Dentons US LLP
04/03/2025 | News release | Distributed by Public on 04/03/2025 15:41
US announces “reciprocal tariffs”: No additional pain for Canada (for now)
April 3, 2025
As has been widely reported, the Trump administration has announced sweeping tariffs on all goods entering the United States, with additional so-called "reciprocal" tariffs applicable to many countries. The rest of the world now faces similar measures Canada and Mexico have been subject to since early March. It is expected that many countries will soon impose the kind of countermeasure tariffs Canada has already implemented.
The tariffs are being imposed by Executive Order under the authority of the International Emergency Economic Powers Act (IEEPA). Starting on April 5, 2025, a minimum 10% tariff will apply to all goods entering the United States. On April 9, 2025, country-specific additional tariffs will be imposed on selected countries. A country-by-country table of these tariffs was published by the White House and is reproduced below.
Some goods will be excluded from these tariffs, notably:
- Standard IEEPA exceptions (personal communications, donated articles, informational materials and transactions ordinarily incident to travel);
- Articles and derivatives of steel and aluminum subject to section 232 tariffs;
- Automobiles and automotive parts subject to section 232 tariffs;
- Certain copper, pharmaceuticals, semiconductors, lumber articles, critical minerals, energy and energy products;
- Certain listed goods included in Column 2 of the Harmonized Tariff Schedule of the US (HTSUS).
The above exclusions are specifically included in Annex II of the Executive Order.
The Executive Order also clarifies that reciprocal tariffs will apply to the non-US content of an import, provided at least 20% of the value of the subject article is US-originating. In other words, for goods with over 20% US content the tariffs will apply only to the non-US content.
The White House Fact Sheet is available here: https://www.whitehouse.gov/fact-sheets/2025/04/fact-sheet-president-donald-j-trump-declares-national-emergency-to-increase-our-competitive-edge-protect-our-sovereignty-and-strengthen-our-national-and-economic-security/.
The Executive Order implementing the tariffs is available here: https://www.forth.news/whpool/CMkceWD6EcSnCbNd6bGkD.
Canada (like Mexico) avoided additional tariffs. The reciprocal tariffs are not currently applicable to goods that qualify as originating under the Canada United States Mexico Agreement (CUSMA). However, Canada remains subject to the 25% tariffs imposed under the International Emergency Economic Powers Act since March 4, 2025, the 25% steel and aluminum tariffs imposed since March 12, 2025, and the auto and auto parts tariffs announced on March 26, 2025. The conditions under which these tariffs are imposed remain unchanged.
Previously announced tariffs on automobiles and parts came into force at 12:01 AM on April 3, 2025. In response, the Government of Canada announced that its retaliating against US tariffs on automotive products with a 25% tariff of its own on vehicles from the US that do not meet the rules of origin requirements in the CUSMA. During his press conference announcing these new countermeasures, Prime Minister Carney stated that these countermeasures will apply to the non-Canadian content of CUSMA-compliant vehicles from the United States and clarified that these new auto tariffs would not apply to auto parts nor affect vehicle content from Mexico.
The Dentons Canada trade team is assisting clients with US tariffs and Canadian countermeasures in several ways including:
- Assessing the impact of the tariffs and exclusions;
- The process for seeking exclusion from or remission of the tariffs and counter-tariffs;
- Drawback and other duty relief programs;
- Government relations in connection with the tariffs, countermeasures and support for affected business;
- Helping business assess their supply chain options;
- Issues related to the classification and origin of goods; and
- Contractual drafting issues and disputes.
Our integrated team of legal and public policy professionals across Canada and the US is actively tracking developments, and we are here to help you anticipate and respond to changes. For any questions, please reach out to Paul Lalonde and Sean Stephenson in Canada and Michael Zolandz and Susanne Cook in the United States.
Visit our Navigating today's shifting tariff and trade environment hub for additional resources.
Sign up here to receive regular updates and invitations to our webinar series, Border Talks, designed to provide timely updates on the evolving Canada-US political, business and legal landscape.
ANNEX I
| Countries and Territories | Reciprocal Tariff, Adjusted |
| Algeria | 30% |
| Angola | 32% |
| Bangladesh | 37% |
| Bosnia and Herzegovina | 36% |
| Botswana | 38% |
| Brunei | 24% |
| Cambodia | 49% |
| Cameroon | 12% |
| Chad | 13% |
| China | 34% |
| Côte d`Ivoire | 21% |
| Democratic Republic of the Congo | 11% |
| Equatorial Guinea | 13% |
| European Union | 20% |
| Falkland Islands | 42% |
| Fiji | 32% |
| Guyana | 38% |
| India | 27% |
| Indonesia | 32% |
| Iraq | 39% |
| Israel | 17% |
| Japan | 24% |
| Jordan | 20% |
| Kazakhstan | 27% |
| Laos | 48% |
| Lesotho | 50% |
| Libya | 31% |
| Liechtenstein | 37% |
| Madagascar | 47% |
| Malawi | 18% |
| Malaysia | 24% |
| Mauritius | 40% |
| Moldova | 31% |
| Mozambique | 16% |
| Myanmar (Burma) | 45% |
| Namibia | 21% |
| Nauru | 30% |
| Nicaragua | 19% |
| Nigeria | 14% |
| North Macedonia | 33% |
| Norway | 16% |
| Pakistan | 30% |
| Philippines | 18% |
| Serbia | 38% |
| South Africa | 31% |
| South Korea | 26% |
| Sri Lanka | 44% |
| Switzerland | 32% |
| Syria | 41% |
| Taiwan | 32% |
| Thailand | 37% |
| Tunisia | 28% |
| Vanuatu | 23% |
| Venezuela | 15% |
| Vietnam | 46% |
| Zambia | 17% |
| Zimbabwe | 18% |