Market Intelligence U.S. Tariff Policy: A Quick Overview

2025.11.05

U.S. Supreme Court holds first hearing on tariffs imposed under the International Emergency Economic Powers Act (IEEPA)

•  The key issue is to determine the legality of President Trump’s imposition of tariffs under IEEPA
•  Previously, lower courts ruled that imposing tariffs by invoking emergency powers was unlawful
•  The Supreme Court also appeared somewhat skeptical of the administration’s arguments defending the tariffs
•  Although it normally takes more than six months for a Supreme Court ruling to be finalized, given the significance of the case, a decision could be reached within a few weeks

2025.11.01

U.S.–China Summit Outcome: Fact Sheet Announcement

•  The United States announced a 10-percentage-point reduction in the fentanyl-related tariff, a temporary suspension of reciprocal tariff increases with China (maintaining only a 10% reciprocal tariff rate), and a halt to Section 301-related measures on China’s shipbuilding and maritime sectors
•  These measures will take effect on Nov 10

  ※ Tariff rate on Chinese imports: 30% (through Nov 9) → 20% (from Nov 10 onward)

2025.10.30

Result of the U.S.-China Summit: Extension of the Reciprocal Tariff Truce and Agreement to Suspend Maritime and Shipbuilding Fee Measures

•  Both countries agreed to postpone the imposition of port-related fees for one year
•  The reciprocal tariff of 24% on goods from China (including Hong Kong and Macao) will be suspended for one year (announced by China’s Ministry of Commerce)

  ※ Upon implementation of the mutually agreed tariffs, the effective tariff rate on Chinese imports will be 20%, consisting of a 10% fentanyl-related tariff and a 10% reciprocal tariff

2025.10.30

Result of the U.S.-China Summit: Agreement on a 10%p Reduction in Fentanyl Tariffs and Temporary Suspension of Export Controls

•  The United States agreed to reduce the fentanyl-related tariff on Chinese goods from 20% to 10%
•  China agreed to resume purchases of U.S. soybeans and to suspend export controls on rare earth materials for one year

2025.10.29

Korea, U.S. reached an agreement on the detailed terms of the tariff negotiations

•  Automobiles / Auto Parts: Tariff reduced from 25% to 15%

  ※ To be applied retroactively from the first day of the month in which the related bill is submitted to the National Assembly of the Republic of Korea (tariff reduction could take effect as early as Nov)

•  Semiconductors: Tariffs to be imposed at a level no less favorable than that applied to Taiwan
•  Pharmaceuticals (excluding generics) / Timber: To be granted Most-Favored-Nation (MFN) treatment
•  Aircraft Parts / Generic Pharmaceuticals / Natural Resources not Produced in the U.S.: To be exempt from tariffs (duty-free)

2025.10.17

Announcement of Administrative Order on Imported Medium and Heavy-duty Vehicles (MHDVs)/Vehicle Parts (MHDVPs), and Buses

•  A 25% tariff will be imposed on MHDVs and MHDVPs, and a 10% tariff on buses (vehicles classified under HTSUS 8702).
  (Exempted are vehicles manufactured 25 years or older as of the date of import)
•  For MHDVs subject to the USMCA, a 25% tariff will apply only to non-U.S. value, while parts will be exempt from tariffs until separate procedures are established.
•  Effective from Nov 1

2025.10.10

USTR Announces 100% Tariffs on Chinese-Made STS (Ship-to-Shore) Cranes and Intermodal Chassis

•  A 100% additional tariff will be imposed on products that are manufactured or assembled in China, or that contain Chinese-made components
•  Contracts signed before April 17, 2025, and products imported before April 18, 2027, will be exempt from the additional tariff
•  Effective Nov 9

2025.10.06

Announcement of a 25% Tariff on Imported Medium- and Heavy-Duty Trucks

•  The tariff applies to medium-duty trucks with a gross vehicle weight rating (GVWR) of 14,001–26,000 pounds (approximately 6,350–11,793 kg) and heavy-duty trucks with a GVWR of 26,001 pounds (approximately 11,794 kg) or more
•  It is expected that countries such as South Korea, Japan, and the European Union — which previously reduced automobile tariffs from 25% to 15% under trade agreements — will likely be subject to the 25% tariff rate as well
•  Effective Nov 1 (postponed from the original effective date of Oct 1)

2025.09.29

Administrative Order on Timber, Lumber, and their derivative products

•  A 10% tariff will be imposed on imported softwood timber and lumber, and a 25% tariff on indoor furniture (Upholstered wooden products with fabric such as sofas) and kitchen furniture (such as kitchen cabinets and vanities)
•  Based on the outcome of recent trade negotiations, tariffs on products from the United Kingdom will be capped at 10%, and those from Japan/Europe will be capped at 15%
•  Starting Jan 1, 2026, for countries without a trade agreement with the United States, tariffs on indoor furniture will increase from 25% to 30%, and on kitchen furniture from 25% to 50%
•  Effective Oct 14

