Tariff Subheading Guidance for ‘Reciprocal Tariffs' Published

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Apr. 4, 2025
By: Chaney A. Finn

Detail of the products excluded from President Trump’s April 2 Executive Order (EO) imposing “reciprocal tariffs” on U.S. trading partners has been provided. This detail also provides specific Harmonized Tariff Schedule (HTS) subheadings by country and product to be declared on entry and is referenced to as annex III, provided in the President’s EO.

Key specified HTS subheadings include:

    • 9903.01.25 provides for goods subject to the 10% tariff imposed on most goods from most countries effective April 5.
    • 9903.01.43 through 9903.01.76 provide for the country-specific tariffs on goods effective April 9. Countries imposed with similar tariff rates appear to be grouped         into the same HTS subheading:
            o 9903.01.61 provides for 32% tariff on goods from Taiwan, Indonesia, Angola, and Fiji.
            o 9903.01.63 provides for 34% tariff on goods from China, including Hong Kong and Macau.
    • Some exclusions are also grouped based on origin, product characteristics, and other. Notable exclusions include the following HTS subheadings:
            o 9903.01.26 and 9903.01.27 provide for goods from Canada and Mexico that are exempt from IEEPA tariffs (USMCA-qualified goods).
            o 9903.01.28 provides for goods in transit when the tariffs take effect April 5, and thus, exempt from the additional tariff.
            o 9903.01.32 provides for goods listed in Annex II that are exempt from the executive order.
            o 9903.01.33 provides for steel and aluminum products, steel and aluminum derivatives, and autos and auto parts already subject to Section 232 tariffs.
            o 9903.01.34 provides for the exemption of goods containing greater than 20% of U.S. content.

The 10% tariff under subheading 9903.01.25 will not apply to goods imported from countries designated with country-specific rates, once the country-specific rates are effective at 12:01 a.m. eastern daylight time on April 9, 2025.

A 12% fallback tariff rate for goods imported from Canada and Mexico are provided in subheading 9903.01.35 and 9903.01.39, should the fentanyl-related IEEPA duties be revoked, removed, or otherwise not be in effect. However, USMCA-qualified imports from Canada and Mexico would be exempt, as provided for in subheadings 9903.01.36 and 9903.01.40. Additionally, subheadings 9903.01.37 and 9903.01.41 provide for exclusions for Canadian and Mexican energy and potash imports.

Notably, duty drawback with respect to the additional duties imposed pursuant to the Executive Order, is available, according to corresponding guidance published by U.S. Customs & Border Protection in CSMS # 64649265. Drawback was not mentioned in the EO.

As way of background, additional details to the EO announced on April 2 has been provided in the form of annexes to the order. Annex I consists of a revised country list containing minor corrections from the initial list. Annex II lists guidance of the HTS lines exempt from the tariffs, consisting of 1,039 HTS subheading lines across 25 Chapters. These exemptions are in addition to the initial exclusions specified in the EO which include, (1) communications, donations, informational materials, and other related articles subject to 50 USC 1702(b); (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. See our previous reporting for additional insight on annex I & II.

Tariff rates and exclusions are subject to change, "should a trading partner retaliate, decrease tariffs, or ‘take significant steps to remedy non-reciprocal trade arrangements and align with the United States on economic and national security matters,’” as indicated by the Administration.

Should you have any questions regarding tariffs, or have any other trade-related questions, do not hesitate to contact any attorney at Barnes Richardson and Colburn.