Country-specific reciprocal tariffs have been pushed out until July, but a universal base rate tariff rolled out last week, which covers all countries, and earlier metals tariffs remain in effect. Meanwhile, an all-out trade war between the U.S. and China is intensifying.
Where things stand this week
Steep country-specific tariff rates ranging from 11% to 50% were temporarily paused last week after multiple days of significant stock and bond market turmoil. But plenty of import duties remain in effect, and the fast-changing policy environment is driving a lack of clarity in the recycled commodity trading business.
As of April 15, most goods imported from any country are subject to at least a 10% baseline tariff, and aluminum and steel imports from all countries are subject to 25% tariffs. Automobiles imported from all countries are subject to 25% tariffs.
Goods imported from Mexico and Canada and covered under the U.S.-Mexico-Canada Agreement are eligible to be exempt from those tariffs. That includes recyclables – the USMCA covers “used goods collected in the territory of one or more USMCA country, if such goods are fit only for the recovery of raw materials.”
U.S. importers seeking to bring in products that are covered under the USMCA need to be able to provide some certification that the product originated in North America in order to receive the 0% tariff treatment.
Adam Shaffer, vice president of international trade and global affairs at the Recycled Materials Association, said ReMA has found there’s no real one size fits all approach for recycling companies claiming USMCA origination, because of the varying commodities handled across the industry. Instead, ReMA has been advising members of the broad parameters of what the trade agreement says and doesn’t say.
U.S. Customs and Border Protection provides a template for structuring the certification, and the agency has an instructional video for how to claim preferential treatment. Other Mexican and Canadian imports that aren’t USMCA eligible are subject to 25% tariffs.
Canada has responded with several countermeasures, including tariffs on nearly 60 billion Canadian dollars in imports from the U.S. Mexico has not yet retaliated.
Imports from China, meanwhile, are currently subject to tariffs totaling 145%, and U.S. exports to China are subject to 125% in tariffs, thanks to a series of increasing retaliatory measures between the two countries.Â
Here’s how the new U.S. tariff policies have developed over the past two months:
- Feb. 1: The White House announces 25% import tariffs on Mexico and 25% import tariffs on Canada, to take effect Feb. 4. Certain energy products from Canada get a reduced 10% tariff.
- Feb. 1: White House announces 10% import tariff on all goods from China, to take effect Feb. 4.
- Feb. 3: The White House delays tariffs on both Canada and Mexico, announcing a new implementation date of March 4.
- Feb. 4: The 10% import tariff on Chinese goods takes effect.
- Feb. 10: The White House announces that various country-specific exemptions to an existing 25% steel tariff will end, and an existing 10% aluminum tariff will increase to 25% on all countries. Both actions are planned to take effect March 12.
- March 3: White House announces the 10% tariff on China will increase to 20%.
- March 4: The 25% import tariffs on goods from Canada and Mexico take effect.
- March 6: The White House announces that products that enter the U.S. under the terms of the U.S.-Mexico-Canada Agreement are temporarily exempt from the new tariffs on Canada and Mexico.
- March 12: The 25% tariffs on aluminum and steel take effect.
- March 26: The White House announces 25% tariffs on imported automobiles from all countries, to take effect April 3. For cars imported from Canada and Mexico, the tariff does not apply to parts of the car that are covered under the USMCA.
- April 2: The White House announces tariffs that will take effect on numerous countries on April 5 and April 9.
- April 5: Universal 10% tariff on imports from all trading partners is planned.
- April 9: Country-specific modifications to that universal tariff are planned, targeting countries that have U.S.-specific import tariffs or other actions the White House deems unfair. These tariffs range from 11% to 50%, replacing the 10% universal tariff for that country.
- Some products are exempt from both actions, including steel and aluminum materials already covered by the previous tariffs, automotive products covered by the previous tariffs, products that qualify for USMCA origination preference and products laid out in a White House-issued annex.
- April 2: The White House confirms USMCA-covered imports from Canada and Mexico “will continue to see a 0% tariff,” extending the previously temporary USMCA exemption.
- April 3: The 25% tariffs on imported automobiles take effect.
- April 4: China, which is facing combined tariffs of 54% (20% from the February and March actions and an additional 34% from the April 9 planned action) announces retaliation with a 34% tariff on all U.S. imports, to take effect April 10.
- On the same day, China rolled out new export restrictions on rare earth metals to all countries, requiring Chinese exporters to apply for a new license to move the materials. The move, covering samarium, gadolinium, terbium, dysprosium, lutetium, scandium and yttrium, is expected to sharply curtail supply to the U.S. of key metals used in electronic devices.
- April 5: A universal 10% tariff on all U.S. trading partners takes effect.
- April 8: U.S. raises China’s country-specific tariff from 34% to 84%, in retaliation for China’s retaliation.
- April 9: Country-specific modifications to the universal tariff take effect.
- April 9: China raises retaliatory tariff on the U.S. from 34% to 84%.
- April 9: The U.S. raises China’s country-specific tariff from 84% to 125%. Goods from China now face 145% in combined tariffs, taking into account all the actions of the last few months.
- April 9: The U.S. suspends country-specific tariffs for 90 days, except for China’s. The universal 10% tariff also stays in effect.
- April 11: The U.S. issues a clarification noting that numerous electronics, including smartphones, computers and semiconductors, are exempt from the country-specific tariffs, including on China.
- April 11: China raises its retaliatory tariff on the U.S. from 84% to 125%, matching the U.S. retaliation.
