Updated Timeline of America’s Reciprocal Tariff Strategy, China 125%, Everyone Else 10%

Wall of China

America's Reciprocal Tariff Strategy: On April 2, 2025, President Donald J. Trump announced a sweeping overhaul of U.S. trade policy, introducing reciprocal tariffs to address trade imbalances and promote domestic manufacturing. Branded as “Liberation Day,” the policy aimed to counter non-reciprocal trade practices by imposing a 10% baseline tariff on nearly all imports and higher country-specific tariffs on approximately 60 nations. Since the initial announcement, developments including a partial tariff pause, retaliatory measures from trading partners, and clarifications on tariff calculations have reshaped the landscape. This blog post provides an updated timeline of key events and their implications for importers and supply chains, current as of April 23, 2025.

Key Timeline of Events

January 20, 2025: America’s Reciprocal Tariff Strategy

President Trump signed the America First Trade Policy Memorandum, directing a comprehensive review of the U.S. trade deficit’s causes and impacts. The memorandum tasked agencies with identifying unfair trade practices, setting the stage for reciprocal tariffs to address economic and national security concerns arising from persistent trade imbalances.

February 1, 2025: Tariffs on Canada and Mexico

Trump announced 25% tariffs on imports from Canada and Mexico, effective February 1, citing issues with drug trafficking and immigration. Both nations responded with retaliatory tariffs, with Canada imposing 25% duties on $50 billion of U.S. goods. A 30-day pause was later agreed upon to allow negotiations, reflecting the volatility of early tariff actions.

February 13, 2025: Reciprocal Trade and Tariffs Memorandum

The White House issued a memorandum outlining the “Fair and Reciprocal Plan,” emphasizing the need to counter non-reciprocal trade arrangements. It called for calculating equivalent tariffs based on trade deficits, non-tariff barriers, and other practices like currency manipulation, laying the groundwork for the April 2 announcement.

March 31, 2025: USTR Releases Trade Barriers Report

The U.S. Trade Representative (USTR) published a 397-page National Trade Estimate Report, detailing foreign trade barriers such as high tariffs and regulatory hurdles. The report informed the reciprocal tariff strategy, though the final tariff rates relied more on trade deficit calculations than specific barrier analyses.

April 2, 2025: “Liberation Day” Tariff Announcement

In a Rose Garden speech, President Trump unveiled reciprocal tariffs under the International Emergency Economic Powers Act (IEEPA), declaring a national emergency due to trade deficits. Key measures included:

• A 10% baseline tariff on nearly all imports, effective April 5, 2025.

• Country-specific reciprocal tariffs on 57 nations, effective April 9, ranging from 11% to 50% (e.g., 34% on China, 20% on the EU, 46% on Vietnam).

• Elimination of de minimis treatment for Chinese and Hong Kong shipments, effective May 2, with new postal duties starting at 30%.

The tariffs were calculated by dividing a country’s trade surplus with the U.S. by its exports to the U.S., then halving the result, rather than matching specific tariff rates or barriers. This approach sparked criticism for its simplicity and deviation from true reciprocity.

April 3-4, 2025: Global Retaliation and Market Turmoil

Trading partners swiftly responded:

• China imposed 34% tariffs on U.S. goods starting April 10, later escalating to 84%, alongside export controls on rare earths and sanctions on U.S. companies.

• EU announced plans for countermeasures against the 20% U.S. tariff, while seeking negotiations.

• Canada maintained retaliatory tariffs on U.S. goods, with Ontario Premier Doug Ford offering to lift them if U.S. tariffs were removed.

• Japan and South Korea expressed concern, with Japan’s Prime Minister calling it a “national crisis.”

Global stock markets plunged, with U.S. Dow futures dropping over 900 points and Japan’s Nikkei facing its worst week in years. Economists warned of inflation and potential recessions.

April 8, 2025: U.S. Customs Guidance and Automotive Tariffs

U.S. Customs and Border Protection (CBP) issued operational guidance for importers, detailing how reciprocal tariffs would be applied via the Harmonized Tariff Schedule (HTSUS). Separately, Trump announced 25% tariffs on all auto and auto parts imports, effective immediately, further straining supply chains.

April 9, 2025: Partial Tariff Pause

The White House announced a 90-day suspension of most country-specific reciprocal tariffs, maintaining the 10% baseline tariff and escalating China’s tariffs to 125%. The pause was attributed to over 75 countries engaging in talks to address trade imbalances, though China’s retaliatory actions prompted harsher measures. The decision led to a stock market rally but left businesses uncertain about future policy shifts.

April 10-20, 2025: Ongoing Trade Tensions

China’s tariffs reached 125% on U.S. goods, with additional anti-dumping investigations and export controls. The EU, Japan, and others continued to prepare countermeasures while pursuing dialogue. In Congress, some Republicans explored legislation to limit presidential tariff powers, but a White House veto threat quashed momentum.

Implications for Importers and Supply Chains

The evolving tariff landscape presents significant challenges:

• Cost Increases: The 10% baseline tariff, combined with existing duties (e.g., 20% on Chinese goods for fentanyl-related issues), raises import costs. Chinese goods face duties up to 125%, severely impacting e-commerce and low-value imports.

• Supply Chain Disruptions: The auto tariffs and potential retaliatory measures from the EU and Asia threaten industries reliant on global sourcing. Companies using “China +1” strategies (e.g., Vietnam, Cambodia) face high tariffs, complicating diversification efforts.

• Uncertainty: The 90-day pause offers temporary relief but leaves importers vulnerable to policy reversals. Businesses must monitor CBP guidance and HTSUS updates closely.

• Retaliation Risks: Escalating tit-for-tat tariffs, especially with China, could lock in higher costs and restrict market access for U.S. exporters.

Looking Ahead

The partial tariff pause signals a willingness to negotiate, with over 75 countries engaging with the U.S. However, the exclusion of China and the persistence of the 10% baseline tariff suggest ongoing trade tensions. Importers should:

• Reassess Supply Chains: Explore sourcing from countries with lower or no reciprocal tariffs, though Canada and Mexico remain under separate 25% duties.

• Leverage CBP Resources: Use CBP’s April 8 guidance to navigate HTSUS changes and ensure compliance.

• Monitor Negotiations: The 90-day pause ends July 8, 2025, and outcomes of trade talks will shape the next phase.

The reciprocal tariff strategy remains a high-stakes gamble. While supporters argue it will bolster U.S. manufacturing, critics warn of inflation, supply chain chaos, and global recession risks. As the July deadline approaches, businesses must stay agile to navigate this unprecedented trade environment.

For the latest updates, consult the U.S. Trade Representative’s website or contact our team at Fleischer CHB for tailored import guidance.