Recent executive orders issued under the authority of the International Emergency Economic Powers Act (IEEPA) introduce significant changes to trade regulations that customs brokers and importers should be aware of. These developments involve new universal tariffs, changes to de minimis entry eligibility, and updates to existing trade enforcement measures.
Key Highlights
1. Universal Tariff Implementation
A universal 10% tariff on most imported goods will take effect beginning April 5, 2025, at 12:01 a.m. ET. Goods already in transit before that time will not be subject to the new duty. Certain countries will face higher reciprocal tariffs, as outlined in a forthcoming annex, with those additional rates taking effect on April 9, 2025.
2. Country-Specific Tariff Adjustments
Some countries will be subject to tariffs exceeding 10%. For customs purposes, this includes territories that may be politically or economically aligned. Goods in transit before the implementation date will not be subject to the additional rates.
Exemptions from Additional IEEPA Tariffs
Certain products will not be subject to the IEEPA-imposed tariffs, including:
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Personal-use items and humanitarian goods as outlined under existing exemptions.
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Products already subject to Section 232 tariffs such as:
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Steel and aluminum (including derivatives)
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Passenger vehicles and auto parts
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Products explicitly listed in an upcoming exemption annex, such as:
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Copper
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Pharmaceuticals
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Semiconductors
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Lumber
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Specific critical minerals
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Energy-related products
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Goods originating from specific jurisdictions subject to Column 2 duty rates under U.S. tariff law (e.g., certain restricted countries) are also exempt.
Trade Adjustment Provisions
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Retaliation Clause: Should a foreign country retaliate against U.S. exports, tariffs may be increased or expanded.
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Compliance Incentives: Tariffs may be reduced if a country addresses trade imbalances or enters into reciprocal agreements.
FTZ and Duty Drawback Impacts
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Goods entering U.S. Foreign Trade Zones (FTZs) after April 9 must do so under privileged foreign status unless eligible for domestic status admission.
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No express limitations have been introduced regarding duty drawback claims on these tariffs.
Changes to Section 321 (De Minimis) Eligibility
Goods from certain countries—particularly those with origin designations linked to trade deficits—will no longer be eligible for duty-free treatment under Section 321 for de minimis shipments. The removal of this eligibility will be phased in with critical dates as follows:
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Non-international postal shipments from these countries become ineligible for de minimis entry starting May 2, 2025.
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International postal shipments will be subject to the following duties:
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30% of item value (from May 2, 2025)
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Or a flat rate of $25 per item (until May 31, 2025)
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Or $50 per item (starting June 1, 2025)
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Carriers will be required to pay these duties and report the number and value of such shipments. Additional entry documentation may be mandated by customs authorities.
Auto and Auto Parts Tariffs
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Autos: Beginning April 3, 2025, a 25% tariff applies to designated passenger vehicles and light trucks.
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Auto Parts: Starting May 3, 2025, the same tariff rate will apply to engines, transmissions, electrical components, and other key vehicle parts.
Aluminum Derivatives Expansion
Two new products have been added to the list of aluminum derivatives subject to a 25% tariff beginning April 4, 2025:
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Beer classified under HTSUS 2203.00.00
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Empty aluminum cans under HTSUS 7612.90.10
