After Liberation Day, U.S. trade enters a new phase

Current tariff overview:

Liberation Day introduced sweeping tariffs

On 2 April 2025, President Donald Trump declared “Liberation Day,” unveiling a comprehensive tariff strategy aimed at addressing trade imbalances and bolstering domestic manufacturing. The centrepiece: a universal 10% tariff on all trade partners, effective 5 April.

Starting 9 April, this tariff will increase depending on the origin of imports. For instance, the EU’s rate will rise to 20%. A full country-by-country breakdown can be found here.

Canada and Mexico are exempt from the new measures due to existing trade agreements and prior tariff frameworks. China, however, will face an additional 34% duty on top of its existing 20% tariff burden.

Do these tariffs stack? Yes – but not always

The new reciprocal tariffs are additive, meaning they apply in addition to existing duties, fees, and trade restrictions – unless a specific exemption applies. This “stacking” effect can significantly increase the total landed cost of goods, especially for companies already impacted by Section 232 or China-related tariffs.

The reciprocal tariffs primarily layer on top of anti-dumping duties, countervailing duties, and other trade measures. For example, China now faces an added 34% duty under this framework – on top of the existing 20%. However, not all goods are subject to stacking.

When reciprocal tariffs do not apply:

• Steel, aluminium, and autos already covered under Section 232 tariffs
• Humanitarian goods such as food, medicine, and medical devices, exempt under national security provisions
• Goods with 20%+ U.S. content – tariffs only apply to the non-U.S. value · Products listed in Annex II (including semiconductors, pharmaceuticals, energy, copper, and lumber)
• Canada and Mexico: New tariffs do not stack with recent IEEPA tariffs; exemptions under USMCA remain in place for qualified goods.
• End of duty-free de minimis for Chinese imports

Also announced on Liberation Day was the official end of duty-free de minimis treatment for low-value imports from China and Hong Kong, effective 2 May 2025.

Previously, imports valued under USD 800 could enter the U.S. duty-free. Under the new rules:

• Non-postal shipments will now be subject to full duties
• Postal shipments will incur a flat rate of 30% or USD 25 per item (increasing to USD 50 after 1 June)

Carriers must now report all shipments, maintain financial guarantees, and remit duties to U.S. Customs and Border Protection (CBP).

While framed partly as a national security measure, the move marks a strategic shift aimed at tightening enforcement, reducing e-commerce-driven imports, and supporting U.S. manufacturers.

What to watch this week

These sweeping tariffs have sparked global concern and are likely to trigger a wave of retaliatory measures. China has already announced retaliatory tariffs, with several other countries – particularly the EU – expected to follow suit.

Get in touch

Business Sweden has extensive experience in tariff scenario analyses, localisation evaluations, and supplier assessments. If you need support in assessing your supply chain or navigating the impact of these tariffs on your U.S. operations, please contact Johan Karlberg.

If steel & aluminium tariffs are impacting your business, especially with a local manufacturing footprint in the U.S., please share the details. This information helps Business Sweden and Team Sweden advocate for Swedish businesses in the U.S.

SUBSCRIBE TO OUR U.S. TRADE POLICY BLOG

Stay ahead with the latest insights and updates from Business Sweden’s U.S. blog series.
Click here to subscribe now to receive email notifications for new posts.