Current tariff overview:
Country/Coverage  Tariff  Date active  Broad exemptions
Mexico 25% 4 March  Imports under USMCA
Canada 25% 4 March  Imports under USMCA
China 30% 14 May Product exemptions
China, De minimis shipments (under USD 800) 54% of their value or USD 100 per item 2 May  
Reciprocal - Universal 10% 5 April Product exemptions
Reciprocal - EU 20% July Product exemptions
Reciprocal - Other countries 11%-50% July Product exemptions
Steel & aluminium 50% 4 June Specific exemptions
Automotive 25% 3 April TBD
Pharmaceuticals TBD TBD  
Semiconductors TBD TBD  
Aircraft and parts TBD TBD  
Trade tensions surface alongside security at G7 summit

US tariff policy and trade tensions featured heavily at this week’s G7 summit in Canada. President Trump met bilaterally with several leaders, including Japan’s Prime Minister Ishiba, to discuss the steep tariffs affecting key industries like autos and metals.

  • Japan is pushing the US to end the 25% tariff on autos and a 24% “reciprocal” tariff – currently paused until 9 July. 
  • The UK–US auto tariff deal, signed in May, has now been partly implemented – lowering tariffs to 10% on the first 100,000 vehicles. Aerospace tariffs were removed, but a 25% steel tariff remains unresolved, with pressure mounting ahead of the 9 July deadline. '
  • The EU rejected claims it had agreed to a 10% US baseline tariff on all exports, calling such reports “speculative.” Negotiations continue with no deal yet in place. 
  • President Trump suggested multiple trade deals may soon be announced but offered no firm commitments beyond the UK agreement. 

Allies remain concerned about the unpredictable nature of US trade actions, including the threat of tariffs increasing again after 9 July if no bilateral deals are reached. For companies exporting to the US, this unstable landscape reinforces the importance of understanding your current tariff rate, how your products are classified, and how industry peers are responding to remain competitive.

New guidance published: US auto manufacturers can now apply for tariff relief

On 13 June, the US Department of Commerce published official procedures for domestic auto manufacturers to apply for tariff compensation related to Section 232 duties on automobile parts. This follows Presidential Proclamation 10925, which introduced an “import adjustment offset” designed to reduce the burden of tariffs on manufacturers assembling vehicles in the US.

In April, President Trump imposed a 25% tariff on certain auto parts under Section 232, citing national security concerns. To support domestic production, Proclamation 10925 established a mechanism that allowed manufacturers to offset these costs – based on the share of a vehicle’s value produced in the US.

Key points from the new guidance: 

  • Eligible manufacturers are those that assemble vehicles in the US between 3 April 2025 and 30 April 2027. 
  • The offset amount is linked to the domestic content of each vehicle. In year one, up to 15% of a vehicle’s value may be offset, dropping to 10% in year two. 
  • Manufacturers must submit documentation verifying the final assembly and content share to qualify. 
  • Offsets can be carried forward until the approved amount is used up, even beyond April 2027. 

This incentive is designed to encourage domestic production and alleviate cost pressure as manufacturers adapt to new supply chain requirements. Applications can be submitted electronically starting 13 June 2025. More information about the program and how to apply is available here.

IEEPA Tariffs Remain in Effect During Appeal

On 10 June, the US Court of Appeals for the Federal Circuit ruled that President Trump’s broad “Liberation Day” tariffs – imposed under the International Emergency Economic Powers Act (IEEPA) – will remain in force while legal challenges proceed.

The court cited the case’s “exceptional importance” and set 31 July for oral arguments before its full 11-judge panel. While lower courts have found the tariffs unlawful, the appeals court has not yet ruled on their legality. The outcome could shape future presidential tariff powers and refund eligibility for importers.

New Section 232 Guidance on Unknown Aluminium Smelt and Cast Countries

Starting 28 June 2025, US Customs will apply a 200% duty on certain derivative aluminium imports under Section 232 if importers report “unknown” for the country of smelt or cast. This rule applies specifically to derivative aluminium products – not raw aluminium – and differs from the existing 50% tariff. The update is meant to enforce stricter traceability requirements and discourage incomplete reporting.

Key requirements: 

  • Applies to derivative aluminium subject to Section 232. 
  • Importers must report ISO country codes for:
    - Primary and secondary country of smelt (may not both be “N”) 
    - Country of most recent cast 
  • If “UN” (unknown) is reported for any, HTS 9903.85.67 or 9903.85.68 must be used, triggering the 200% duty – equivalent to Russian-origin aluminium.

More details are available on CBP’s trade website here.

Tariff stacking complicates US import costs

Many importers are facing unexpectedly high duty rates due to “tariff stacking” – the cumulative effect of multiple overlapping tariffs imposed under different authorities, such as Section 232 (national security), Section 301 (China), and IEEPA (national emergencies).

Even when new tariff rates are announced – such as the recent 10% “reciprocal” base tariff – earlier tariffs often remain in place. This has led to confusion and significant costs, particularly for importers sourcing from countries such as China. Key implications: 

  • Tariff layers: A product may be subject to multiple tariffs (e.g. 25% under Section 301 + 20% under IEEPA + 10% under Section 232), pushing total duties well above the headline rates. 
  • Unpredictability: Customs and Border Protection (CBP) guidance, released on 4 June, attempts to clarify which tariffs take precedence – but in practice, filers must calculate based on the entire stack, not just the most recent rate.
  • Limited relief options: Exemptions and exclusion processes remain narrow, with few new waivers anticipated.

Importers are encouraged to review their tariff exposure, check CBP priority rules, and seek professional support to avoid overpayment – or unexpected penalties. 

If you need assistance connecting with a US customs broker or navigating import procedures, please don’t hesitate to reach out. For broader export support, Business Sweden’s Trade & Invest Facilitation team can assist with customs rules, trade agreements, logistics, and more – please reach out to Elin Hagberg or Helena Kohlström Zegel.

What to look for next week
  • IEEPA litigation continues – The US Court of Appeals will allow Trump’s “Liberation Day” tariffs to remain in effect during the appeal. The full court will hear arguments on 31 July. 
  • Trade developments expected – Watch for announcements or signals on future tariff policy as the 90-day pause on new trade deals and tariffs nears its end. 
  • Investigation progress into Section 232 tariffs – public comment period closed on 4 June, with tariff decisions expected by 19 July; affected sectors include pharmaceuticals, semiconductors, engines, vehicles, and industrial components.
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 US operations, please contact Johan Karlberg or Peter Ekdahl.

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