On April 2, 2025, President Donald J. Trump formally declared a national emergency on trade while also implementing “baseline tariffs” of 10% on goods from all countries and “reciprocal” import fees for items from countries deemed the “worst offenders” on trade practices. The latter category will be implemented on a country-by-country basis for about 60 countries. That includes China and the European Union, which will be levied new duties of 34% and 20%, respectively.
The 10% baseline tariff will take effect April 5, 2025, at 12:01 a.m. EDT. The new reciprocal tariff rates will be charged as of 12:01 a.m. on April 9, 2025.
President Trump has argued steep tariffs are needed to combat the nation's growing trade deficit and boost U.S. domestic manufacturing. He deemed April 2, 2025 as “Liberation Day.”
Background
On March 4, 2025, President Trump issued an Executive Order (EO) under the International Emergency Economic Powers Act (IEEPA) and the National Emergencies Act (NEA) which imposed 25% tariffs on Canada (10% on energy) and Mexico, tying them to border security and the flow of fentanyl. On the same day, an additional 10% tariff was placed on China, on top of existing Section 301 China tariffs.
On March 6, 2025, President Trump reversed course and and postponed the 25% tariffs for goods covered by the U.S.-Mexico-Canada Agreement (USMCA). Now that “Liberation Day” has passed, this means USMCA compliant goods will have zero tariffs, goods that do not satisfy the USMCA rules of origin will see a 25% tariff, while energy and potash that are non-compliant with USMCA will see a 10% tariff. In the event the existing IEEPA orders are terminated, USMCA compliant goods would continue to receive preferential treatment, while non-USMCA compliant goods would be subject to a 12% reciprocal tariff.
The IEEPA EO would allow President Trump to increase the tariff if trading partners retaliate or decrease the tariffs if trading partners take significant steps to remedy non-reciprocal trade elements and align with the United States on economic and national security matters.
A fact sheet on the USMCA modifications can be found here. Some goods will be exempt from the reciprocal tariffs including:
(1) articles subject to 50 USC 1702(b) (IEEPA general exclusions for donations, goods in personal effects/baggage, information transfers, postal and other transactions that do not involve the transfer of anything of value);
(2) steel/aluminum articles and autos/auto parts already subject to Section 232 tariffs;
(3) copper, pharmaceuticals, semiconductors, and lumber articles;
(4) all articles that may become subject to future Section 232 tariffs;
(5) bullion; and
(6) energy and other certain minerals that are not available in the United States.
Of significance to the printing industry is that steel and aluminum imports already subject to a 25% tariff will be excluded from the new tariffs. The 25% tariff issued last month covers hundreds of finished products made with imported steel and aluminum. The Alliance continues to advocate for the elimination of Section 232 tariffs, in particular, tariffs applicable to aluminum lithographic printing plates.
Republican Senator Susan Collins (Maine), a longtime ally of the printing industry, said in a speech to the Senate before the vote on a resolution related to Canadian tariffs, that Trump's proposed Canadian tariffs would hurt several industries in her home state of Maine, including its paper makers, which obtain pulp via a pipeline from Canada.
Additionally, President Trump has instructed the Department of Commerce to investigate whether timber, lumber and their derivatives (i.e. paper and paper-based products) pose a threat to national security and economic stability. On April 1, 2025, PRINTING United Alliance, in conjunction with the News/Media Alliance and America’s Newspapers, submitted comments to the Secretary of Commerce regarding the potential for tariffs on paper and paper-based goods. Those comments may be found here.
U.S. Trade Partners Promise to Respond
Canadian Prime Minister Mark Carney said the new tariffs will “fundamentally change the international trading system” and that “we’re going to fight these tariffs with counter measures.” Mexican President Claudia Sheinbaum said she will unveil a broad economic plan in response to Trump’s tariffs, which will include steps to protect the country’s automotive industry.
Additionally, China, Japan, and South Korea reported that they will respond to the new duties in lockstep. All three countries will be levied duties higher than 20%.
The International Chamber of Commerce reports that there’s “a clear systemic risk to the global trading system” if trade tensions reach a fever pitch. According to most economists, retaliatory tariffs from U.S. trading partners could weaken the economy, send the stock market plummeting, and increase prices for American consumers.
Alliance Tariff Survey
We encourage you to participate in the Alliance survey entitled, “The Effect of Tariffs on the Printing Industry.” Our Economics & Forecasting team have released preliminary results which may be read here. Final results will be published in the Alliance’s State of the Industry Series.
This is a developing story that the Alliance’s Government Affairs team will continue to monitor, providing updates as necessary.
In this article, Stephanie Buka, Government Affairs Manager, PRINTING United Alliance, discusses the new tariffs issued by President Trump on April 2, 2025. More information can be found at Business Excellence-Legislation or reach out to Steph should you have additional questions specific to how these issues may affect your business: sbuka@printing.org.
To become a member of the Alliance and learn more about how our subject matter experts can assist your company with services and resources such as those mentioned in this article, please contact the Alliance membership team: 888-385-3588 / membership@printing.org.