Understanding the Tariff Impact- June 2025 Update
Over the last few months, several changes were made to the tariff structure related to goods imported into the US. Timelines and specific rates continue to be subject to ongoing negotiations and changes.
Effective April 9, 2025, the US agreed to a 90-day pause on “reciprocal” tariffs impacting key trading partners including Malaysia, Thailand, and Indonesia but excluding China. The new tariffs were to be in addition to any previously imposed levies.
Effective May 14, 2025, the US and China agreed to pause the reciprocal tariffs each had imposed just weeks prior. Through August 11, tariffs imposed on Chinese goods will drop from at least 145% to a base of 30%. Tariffs imposed prior to the reciprocal rates remain applicable.
What to Expect Going Forward
• The 90-day pause on non-China is set to expire on July 9
Pending no further negotiation, it is expected that goods entered for consumption or withdrawn from a warehouse for consumption on or after July 9 will have the original Annex I rates applied (11- 50%).
Previously Published Tariff Rates to Key Trading Partners include Malaysia: 24%, Thailand: 37%, Indonesia: 32%, Vietnam: 46%, Cambodia: 49%, India: 27% and Sri Lanka: 44%
• The 90-day pause for China is set to expire at midnight, August 11.
With respect to goods entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. eastern daylight time on May 14, 2025, all articles imported into the customs territory of the United States from China (including Hong Kong and Macau), are subject to an additional 10% tariff, plus all exemptions and previously applied rates. Pending no further negotiation, it is expected that goods entered for consumption or withdrawn from a warehouse for consumption on or after Aug 12, 2025, will be subject to the (Annex I) China rate of 34% plus the previously imposed 20%.
Further evidenced in the timeline provided below, all tariff announcements and the subsequent execution of all tariffs continue to be very fluid in both size and scope.
Trade negotiations throughout the world are ongoing and are subject to correction at any time.
Abbreviated Tariff Timeline- Key Events
January 2025: Upon taking office, President Trump reiterated promises to "tariff and tax foreign countries."
February 4, 2025: New 10% tariffs begin on all imports from China.
March 4, 2025: The 25% tariff on imports from Mexico and Canada begin. Following the announcement of countermeasures, Chinese imports are doubled to 20%.
March 6, 2025: President Trump postpones 25% tariffs on many imports from Mexico and some imports from Canada for 30 days.
April 2, 2025: President Trump issues an executive order assigning a 10% baseline tariff to more than 60 countries and provinces to begin April 5. The executive order also announced higher “reciprocal” tariffs ranging from 11% to 50% against specific countries. The higher amounts, scheduled to begin April 9, are directed to many key trading partners, including China, Malaysia, Thailand, and Indonesia. The new tariffs to be added on top of previously imposed levies, including 20% on all Chinese imports.
April 5, 2025: The baseline 10% tariff (not including any tariffs previously in place) began on all imported goods.
April 8-9, 2025: Many key trading partners, including China, Malaysia, Thailand, and Indonesia began to receive “reciprocal” tariffs. However, hours later, President Trump announced a 90-day pause on much of his Reciprocal Tariff Policy excluding China. The 10% base tariffs remain intact for all. In response, China announces additional retaliatory measures.
April 9, 2025: In a subsequent announcement, President Trump reacts to Chinese countermeasures by increasing US tariffs on goods from China. The rates climbed from 34% then to 84% and then to 125%.
April 10, 2025: The White House releases a statement clarifying the tariffs against China. Instead of 125%, the rate is stated to be 145% (125% +20%)
April 11, 2025: China vows to raise tariffs on US goods from 84% to 125% as a retaliatory measure.
May 12, 2025: China and the US agree to a 90 day pause on tariffs. During the pause, the 145% duties imposed on imports from China are reduced to 30%. China agrees to cut its 125% tariffs on U.S. goods to 10%. The pause and temporary reductions are scheduled to begin May 14.
May 23, 2025: The trade war with EU escalates. President Trump promises a 50% tariff on all imports from the 27-nation bloc. Two days later, the administration announces a pause in implementation citing the need for additional negotiation.
May 23, 2025: President Trump threatens 25% tariffs on all imported smartphones, including those from China.
May 28, 2025: In response to one of 5 pending lawsuits on the matter, the U.S. Court of International Trade (USCIT), rules to halt some reciprocal tariffs, including the 10% universal tariff. Immediately following the ruling, the administration filed a notice of appeal to the U.S. Court of Appeals for the Federal Circuit.
May 29, 2025: The federal appeals court stays the decision, allowing for the tariffs to remain in place for the time being.
June 4, 2025: The 50% tariff on steel and aluminum imports begins.