Cross Border Trade Updates
April 14, 2025
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- U.S. Reciprocal Tariffs
- On 9 April, President Trump announced a 90-day pause on the increase of reciprocal tariffs listed in Annex I of the original Executive Order.
- The reciprocal tariff for all countries (other than China, Canada, and Mexico) will remain at 10% until 9 July.
- For Canada and Mexico, USMCA-compliant imports are not subject to tariffs, and non-USMCA-compliant imports are still subject to 25% of the IEEPA tariffs related to fentanyl and immigration.
- U.S.-China Trade
- On 11 April, China increased its tariff on U.S. imports to 125% effective 12 April, matching the U.S. tariff of 145% (125% reciprocal tariff plus 20% IEEPA tariff). This announcement came a couple days later after China announced 9 April increasing its retaliatory tariff on U.S. imports to 84%.
- On 8 April, an Executive Order announced that, in response to China’s 34% retaliatory tariffs implemented on 4 April, the previous 34% reciprocal tariff on U.S. imports from China into the United States would be increased to 84% (a 50% delta) starting on 9 April.
- In response to these tit-for-tat actions, the United States increased the reciprocal tariff on imports from China to 125% effective 10 April. The 125% reciprocal tariff will be applied in addition to the already implemented 20% IEEPA tariff related to fentanyl.
- European Union (EU) Retaliatory Trade Action
- On 10 April, the EU announced a 90-day pause on retaliatory tariffs that were reported on 8 April as a response to 25% U.S. steel and aluminum tariffs and set to take effect on 14 April.
- In March, the EU had delayed retaliation from 1 April to 14 April on its initial list (which was developed in 2018 in response to U.S. steel and aluminum tariffs and never imposed) and requested stakeholder input on a broader list of products to target.
- The EU’s finalized retaliation list targets $23 B in US exports but has not been released.
- U.S.-India Trade
- On 11 April, the United States and India finalized terms of reference of talks over the first segment of a bilateral trade deal. As the trade deal is still developing, it is unclear how it will affect PMMI members.
- Legislation Affecting Steel and Aluminum Imports
- On 8 April, Senators Bill Cassidy (R-LA) and Lindsay Graham (R-SC) introduced the Foreign Pollution Free Act, which would impose a fee on imports of industrial goods, including steel and aluminum, based on their manufacturing emissions. If implemented, PMMI members could experience additional import fees for imports of steel and aluminum used in the manufacturing of machinery.
- Fees range from 1-100% on the customs value of imported goods based on how much more pollution-intensive they are compared to equivalent U.S. made goods.
- Legal Actions Against President Trump’s Tariffs
- Actions at the World Trade Center (WTO)
- On 10 April, during the WTO Council for Trade in Goods meeting, the United States said that the new baseline 10% tariff on nearly all imports and “reciprocal” duties on trading partners were imposed under the WTO’s national security exception.
- On 8 April, during the WTO Council for Trade in Goods meeting, China expressed grave concern over President Trump’s reciprocal tariffs saying “the so-called ‘reciprocal tariff’ – a unilateral measure that blatantly violates WTO principles – now threatens to further destabilize global trade”.
- On 7 April, Canada challenged the Trump administration’s tariffs on autos and auto parts at the WTO in a third dispute over the course of a month.
- On 7 April, the United States rejected the EU’s claim that the tariffs on steel and aluminum imposed under Section 232 of the Trade Expansion Act of 1962 are safeguard measures. The United States said that “the measures are covered by the national security exception at the WTO.”
