Legis
Trade
Executive order · Wednesday 2 April 2025

Regulating Imports with a Reciprocal Tariff to Rectify Trade Practices that Contribute to Large and Persistent Annual United States Goods Trade Deficits

Trump declares a trade emergency and imposes broad new tariffs to counter non-reciprocal trade practices.

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The order applies a baseline 10% tariff to most imports and higher country-specific rates to designated trading partners, aiming to reduce goods trade deficits and strengthen domestic production.

What the order does

  • Imposes an additional 10% tariff on most imports beginning April 5, 2025.
  • Applies higher country-specific tariff rates listed in the order’s annex beginning April 9, 2025.
  • Exempts specified goods, including products already covered by certain steel, aluminum, automobile, and auto-parts tariffs, as well as listed copper, pharmaceutical, semiconductor, lumber, critical-mineral, and energy products.
  • Preserves separate tariff rules for Canada, Mexico, and low-value imports from China.
  • Applies tariffs only to foreign content when an imported product has at least 20% U.S. content.
  • Authorizes tariff increases after retaliation or worsening U.S. manufacturing, and reductions when trading partners address non-reciprocal practices.
  • Directs trade, commerce, security, and economic officials to implement the tariffs and report to Congress.

Who it affects

  • U.S. importers bringing covered foreign goods into the country.
  • Foreign exporters and trading partners subject to the baseline or country-specific tariffs.
  • U.S. manufacturers, farmers, defense suppliers, and other producers competing with imports or seeking foreign-market access.
  • Businesses using foreign inputs, including goods processed through foreign-trade zones.