The US Government has announced the details of the reciprocal tariffs to be implemented on April 5th at 12:01 EST. Below are the key takeaways from the Executive Order:
For Canadian and Mexican Origin Goods:
The current preferential tariff treatment allowed under USMCA will continue for qualifying equipment. Canadian and Mexican goods will benefit from a 0% tariff rate, provided they meet the regional value content for USMCA applicability. This provision of the order maintains the status quo for equipment imported to the U.S. from Canada or Mexico.
Canadian and Mexican-originating goods that do not qualify for USMCA will continue to receive an additional 25% tariff and energy goods at 10%. Should the International Emergency Economic Powers Act (IEEPA), through which these tariffs were originally imposed, be terminated, these tariffs will be replaced with a 12% tariff on all non-USMCA qualifying goods.
The previously reported steel aluminum, automotive, and auto parts tariffs will remain in place.
For All Other Foreign Origin Goods:
All other countries will receive a 10% minimum tariff on imports into the US, with additional tariffs for certain countries as listed in the Executive Order.
NAEDA is continuing to monitor announcements and meet with legislators and administrative officials to represent dealers at the policy level. With our DC fly-in scheduled for next week, we will be communicating our priorities with elected officials and gleaning more insight into the shape further negotiations on tariffs will take. You will also be receiving communication from NAEDA related to ongoing discussions with specific manufacturers. It is our goal to be as comprehensive as possible in looking out for the dealer as changes are implemented as a result of tariff policy.
If you have any questions or comments, please reach out to me directly.
