Broad-Based U.S. Tariffs Announced

On April 2, 2025, the White House imposed a variety of new tariffs, from a universal baseline tariff to nation, product, and commodity specific duties (Executive Order).

On Wednesday, May 28, a three-judge panel at the U.S. Court of International Trade (USCIT) in New York ruled that the Trump Administration exceeded its Executive Branch authority under the International Emergency Economic Powers Act (IEEPA) to implement a 30% tariff on China, 25% tariff on certain goods from Mexico and Canada, and 10% universal base-line duties for the majority of U.S. trading partners. The court ordered that four of the President’s Executive Orders in relation the Administration’s tariff policies are invalid and must be repealed. The Administration’s 25% steel, aluminum, and auto tariffs, however, remain in effect.

Minutes after the USCIT ruling, the Trump Administration filed a notice of appeal to the U.S. Court of Appeals for the Federal Circuit in Washington, D.C. The case may also later be appealed to the Supreme Court.

What You Need to Know:

• There is a 10% "reciprocal" baseline tariff. These are across-the-board levies on all imports, effective April 5, 2025. 
• On April 9, the Trump Administration announced a 90-day pause on a proposed “discounted reciprocal tariff” set to affect 57 nations. These tariffs, targeting countries identified by the White House as engaging in unfavorable trade practices, included rates such as 24% on Japan and 20% on the European Union. The pause allows for ongoing negotiations between the Administration and the affected countries to address trade concerns.
• Following waves of initial and retaliatory tariffs between the U.S. and China, the rate on most imports from China escalated to 145% when accounting for IEEPA border security and fentanyl tariffs. China retaliated with their own duties on U.S. imports with a 125% rate effective April 11. On May 12, 2025, the U.S. and China agreed to reduce reciprocal tariffs by 115%, setting most Chinese imports to the U.S. at 30% and U.S. exports to China at 10% for a 90-day period. Ongoing negotiations will address non-tariff barriers to Chinese markets, focusing on currency manipulation and the illicit drug trade.
• On May 8, the Trump Administration announced its first major trade deal with the United Kingdom with specific tariff reductions for ease of market access to beef, ethanol, steel, aluminum, and autos. However, the 10% baseline duty remains in effect. 
• Canada and Mexico are exempt from the proposed reciprocal tariff regime. However, most imports from these countries face a 25% tariff due to concerns raised by President Trump regarding their roles in the fentanyl crisis and illegal immigration. Compliant goods covered under the United States-Mexico-Canada Agreement (USMCA) remain eligible for exemptions.
• Trump’s 25% tariffs on foreign-made automobiles took effect April 3, 2025. Auto parts are included in this 25% rate effective May 3. 
• President Trump’s Administration is considering or discussing the inclusion of copper, lumber, pharmaceuticals, and semiconductors in the evolving tariff policies.
• The Tax Foundation maintains a Trump Administration tariff timeline and further details regarding their economic effects.

• The U.S. Chamber of Commerce provides further context of how broad-based tariffs put U.S. growth at risk.

​Commerce Lexington's policy team is committed to keeping you informed as tariff policies continue to develop. 

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In response to Canadian tariffs, both of Kentucky’s U.S. Senators Mitch McConnell and Rand Paul, joined fellow Republicans Susan Collins of Maine, Lisa Murkowski of Alaska, and all Senate Democrats to pass a resolution against undoing those specific duties on April 2. The resolution passed 51-48, with an unlikely future passage out of the Republican controlled U.S. House.

Commerce Lexington supports open trade policies with markets abroad and removing barriers that shut U.S. exports out of foreign markets.  The organization also supports efforts to implement fewer federal regulations and less taxation to grow our economy. However, we remain concerned about the potential negative economic impact of tariff policies on key industries in the Greater Lexington Region, Commerce Lexington will continue to monitor these issues, talk with business leaders, and communicate concerns to federal officials.  If your businesses or organization is concerned about tariff impacts, please contact Commerce Lexington to share feedback. 

Commerce Lexington is currently planning the annual D.C. Fly-In on July 9-10, 2025, where key leaders of the Greater Lexington business community will meet with key policymakers on Capitol Hill and in the Trump Administration. For more information or to register for the D.C. Fly-In, click here.