The historic trade deal between the U.S. and the U.K. aims to enhance market access for American exporters, particularly in agriculture, and strengthen U.S. national security. The deal also includes provisions for reciprocal trade with the U.S. and the U.K.

Also of note:

• The reciprocal tariff rate of 10%, as originally announced on Liberation Day, is in effect.
• The United States will agree to an alternative arrangement for the Section 232 tariffs on UK autos.
• • Under the deal, the first 100,000 vehicles imported into the U.S. by UK car manufacturers each year are subject to the reciprocal rate of 10% and any additional vehicles each year are subject to 25% rates.
• The United States also recognizes the economic security measures taken by the UK to combat global steel excess capacity and will negotiate an alternative arrangement to the Section 232 tariffs on steel and aluminum.
• • This deal creates a new trading union for steel and aluminum.

This Executive Order aims to prevent the cumulative effect of multiple tariffs on imported articles. It clarifies that tariffs imposed under certain executive orders will not be cumulative with other tariffs imposed under other executive orders. It also clarifies that the order does not affect the authority of executive departments and agencies to impose duties or other trade measures.

Key Points from Fact Sheet

• Proclamation Goal: To incentivize domestic automobile production and reduce reliance on foreign imports.
• Tariff Modification: Offers an offset to a portion of tariffs for automobile parts used in U.S.-assembled vehicles.
• Offset Percentage: 3.75% of the Manufacturer’s Suggested Retail Price (MSRP) for the first year and 2.5% for the second year.
• Domestic Production Decline: U.S. automobile production has stagnated while foreign industries, supported by subsidies and industrial policies, have expanded.
• Import Dependence: In 2024, the U.S. imported 50% of the vehicles sold, with only 25% of vehicle content categorized as “Made in America.”
• Trade Deficit: The U.S. trade deficit in automobile parts reached $93.5 billion in 2024.

Fact Sheet for President Trump's Executive Order to investigate the national security risks posed by U.S. reliance on imported processed critical minerals and their derivative products. The investigation will assess vulnerabilities in supply chains and the economic impact of foreign market distortions.

Also mentioned:

• China faces up to a 245% tariff on imports to the United States as a result of its retaliatory actions. This includes
• • a 125% reciprocal tariff,
  • a 20% tariff to address the fentanyl crisis,
  • and Section 301 tariffs on specific goods, between 7.5% and 100%.
• President Trump restored a true 25% tariff on steel and elevated the tariff to 25% on aluminum.

The President issued an executive order modifying reciprocal tariff rates in response to trading partner retaliation and alignment. The order suspends country-specific ad valorem rates of duty for most trading partners, imposing a 10% duty instead. It also increases tariffs on China to 125% and implements de minimis tariff increases to prevent circumvention.

The US has ended its de minimis provision for low-value imports from China and Hong Kong, effective May 2, 2025. This means that goods valued at or under $800, previously eligible for duty-free entry, are now subject to tariffs.This change affects many e-commerce companies like Shein and Temu, impacting the cost of goods for American consumers. 

What is de minimis?
De minimis refers to a trade policy that allows low-value goods to enter a country duty-free. It was originally intended to simplify customs procedures for small shipments. 

Why is it being ended for China?
The US government is ending the de minimis provision for China and Hong Kong as part of measures to address the synthetic opioid crisis and to ensure fair trade practices. The US government argues that the provision was being abused by Chinese e-commerce companies to avoid paying tariffs. 

What are the consequences?
The elimination of de minimis means that low-value goods from China will now be subject to tariffs, potentially increasing their price for consumers. This could impact e-commerce companies like Shein and Temu, as well as other businesses that rely on this provision. 

How does this affect consumers?
Lower-income households are expected to be particularly affected, as many of these packages are shipped to areas with lower incomes.