Latest Tariff Developments

May 12, 2025 RV Industry Association

To see a comprehensive list of what tariffs are currently enacted , view our tariff tracker chart, which provides an easy-to-read overview of tariff impacts by country.

View the Tariff Tracker

Update-Wednesday, May 14, 2025: As we reported last month, on April 2, 2025, President Donald Trump announced a decisive action to close de minimis exemptions for Chinese imports, a move aimed at curbing the flow of illicit synthetic opioids into the United States.

  • After allowing Customs and Border Protection time to develop adequate systems to collect these tariff revenues, duty-free de minimis treatment for covered goods from China and Hong Kong has officially ended as of May 2, 2025.
  • Effective Wednesday, May 14, low-value packages from China are subject to a 54% tariff, down from the 120% rate in place since May 2.
  • Alternatively, carriers can pay $100 per package, a flat fee that was supposed to, but will no longer, increase to $200 next month.
  • Read the full Executive Order…

Update-Monday, May 12, 2025: Today, the White House announced that President Donald Trump reached an agreement with China to reduce China’s tariffs and eliminate retaliation, retain a U.S. baseline tariff on China, and set a path for future discussions to open market access for American exports.

The United States issued the first joint statement on trade in many years with China after successful negotiations over the weekend in Geneva, Switzerland. Both parties affirmed the importance of the critical bilateral economic and trade relationship between both countries and the global economy.

In reaching an agreement, the United States and China will each lower tariffs by 115% while retaining an additional 10% tariff. Other U.S. measures will remain in place. Both sides will take these actions by May 14, 2025.

CHINESE ACTIONS: 

  • China will remove the retaliatory tariffs it announced since April 4, 2025, and will also suspend or remove the non-tariff countermeasures taken against the United States since April 2, 2025.
  • China will also suspend its initial 34% tariff on the United States announced on April 4, 2025, for 90 days, but will retain a 10% tariff during the period of the pause.

AMERICAN ACTIONS: 

  • The United States will remove the additional tariffs it imposed on China on April 8 and April 9, 2025, but will retain all duties imposed on China prior to April 2, 2025, including Section 301 tariffs, Section 232 tariffs, tariffs imposed in response to the fentanyl national emergency invoked pursuant to the International Emergency Economic Powers Act, and Most Favored Nation tariffs.
  • The United States will suspend its 34% reciprocal tariff imposed on April 2, 2025, for 90 days, but retain a 10% tariff during the period of the pause.

ONGOING ACTIONS:
When these changes come into effect, both nations agreed to establish a mechanism to continue important discussions about trade and economics. China will be represented by He Lifeng, Vice Premier of the State Council. The United States will be represented by Scott Bessent, Secretary of the Treasury, and Jamieson Greer, United States Trade Representative.

NEW CHINA TARIFF STACKING:
On May 14, 2025, the China tariffs will stack as follows:

  • 10% reciprocal OR Section 232* (whichever applies depending on the product) + 20% fentanyl + 25%* Section 301 = 55% + existing Most Favored Nation/Normal Trade Relations tariff

* If a Section 232 tariff applies, then the 10% reciprocal tariff will not apply. HTS code lists are specified in the Federal Register.

* Section 301 tariffs are variable, depending on the HTS code and product. Section 301 tariffs currently apply to most Chinese products.

A Most Favored Nation (MFN) tariff—also known as normal trade relations (NTR) in U.S. terminology—is the default tariff rate that a World Trade Organization (WTO) member country agrees to offer to all other WTO members, unless a special trade agreement (like a free trade agreement) gives even lower rates. It's based on the principle of non-discrimination among trading partners.

In practical terms for Chinese products entering the U.S.:

  • China currently receives MFN tariff treatment from the U.S.
    This means that, despite tensions and tariffs added under Section 301 (Trump-era tariffs), China still benefits from the baseline, lowest standard tariff rates the U.S. applies to WTO countries without special trade agreements.
  • If MFN status were revoked, Chinese imports would instead be taxed at "Column 2" tariff rates in the U.S. Harmonized Tariff Schedule. These are significantly higher and were originally designed for non-market economies or adversarial nations (e.g., North Korea, Cuba).

