Trade Remedies

Reciprocal Tariff

Also known as: Reciprocal Tariffs · Liberation Day Tariffs

Country-specific tariffs imposed by the President in April 2025 under IEEPA, calibrated to U.S. bilateral trade deficits with each trading partner — subsequently narrowed through federal court litigation.

The Reciprocal Tariffs are the program of country-specific duties announced in Executive Order 14257 (April 2, 2025, "Liberation Day"), imposed under IEEPA authority. The administration cited large and persistent U.S. trade deficits with various countries as the "unusual and extraordinary threat" supporting emergency action.

Structure:

  • 10% universal baseline — A 10% tariff applied to imports from nearly all countries, effective April 5, 2025
  • Country-specific reciprocal rates — Additional rates calibrated to half of each country's "trade barriers against U.S. goods," computed roughly as the bilateral goods trade deficit divided by imports. Rates ranged from 11% (Cambodia and many others) up to 50%+ (e.g., 49% for Cambodia, 46% for Vietnam, 34% for China stacked on existing duties)

Coverage was declared under Chapter 99, primarily in the 9903.01.25 and 9903.02 subheading ranges, on top of the underlying Chapter 1–97 rate and any Section 301, Section 232, or AD/CVD duties already in place.

Carve-outs and adjustments:

  • Section 232-covered articles — Steel, aluminum, autos, and auto parts already subject to Section 232 were excluded from the reciprocal stack
  • USMCA-qualifying goods — Exempt
  • Critical minerals, pharmaceuticals, semiconductors, energy — Carved out in subsequent amendments

Following the V.O.S. Selections and Trump v. CASA litigation, federal courts held that the universal reciprocal tariff exceeded IEEPA's authority. The administration has since shifted parts of the program to Section 122 (for 150-day bridge coverage) and pending Section 301 and Section 338 authorities. As of 2026, the reciprocal program remains in active litigation and ongoing administrative restructuring.

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