The good news? Those reciprocal tariffs everyone was dreading are now on pause until July. Businesses are catching their breath and adopting that familiar wait-and-see approach while negotiations take the spotlight under these universal tariffs we're all trying to navigate.

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 145% 9 April None announced
China, De minimis shipments (under USD800) 30% of their value of USD 25 per item (USD 50 per item after 1 June) 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 25% 12 March Specific exemptions
Automotive 25% 3 April TBD
Pharmaceuticals TBD TBD  
Semiconductors TBD TBD  
Negotiations: Japan, Korea, and India

The US is advancing bilateral trade talks with Japan, South Korea, and India, aiming to reach agreements before a July deadline. South Korea is pursuing a comprehensive package covering tariffs, shipbuilding, and energy, while India has finalised “terms of reference” for negotiations following Vice President JD Vance’s visit to New Delhi.

The US has introduced a framework addressing tariffs, non-tariff barriers, digital trade, and economic security — setting the stage for more formalised outcomes later this year.

Meanwhile, Japan has raised concerns about the wider impact of US tariff strategies on Asian trade, underlining the need for stability. Unlike US-Canada and US-Mexico negotiations, the Asian partners are working to separate security issues from trade talks.

Although there is shared interest in protecting regional supply chains and investment flows, this is still only an early step, and the Trump Administration’s ultimate goals are still unclear. 

Trump and China: mixed signals

President Trump has suggested that some tariffs on China could be lowered if substantial concessions are made, particularly on market access for US companies. However, no formal negotiations have been confirmed, and the 145% tariffs on Chinese goods remain in force. Even with the possibility of some adjustments, a significant degree of tariffs on Chinese products is likely to persist, though not necessarily at the current maximum levels.

Chinese officials have criticised US policy and signalled that they are preparing domestic support measures — such as easing monetary policy and aiding affected industries — to cushion the economic impact. These steps could shift global supply chains and investment patterns, which Swedish companies trading between Asia and the US should monitor closely.

E-commerce and de minimis changes
  • Shipments via US postal services: Subject to a 120% duty or a flat USD 100 fee (increasing to USD 200 in June).
  • Shipments via private carriers:, Subject to standard US duties, including any new tariffs.

This change will especially impact Swedish e-commerce companies that ship directly to US consumers via Chinese manufacturing partners. Companies may wish to explore the First Sale Rule, which allows declaring the dutiable value based on the original sale from the manufacturer to the Swedish company — potentially lowering duty costs.

What to watch next week 

The US Department of Commerce has launched a Section 232 investigation into the national security risks of pharmaceutical imports, covering finished drugs, active ingredients, and medical countermeasures. Public comments are open until 7 May 2025 at regulations.gov under ID BIS-2025-0022. 

Swedish pharmaceutical companies that could be affected are strongly encouraged to submit comments, highlighting potential impacts on US jobs, investments, and sales to help shape the administration’s decisions. 

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