Important Update on April 2

White House Tariff Announcement  

Dear IEDC Members,

We are writing to update you on yesterday afternoon's new White House tariff announcement. With members across the U.S. and internationally, IEDC is committed to providing timely, factual updates to help you stay informed. Below is a summary of the key details from today’s announcement.

Tariff Update

Yesterday (April 2, 2025), President Donald Trump declared a national emergency, invoking his authority under the International Emergency Economic Powers Act of 1977 (IEEPA), and announced a comprehensive tariff strategy aimed at addressing trade imbalances and protecting U.S. economic and national security.

The initiative introduces a baseline 10% tariff on imports to the United States from all countries, with higher reciprocal tariffs imposed on nations with significant trade deficits with the United States.​ To view the full White House announcement, click here.

Key Components of the United States’ Tariff Strategy:

1. Baseline Tariff: A uniform 10% tariff will be applied to imports from all countries, effective April 5, 2025.
   
   
2. Reciprocal Tariffs: Countries with substantial trade deficits with the U.S. as determined by the Trump Administration will face higher tariffs, effective April 9, 2025. 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.

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3. Exemptions: Certain goods are exempt from these tariffs, including:​
   • Articles under 50 USC 1702(b)
   • Steel, aluminum, automobiles, and auto parts already subject to Section 232 tariffs
   • Copper, pharmaceuticals, semiconductors, and lumber
   • Bullion
   • Energy and specific minerals not available in the U.S.
     
     
4. For Canada and Mexico: The existing fentanyl/migration IEEPA orders remain in effect and are unaffected by this order. This means United States–Mexico–Canada Agreement (USMCA) compliant goods will continue to see a 0% tariff, non-USMCA compliant goods will see a 25% tariff, and non-USMCA compliant energy and potash will see a 10% tariff. In the event the existing fentanyl/migration IEEPA orders are terminated, USMCA compliant goods would continue to receive preferential treatment, while non-USMCA compliant goods would be subject to a 12% reciprocal tariff.
   
   
5. Modification Authority: The Order also includes 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.

Economic Developers and Tariffs

In times of economic uncertainty, economic developers play an important role in helping businesses navigate risks, adapt to policy changes, and identify growth opportunities. Tariffs can reshape supply chains, influence costs, and affect market competitiveness in various ways, and economic developers provide vital support by offering trade policy insights, connecting businesses with alternative suppliers, and advocating for local industries. They also collaborate with policymakers to address challenges and opportunities, strengthening communities through innovation, workforce development, and investment in domestic production. Through export assistance, tariff impact assessments, and strategic planning, economic developers help businesses build resilience and achieve long-term success in a shifting global economy, thus driving economic prosperity for the communities they serve.

Actions IEDC Members Can Take

We will continue to keep you updated as developments unfold. In the meantime, we encourage all members to:

• Stay Informed: Monitor official communications from the U.S. government, as well as responses from international authorities, to stay updated on policy changes and potential retaliatory measures.​
  
  
• Assess Local Impact: Identify industries within your service area that rely on imports or exports. Evaluate potential implications for businesses and supply chains in your region.​
  
  
• Engage with Affected Businesses: Communicate with local businesses to understand their concerns and provide guidance on mitigating the impact of the tariffs.​
  
  
• Explore Alternative Supply Chains: Assist businesses in identifying alternative suppliers or new customers to reduce their reliance on imports or exports subject to tariffs.​
  
  
• Advocate for Support: Work with local and state officials to develop support mechanisms for businesses adversely affected by the tariffs, such as financial assistance or tax relief.​
  
  
• Keep IEDC Informed: Share insights and specific impacts experienced by your communities or regions to help us provide targeted support and resources.

Additional Resources

1. S. International Trade Commission (USITC) – Provides analysis and data on tariffs. 
2. S. Census Bureau – Foreign Trade – Offers trade statistics, tariff classifications, and import/export data. 
3. World Trade Organization (WTO) – Global trade rules and tariff-related reports. 
4. S. Chamber of Commerce – International Trade – Business-focused impact analysis on tariffs and trade. 
5. National Association of Manufacturers (NAM) – Reports on how tariffs affect U.S. industries. 
   
   

IEDC continues to closely monitor these developments. As more information becomes available, we will provide timely updates and resources to help you navigate these changes. Your role is critical in supporting our communities during this period of economic adjustment.

Sincerely,