2025.09.25

Announcement of tariff imposition: Pharmaceuticals 100%, Heavy trucks 25%, Kitchen/Bathroom products 50%, Furniture 30%

•  Pharmaceuticals apply to products of companies without production facilities in the United States (tariffs excluded if facilities are currently under construction)
•  To take effect on Oct 1

2025.09.10

Mexico Announces Tariffs of up to 50% on Non-FTA Countries (Subject to Congressional Approval)

•  Aimed at strengthening domestic production and countering the effects of U.S. tariffs
•  Expected to impact non-FTA countries such as China, South Korea, India, Indonesia, Thailand, and Turkey
•  Targeted products include automobiles/parts, textiles, footwear, plastics, electronics, toys, and others

2025.09.04

Administrative Order on the U.S.-Japan Trade Agreement

•  A 15% tariff will be applied to automobiles and auto parts
•  For Japan’s reciprocal tariffs, the previous rule of “existing tariff + 15% (effective August 7)” will be revised so that the combined existing tariff and reciprocal tariff does not exceed 15%. This grants Japan the same treatment as the European Union (EU) 
•  The order is scheduled to take effect within 7 days after its publication in the Federal Register

2025.08.31

U.S. Federal Court of Appeals Rules Tariffs Based on IEEPA Unconstitutional

•  The ruling will take effect starting Oct 14
•  It applies only to reciprocal tariffs imposed under IEEPA, while item-specific tariffs based on the Trade Expansion Act remain in place
•  The final decision is expected to be made by the U.S. Supreme Court

2025.08.21

U.S.–European Union (EU) Joint Statement on Trade Agreement

•  When imposing item-specific tariffs on pharmaceuticals, semiconductors, and lumber, tariffs on EU products will be capped at no more than 15%
•  A 15% tariff will apply to EU automobiles and auto parts (to take effect once the EU prepares legislation implementing the trade agreement)
•  Plans to review a tariff-rate quota (TRQ) system for steel, aluminum, and derivative products

2025.08.15

U.S. Department of Commerce Adds 407 Items to Steel/Aluminum Derivative Products

•  Major affected items include transformers, home appliances, construction machinery, auto parts, and cosmetics
•  Refrigerators and freezers, which had already been added to steel derivatives, are now also included under aluminum derivatives, 
  A wide range of automotive parts, such as engines and other components (previously not covered under automotive tariffs), have been newly added to steel derivative products
•  A 50% tariff will be applied based on the steel/aluminum content value; all other items will be subject to reciprocal tariffs (15% for Korea)
•  For aluminum derivative products, if the smelting/casting country of origin cannot be proven to be outside of Russia, a 200% tariff may be imposed
•  Effective Aug 18 (no exceptions for items shipped prior to Aug 18)

2025.08.12

90-day Extension of U.S.–China Tariff Truce

• The United States will maintain its tariff rate on Chinese goods at 30% (including a 20% tariff on fentanyl), while China will keep its tariff rate on U.S. goods at 10%
• Effective through Nov 9

2025.08.06

Executive order announced imposing an additional 25% tariff due to India's import of Russian oil

• Effective from Aug 27
• A new reciprocal tariff rate of 25% will be applied starting Aug 7, with a total tariff rate of 50% (25% + 25%) effective from Aug 27

2025.07.31

Announcement of New Reciprocal Tariffs by Country

• New reciprocal tariff rates announced for 69 countries, including the European Union
  : Korea 15%, Japan 15%, Philippines 19%, Thailand 19%, Taiwan 20%, etc.
• Countries not specified in the executive order will be subject to a default 10% tariff
• A 40% tariff will apply to transshipped goods intended to circumvent tariffs (countries and companies involved in circumvention will be announced every six months)
• The new reciprocal tariffs will take effect and be applied on Aug 7 for the above-mentioned countries such as Korea and Japan.

※ New reciprocal tariff rates will apply to goods shipped after 12:01 AM on Aug 7 or arriving in and clearing U.S. customs after October 5

2025.07.31

Mexico: 90-Day Tariff Deferral

• Tariffs remain in place as follows: 25% fentanyl tariffs, 25% on automobiles and auto parts, and 50% on steel, aluminum, and copper
• Products that meet the conditions of the USMCA agreement will be exempt from tariffs

Canada: Increase in Fentanyl Tariff from 25% to 35%

• Products that meet the conditions of the USMCA agreement will remain exempt from tariffs
• Effective from Aug 1

2025.07.30

Executive Order Announced to End Global 'De Minimis' Duty-Free Benefits

• Based on the OBBBA Act passed on July 4th, the original implementation date was set for July 2027, but the timeline has now been expedited
• Importers can choose between ad valorem or specific duties; however, after 6 months from the effective date, only ad valorem duties will apply
• Ad Valorem Duty: Based on the new reciprocal tariff rates of the country of origin

Specific Duty:

For reciprocal tariff rates below 16%: $80 per item

For rates between 16% and 25%: $160 per item

For rates above 25%: $200 per item

• This order takes effect on Aug 29

2025.07.30

Announcement of Executive Order Imposing 50% Tariff on Copper Semi-finished Products and Derivatives

