Important Update

White House Tariff Announcement  

Dear IEDC Members,

IEDC would like to provide you with a brief update on the latest developments regarding U.S. trade policy and tariffs, as announced yesterday by President Trump.

What You Need to Know

On Wednesday, President Trump announced a 90-day pause on planned tariff increases for dozens of countries. He cited the decision as a response to the fact that over 75 countries have not retaliated and have expressed willingness to engage in discussions with the U.S. on trade issues.

• China is excluded from this pause. Instead, the U.S. has raised tariffs on Chinese goods to 125%, effective immediately. This move comes in response to China’s own retaliatory actions, which included tariff increases of up to 84%.
  
  
• A 10% across-the-board tariff remains in place globally and is unaffected by the pause.
  
  
• For Canada and Mexico:
  • Goods covered by the U.S.-Mexico-Canada Agreement (USMCA) remain tariff-free.
  • Products not covered under USMCA will face a 25% tariff.
  • Canadian energy and fertilizer products are subject to a 10% tariff.

• Tariffs on specific sectors — including autos, steel, and aluminum — will remain in effect, according to Treasury Secretary Scott Bessent. Additional planned tariffs on items such as lumber and pharmaceuticals are also still on track. 

• While the full list of countries included in the 90-day pause has not been released by the White House, the European Union has voted to impose new retaliatory tariffs, which are expected to take effect next week.

This announcement marks a significant development in ongoing U.S. trade negotiations, but does not represent a full rollback of recent tariff measures. The situation remains fluid, and IEDC will continue to monitor updates and assess potential impacts on the economic development community. We will share additional information as it becomes available.

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

• International Trade Commission (USITC) – Provides analysis and data on tariffs. 
• World Trade Organization (WTO) – Global trade rules and tariff-related reports. 
• Canadian Chamber of Commerce – Tools and insights on Canadian business conditions and trends
• Chamber of Commerce – International Trade – Business-focused impact analysis on tariffs and trade. 
• National Association of Manufacturers (NAM) – Reports on how tariffs affect U.S. industries. 

If you have questions or are seeing local impacts from these changes, please don’t hesitate to reach out.

Sincerely,