Apr 14, 2025Most reciprocal tariffs paused for 90 days; uncertainty remains
A 90-day pause on increased reciprocal tariffs for most U.S. trading partners has offered a temporary reprieve amid escalating global trade tensions, though uncertainty remains.
The April pause excludes China, which will now face a 125% tariff rate on exports to the U.S., a response U.S. President Donald Trump attributed to Beijing’s lack of “respect” for global markets.
The pause follows outreach from more than 75 countries, according to the White House. Trump emphasized that affected countries have refrained from retaliatory action and will see a reduced 10% reciprocal tariff during the pause, effective immediately.
The pause does not roll back existing tariffs and excludes sectors such as steel, aluminum, autos, lumber and pharmaceuticals, which remain under previous or planned duties. Tariffs on Canadian and Mexican goods not covered by the United States-Mexico-Canada Agreement (USMCA) remain at 25%, with an additional 10% duty on potash and energy imports from Canada.
White House officials confirmed the new China tariffs will be layered atop existing 20% duties, bringing the total to 145% for affected Chinese goods. The move follows Beijing’s announcement of 50% retaliatory duties on U.S. imports, set to take effect next week.
China’s exclusion has intensified concerns in the agricultural sector, particularly for soybean producers. The American Soybean Association warned that the tariffs could cost U.S. farmers $5.9 billion annually.
“Farm Bureau appreciates President Trump’s decision to pause the reciprocal tariffs on dozens of America’s trading partners for 90 days,” Zippy Duvall, president of the American Farm Bureau Federation, said in a release. “We have been engaging directly with the White House, U.S. Trade Representative and U.S. Department of Agriculture to emphasize the toll tariffs will take on America’s farmers and ranchers, who are already strapped because of high supply costs and shrinking paychecks. Creating more market challenges puts at risk more than 20% of U.S. farm income. We’re encouraged that those concerns are being heard.
“While the pause brings some temporary certainty, questions remain about the long-term competitiveness for farmers in the global marketplace. We encourage the administration to swiftly resolve trade disputes and to pursue strategies that will ensure America’s farmers can continue to stock the pantries of families here at home and abroad.”
The European Union has also paused its retaliatory measures in response but warned that countermeasures remain under consideration if negotiations falter.
With U.S. Trade Representative Jamieson Greer testifying before Congress last week, the National Potato Council urged the administration and Congress to use the tariff crisis as an opportunity to assist the U.S. potato industry.
Greer discussed the administration’s efforts to negotiate reciprocal trade agreements and address trade deficits amid concerns about the affect of tariffs on sectors including agriculture and manufacturing.
Prior to the hearing, NPC sent a letter (.pdf) to Greer and USDA Secretary Brooke Rollins reiterating its support for “President Trump’s focus on eliminating unfair tariff and non-tariff trade barriers that disadvantage U.S. family farms.”
NPC identified the following goals for the negotiations that the administration has indicated are coming with key trading partners due to the tariff issues:
- Opening the Japanese market to U.S. fresh potatoes. This request is over 30 years old and, once resolved, is estimated to result in $150 million annually in new exports for U.S. potato growers.
- Eliminating the 13% Vietnamese tariff on frozen fries.
- Eliminating the 10% Philippine tariff on frozen fries.
- Eliminating the 30% Thai tariff on frozen fries.
- Eliminating the 12.5 and 18% Taiwanese tariff on frozen potatoes.
NPC also cautioned that given the export dependence of the U.S. potato industry, there is substantial concern about impairing or completely losing access to these valuable customers through the imposition of retaliatory tariffs or non-tariff barriers by trading partners.