• Applicable only to the copper content within the products; non-copper components will remain subject to existing reciprocal or other applicable tariff rates
• Effective from Aug 1

2025.07.30

South Korea Concludes Trade Negotiations

• South Korea's reciprocal tariff rate will be reduced from 25% (as of July 7) to 15%

Announcement of Executive Order Imposing Additional 40% Reciprocal Tariff on Brazil

• A 40% tariff will be added to the existing universal tariff of 10%, resulting in a total tariff rate of 50%

• Aircraft, energy products, wood pulp, and orange juice are excluded from the additional tariffs

• Effective from Aug 6

2025.07.27

European Union (EU), Trade Deal Agreement

• Reciprocal tariff on EU products reduced from 30% (as of Jul 12) to 15%
• Mutual agreement on zero tariffs for certain strategic items (such as aircraft and semiconductor equipment)
• A 15% tariff will be applied to automobiles, auto parts, pharmaceuticals, and semiconductors originating from the EU

2025.07.22

Philippines, trade deal agreement

• Reciprocal tariff on Philippine goods reduced from 20% (as of July 9) to 19%
• No tariffs applied to U.S. products in the Philippines

Japan, trade deal agreement

• Reciprocal tariff on Japanese goods reduced from 25% (as of July 7) to 15%
• A 15% tariff rate is applied to Japanese automobiles and auto parts

2025.07.15

Indonesia, a trade deal agreement

• 32% reciprocal tariff on Indonesian goods (As of July 7) → 19%
• Like Vietnam, no tariffs on U.S. goods in Indonesia

2025.07.12

Announcement of New 30% Reciprocal Tariff Rate on the European Union (EU) and Mexico

- New reciprocal tariff rate to be applied starting Aug 1

2025.07.10

Announcement of New 35% Reciprocal Tariff Rate on Canada

- New reciprocal tariff rate to be applied starting Aug 1

• The new reciprocal tariff rates will take effect on Aug 1
• Affected countries: Philippines 20%, Brunei/Moldova 25%, Algeria/Iraq/Libya/Sri Lanka 30%, Brazil 50%

• Effective date changed from Jul 9, 12:00 a.m. (EST) to Aug 1, 12:00 a.m. (EST)

• New reciprocal tariff rates to be applied starting Aug 1
• Affected countries: Japan 25%, South Korea 25%, South Africa 30%, Kazakhstan 25%, Laos 40%, Malaysia 25%, Myanmar 40%, Tunisia 25%, Bosnia and Herzegovina 30%, Indonesia 32%, Bangladesh 35%, Serbia 35%, Cambodia 36%, Thailand 36%

2025.07.04

Official elimination of De Minimis duty-free treatment applied to imports from all countries

• The exemption for the small parcels valued under $800 will end permanently on Jul 1, 2027 (expansion from China to worldwide)
• Included in the "One Big Beautiful Bill Act (OBBBA)" signed by President Trump on Jul 4

• Reciprocal tariffs lowered from 46% to 20% on Vietnamese goods
  But, 40% tariffs imposed on T/S goods (transshipment through Vietnam and export to the U.S.)
• Vietnam charged no tariffs on US products

• Maintain 10% reciprocal tariff
• 10% tariffs on finished vehicles (100,000 units annually)
• 10% tariffs on auto parts (manufactured in the U.K. to be used in U.K.-made vehicles)
• Will set the quota allocated to be exempt from the tariff on steel

• Imposed 50% according to the steel content
• Effective from Jun 23

• Effective from Jun 4

• Tariffs on China: Cut reciprocal tariffs from 125% to 10% but 20% tariffs still remain followed by concerns over sending fentanyl into the U.S.
• Tariffs on the U.S.: Reciprocal tariffs lowered from 125% to 10%

• Ad Valorem tax: Reduced to 54% of product price
• Specific tax: Maintain at $100 by item, effective from May 2

• Only apply 10% universal tariff (except for China)
• Announced to increase reciprocal tariffs additionally from 84% to 125% on China, effective from Apr 10

• Ad Valorem tax: 120% of product price, effective from May 2
• Specific tax: $100 by item, effective from May 2 → $200 by item, effective from Jun 1

• Ad Valorem tax: 90% of product price, effective from May 2
• Specific tax: $75 by item, effective from May 2 → $150 by item, effective from Jun 1

• Vietnam 46%, Myanmar 45%, Thailand 37%, China 34%, Taiwan 32%, Indonesia 32%, Switzerland 32%, South Africa 31%, India 27%, South Korea 26%, Malaysia 24%, Japan 24%, EU 20%, Israel 17%, etc.
• Canada/Mexico are exempted from universal/reciprocal tariffs
• Not applied cumulatively with item-specific tariffs

• Select between Ad Valorem tax or Specific tax conditions
• Ad Valorem tax: Impose 30% of product price, effective from May 2
• Specific tax: $25 by item, effective from May 2 → $50 by item, effective from Jun 1