Order (EO) imposing reciprocal tariffs on most nations. The new tariffs, which include a baseline rate of 10 percent as well as higher rates for dozens of trading partners, are being imposed under the International Emergency Economic Powers Act of 1977 (IEEPA) in response to a national emergency, declared in the EO, posed by large and persistent trade deficits.

Specifically, the EO notes that the "trade deficit reflects asymmetries in trade relationships that have contributed to the atrophy of domestic production capacity, especially that of the U.S. manufacturing and defense-industrial base. These asymmetries also impact U.S. producers' ability to export and, consequentially, their incentive to produce." The EO highlights both tariff and non-tariff barriers. This advisory provides additional