Cross Border Trade Updates

April 7, 2025

U.S. Reciprocal Tariffs
- On 2 April, President Trump announced reciprocal tariff actions on imports into the United States. The Executive Order (EO) was published soon after, along with a Fact Sheet. Based on 2024 full year data for the top 10 sourcing markets for PMMI-related machinery, the reciprocal tariffs are estimated to result in additional tariff costs of $1.3 B on $6.1 B of imports, or an average of 21%.
- CBP has issued guidance on the new tariffs that took effect on 5 April. Note, that shipments must be loaded, in transit on the final mode of transit before 5 April AND entered before 27 May to avoid the additional 10% duty. CBP will issue separate guidance for the actions that are effective on 9 April 2025.

China Retaliatory Trade Action
- On 4 April, China announced multiple retaliatory trade actions against U.S. reciprocal tariffs. The actions include a 34% tariff on all U.S. imports that will be implemented on 10 April, a ban on poultry and sorghum products from six U.S. companies, and the addition of eleven U.S. companies (in the technology industry) to China’s “unreliable entities” list prohibiting the companies from engaging in import/export and investment activities in China.
  - On 7 April, President Trump announced on Truth Social that “If China does not withdraw its 34% increase above their already long term trading abuses by tomorrow, 8 April , the United States will impose ADDITIONAL Tariffs on China of 50%, effective 9 April 2025.
- Based on 2024 full year data, we estimate that China’s retaliatory tariff will result in $18.5 M additional tariff costs on $54.3 M PMMI member’s U.S. manufactured food processing and packaging machinery.

European Union (EU) Retaliatory Trade Action
- On 7 April, the European Commission has offered the United States a deal to remove tariffs on all industrial goods as part of the trade negotiations, Ursula von der Leyen has said while stressing her intention to retaliate against Donald Trump's policies should talks fail. As scope is not given, it is unclear how this would affect PMMI members.

U.S. Amends Tariffs on Low-Value Imports from China and Hong Kong
- On 7 April, the United States published an amendment to tariffs on China, which eliminates the de minimis exemption for low-value imports from China and Hong Kong. Additionally, effective 2 May 2025, the amendment imposes two duty options for postal items:1) the ad valorem duty 30% of the value of the merchandise , and 2) a specific duty if $25 per item for goods entered for consumption between 2 to 31 May 2025, and $50 per item for goods entered for consumption starting 1 June 2025.

Vietnam Issues Temporary Anti-dumping Tax on some Galvanized Steel Products Originating from China and Korea
- On 1 April, Vietnam’s Ministry of Industry and Trade issued a temporary anti-dumping tax of up to 37.13% on some galvanized steel products originating from China, and up to 15.67% for some products from South Korea. The tariffs will take effect 16 April and be in place for 120 days. No relevant PMMI food processing machinery codes were listed.

Legal Actions Against President Trump’s Tariffs
- On 7 April, a group of businesses and lawyers filed a suit in Florida that challenges President Trump’s tariffs arguing that he does not have legal authority to impose them.
- On 2 April, the Senate voted 51-48 in favor of a Democratic led measure to revoke President Trump’s tariffs on Canada. Senate Republican Mitch McConnell said that “tariffs make it more expensive to do business in America, driving up costs for producers and consumers across the board”.

The Office of the United States Trade Representative (USTR) Releases 2025 National Trade Estimate Report
- On 31 March, the USTR submitted the 2025 National Trade Estimate Report (NTE) to President Trump and Congress. The NTE is an annual report detailing foreign trade barriers faced by U.S. exporters and USTR’s efforts to reduce those barriers.
- The 2025 NTE report underscores President Trump’s America First Trade Policy and the President’s 2025 Trade Policy Agenda.

Actions at the World Trade Organization (WTO)
- On 4 April, China filed a complaint against U.S. reciprocal tariffs at the WTO saying that the measures violate WTO rules and requests consultations.
- On 2 April, Brazil’s Ministries of Foreign Affairs and Development, Industry, Trade and Services issued a statement regarding President Trump’s reciprocal tariffs stating that they are considering “appealing to the World Trade Organization”.