US reciprocal tariffs — “Liberation Day”

Immediate Changes & Impact 

On Wednesday 2 April, on the day labelled "Liberation Day" by President Trump, wide ranging “reciprocal” tariff measures were announced by his Administration. President Trump invoked his authority under the International Emergency Economic Powers Act of 1977 (IEEPA) to address the national emergency posed by the large and persistent trade deficit.

These measures, imposed on all global trading nations, apply a blanket additional tariff rate on all products imported into the US.

As expected, the measures were applied on a country-by-country basis with the following key markets impacted by the following additional tariffs:

• European Union - 20%
• United Kingdom - 10%
• China - 34%
• Japan - 24%
• Switzerland - 31%
• Brazil - 10%
• Australia - 10%
• India - 26%
• South Korea - 25%

In addition to the above, a further 60 or so countries will have reciprocal tariffs applied at half the rate they charge the US, according to the Trump administration. These measures are due to be implemented on 9 April.

Further to these specific tariffs, all other countries not listed will be subject to a baseline rate of 10% which will be imposed from 5 April and will be in addition to the standard rate of duty (“MFN rate”). 

The Executive Order imposing the “reciprocal” tariff rates have specifically excluded certain product categories which will not be subject to these new measures. These products include:

• Steel and aluminum articles already subject to additional tariff measures 
• Auto and auto parts already subject to tariff measures implemented on 3 April
• Copper
• Pharmaceuticals
• Semiconductors
• Lumber articles
• Energy and certain other minerals that are not available in the United States 

With respect to goods which are imported into the US from Mexico and Canada, those goods which qualify under the USMCA (US-Mexico-Canada Free Trade Agreement) rules will not be subject to additional tariffs. Goods which do not meet the rules under the USMCA will continue to be subject to the 25% tariffs imposed on 4 March.

In summary, the tariffs applied by President Trump makes this a trade crisis on a global scale with impact for companies across all sectors and these tariffs will remain in effect until such a time as President Trump determines that the threat posed by the trade deficit and underlying nonreciprocal treatment is satisfied, resolved, or mitigated.

Other Tariff Measures

As announced on Wednesday 26 March, 25% tariffs on imports of foreign-made cars are due to come into effect on 3 April. The tariffs will impact cars from all countries with a value based exception for the US value of cars covered by the United States-Mexico-Canada Agreement (USMCA).

Additionally, on Monday 25 March, President Trump also imposed the possibility of a 25% additional tariff on countries purchasing oil or gas from Venezuela with an implementation date of 2 April. As of yet, no tariffs under this measure have been imposed.

Further to previous Executive Orders in respect of tariffs on imports of Chinese goods, President Trump has signed an Executive Order removing the de minimis treatment for goods of Chinese and Hong Kong origin starting 2 May. This order imposes duties on goods valued at or under $800 which would otherwise have qualified for an import duty exemption.

USTR Foreign Trade Barriers Report 

On 31 March , the United States Trade Representative published their 2025 National Trade Estimate Report on Foreign Trade Barriers. A wide ranging report which highlights significant foreign barriers to US exports, US foreign direct investment and US electronic commerce.

Ireland is specifically noted within the report but references are limited to commentary regarding alcohol labelling and reimbursements related to pharmaceutical products.

European Retaliatory Measures

On 12 March, the EU Commission announced countermeasures in response to the US tariffs on steel and aluminium products, which they deemed "unjustified". Following a period of consultation, the EU has postponed the implementation of these measures until 15 April.

The tariffs which will be imposed range from 10% to 75% with the majority of products falling within the 25% category, and include such items as:

• Certain foods or foodstuffs (certain vegetables, fruit, rice etc.)
• Various types of fruit juices
• Whiskey, including bourbon
• Various tobacco products
• Cosmetic preparations
• Men's and women's clothing (T-shirts, jeans and other garments)
• Footwear
• Various steel and aluminium products
• Motorcycles

Additionally, the EU is set to announce further countermeasures on a wider range of goods. These tariffs are currently under negotiation and remain undisclosed with potential items including foodstuffs, alcohol, consumer goods, plastics, textiles, wood and timber, lighting, motorcycles, white goods and household appliances, and optical fibres.

EU Reaction

On Tuesday 1 April comments by European Commission President Ursula von der Leyen indicated that the EU is prepared to retaliate against the US if necessary in response to President Trump's tariff hikes. The US has already increased tariffs on steel, aluminium, and cars. Ursula von der Leyen, President of the European Commission, reiterated that Europe did not start this confrontation but is ready to respond with a strong plan if needed.

President von der Leyen emphasised the significance of the US-EU trading relationship, noting that their trade volume is $1.5 trillion and that 1 million American jobs rely on this trade. She reiterated that Europe is "open to negotiations," stating, 

Key actions businesses can take today

In anticipation of tariffs which the US has indicated it will place on trading partners, companies have placed significant focus on the analysis of their own data and scenario planning for the impact of potential tariffs. With this evening's announcement, businesses should now turn their focus to tariff mitigation strategies and options, including: customs origin, valuation and tariff classification. In addition, duty relief programs should also be considered.

Over the next number of days, we expect to see commentary by US trading partners on the measures which have been announced, with the EU expected to make a statement on the morning of Thursday, 4 April. It is the expectation that the EU will push ahead with their retaliatory measures and other countries may look to take similar measures in response to the US tariffs which have been announced.

Today’s executive orders also contain modification authority, allowing 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 arrangements and align with the United States on economic and national security matters.