The MFN tariff rate differs by product. It is not a flat rate for all imports from China (or any other country with MFN status). Instead, the U.S. assigns specific MFN rates by product classification using the Harmonized Tariff Schedule (HTS).

To look up the MFN tariff rate (called "Column 1 - General" in U.S. terms) for a specific product imported into the U.S., you use the U.S. Harmonized Tariff Schedule (HTS).

View the White House Fact Sheet. 

Update-Friday, May 9, 2025: Yesterday, May 8, 2025, President Donald J. Trump and U.K. Prime Minister Keir Starmer announced a brand-new trade deal aimed at opening up U.K. markets to U.S. businesses while strengthening America’s national security at the same time.

According to the White House, this agreement will cut tariffs on British cars, steel, and aluminum coming into the U.S., while making it easier for American beef producers to sell their products across the pond. While the final details are still being worked out, the White House has released a fact sheet with a broad overview.

Based on what’s been shared so far:

  • U.S. farmers and producers could gain up to $5 billion in new export opportunities to the U.K. including more than $700 million in ethanol exports and $250 million in other agricultural goods like beef.
  • Both countries are committing to working together to make it easier to trade industrial and agricultural products.
  • The deal closes loopholes and increases U.S. firms’ competitiveness in the UK’s procurement market.
  • It will simplify customs for U.S. exporters.
  • Stronger rules will be in place for things like intellectual property, labor rights, and environmental standards.
  • U.S. aerospace companies will get better access to top-quality U.K. parts, helping keep supply chains strong.
  • It also sets up a secure supply chain for pharmaceuticals.

As for tariffs:

  • The current 10% reciprocal tariff (originally announced on April 2, 2025) is staying in place.
  • The United States will agree to an alternative arrangement for the Section 232 tariffs on UK autos. Under the deal U.K. carmakers can export up to 100,000 vehicles to the U.S. per year at the 10% rate with anything over that being hit with a 25% tariff.

The U.S. has also acknowledged steps the U.K. has taken to address the global steel excess capacity. Both sides will now work on a new arrangement to replace current steel and aluminum tariffs. This includes forming a new trade union focused specifically on those industries.

The White House says this deal sets the stage for more balanced, fair-trade agreements with other countries moving forward.

Update-Wednesday, April 30, 2025: On April 29, 2025, the White House issued an Executive Order providing relief from the stacking effect of some of the tariffs put in place under the second Trump administration. The action applies to the tariffs previously imposed under Section 232 on certain automobiles/parts, aluminum and steel products (and derivatives) and under the International Emergency Economic Powers Act (“IEEPA”) against Canada and Mexico but not to the so-called reciprocal tariffs or the IEEPA tariffs against China.
 
The RV industry is affected by the new executive order in the following ways:

  1. If a product is subject to the Section 232 tariffs on automobiles/parts, it will not be subject to the IEEPA tariffs on Canada and Mexico or the Section 232 tariffs on steel and aluminum (and derivatives).
  2. If a product is subject to the IEEPA tariffs on Canada and Mexico, it will not be subject to the Section 232 duties on steel and aluminum (and derivatives).
  3. Section 232 tariffs on steel and aluminum (and derivatives) are, however, cumulative.  In other words, where a product is subject to both the existing Section 232 tariffs on steel (and steel derivatives) and the tariffs on aluminum (and aluminum derivatives), those tariffs do stack. 

 It's important to note that this relief applies regardless of a company's headquarters location and is retroactive, allowing manufacturers to recoup some earlier tariff costs paid on parts imported since March 4, 2025. The credits can be applied toward future imports of auto parts, effectively reducing the cost burden of tariffs.
 
Also yesterday, the White House issued a proclamation adjusting existing tariffs on certain imported automobiles and automobile parts. Qualifying importers may apply for a tariff offset for imported automobile parts used in U.S.-assembled vehicles based on a percentage of the Manufacturer’s Suggested Retail Price. Within thirty days, the Secretary of Commerce will establish a process to allow manufacturers and importers authorized by that manufacturer to seek such an adjustment.

Update- Friday, April 11, 2025: China announced that it will raise tariffs on U.S. goods from 84% to 125%. However, in the Chinese Finance Ministry's statement announcing the measures, they added, "Given that American goods are no longer marketable in China under the current tariff rates, if the US further raises tariffs on Chinese exports, China will disregard such measures."

Update- Wednesday, April 9, 2025: On Wednesday, April 9, President Trump announced a 90 day pause on the higher reciprocal tariffs that took effect today on nearly 60 countries, with the exception of China. He has immediately increased the tariffs on China to 125%, due to Beijing's continued retaliation. As of this time, it appears that countries who would have seen an increase in tariffs today will only have the baseline 10% tariffs in place during this time.

"Based on the lack of respect that China has shown to the World’s Markets, I am hereby raising the Tariff charged to China by the United States of America to 125%, effective immediately. At some point, hopefully in the near future, China will realize that the days of ripping off the U.S.A., and other Countries, is no longer sustainable or acceptable. Conversely, and based on the fact that more than 75 Countries have called Representatives of the United States, including the Departments of Commerce, Treasury, and the USTR, to negotiate a solution to the subjects being discussed relative to Trade, Trade Barriers, Tariffs, Currency Manipulation, and Non Monetary Tariffs, and that these Countries have not, at my strong suggestion, retaliated in any way, shape, or form against the United States, I have authorized a 90 day PAUSE, and a substantially lowered Reciprocal Tariff during this period, of 10%, also effective immediately. Thank you for your attention to this matter!"

Update-  Tuesday, April 8, 2025: As a result of China's 34% retaliatory tariff on U.S. goods in response to reciprocal tariffs, the White House announced it would add an additional 50% tariff (total reciprocal tariff now 84%) on U.S. imports from China, effective at midnight on Wednesday, April 9th. 

The executive order also increases the duty imposed on low value shipments from 30 percent to 90 percent and increased the per postal item duty that is in effect on or after 12:01 a.m. eastern daylight time on May 2, 2025, and before 12:01 a.m. eastern daylight time on June 1, 2025, from 25 dollars to 75 dollars. The per postal item goods duty in effect on June 1, 2025, will increase from 50 dollars to 150 dollars.

Update- Friday, April 4, 2025: Beginning April 10, 2025, China will impose a 34% retaliatory tariff on all United States imports. If the goods have been shipped from the place of departure before 12:01 on April 10, 2025, and are imported between 12:01 on April 10, 2025, and 24:00 on May 13, 2025, the additional tariffs prescribed in this announcement will not be levied. View China's announcement here. 

On Wednesday, April 2, 2025, President Trump announced reciprocal tariffs on foreign products. Speaking from the Rose Garden, the President stated that the rates will be based on the combined rate of tariffs and non-monetary barriers (such as currency manipulation, subsidized exports, etc.). The President is once again relying on the International Emergency Economic Powers Act of 1977 (IEEPA) for authority, and has declared that foreign trade and economic practices have created a national emergency.

The United States will impose a 10 percent tariff on imports from all countries around the world and will apply an additional, individualized tariff to 50 countries his administration believes have the most unfair trade relationships with the U.S. The 10% baseline rate will take effect on April 5, 2025 at 12:01 am. The individualized rates will take effect on April 9, 2025, at 12:01 am. The tariffs will be half of the combined rate of tariff and non-tariff barriers the country places on the United States. The White House’s Rapid Response account posted the list to X.

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. The order also gives the President authority to increase the tariff if trading partners retaliate, or decrease the tariffs if partners take “significant steps to remedy non-reciprocal trade agreements and align with the United States on economic and national security measures.”

Of note:

  • Some goods will not be subject to the Reciprocal Tariff. These include: (1) articles subject to 50 USC 1702(b); (2) steel/aluminum articles and autos/auto parts already subject to Section 232 tariffs; (3) copper, pharmaceuticals, semiconductors, and lumber articles; (4) all articles that may become subject to future Section 232 tariffs; (5) bullion; and (6) energy and other certain minerals that are not available in the United States.
  • For Canada and Mexico, the existing fentanyl/migration IEEPA orders remain in effect, and are unaffected by this order. This means 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.

The White House’s full fact sheet is available here.

The RV Industry Association will continue to update this piece as more details of the plan become available. Please contact Samantha Rocci, Director of Federal Affairs (srocci@rvia.org) with questions.

Looking for past updates? Check out these articles:

Tariffs Government Affairs President Trump Donald Trump 232