On April 2, President Trump announced he is using his authority under the International Economic Emergency Powers Act (IEEPA) to impose broad tariffs on nearly all imports entering the United States.
The new policy means that at a minimum there will be an additional 10% tax on ALL imports coming into the U.S. These tariffs will stack on top of any already in place.
In addition to this blanket tariff, the President announced “reciprocal” tariffs targeting more than 100 trading partners. The term “reciprocal” suggests these tariffs are based on foreign duties imposed on U.S. goods, however, the tariff rates are actually determined using trade deficit data and other trade barriers identified by the administration. The goal is to reduce trade imbalances rather than directly mirror foreign tariff policies. A full list of countries and subject to reciprocal tariffs is available at the end of this article.
The 10% tariff on ALL imports will take effect April 5 and the reciprocal tariffs will take effect on April 9. Keep in mind that these tariffs can stack on top of other tariffs imposed by the president unless there are specific exemptions in place. As of right now, the 10% baseline tariffs will be additive to all goods, while the reciprocal tariffs have the following exemptions:
- Donations, goods in personal effects/baggage, information transfers, postal and other transactions that do not involve the transfer of anything of value;
- Steel and aluminum articles as well as autos and auto parts already subject to Section 232 tariffs;
- Copper, pharmaceuticals, semiconductors, and lumber articles (These items are currently under investigation and may face their own tariffs later this year);
- All articles that may become subject to future Section 232 tariffs;
- Bullion; and
- Energy and critical minerals that are not available in the United States.
IEEPA tariffs were placed on Canada and Mexico in March, and as such will not be subject to either the baseline or reciprocal tariffs from April 2. They will continue to have their own tariff policies imposed by the President. Should these existing IEEPA tariffs on Canada and Mexico be removed, the USMCA compliant goods would continue to receive preferential treatment, while non-USMCA compliant goods would be subject to a reciprocal tariff. Click here to find out more about the existing tariffs on Canada and Mexico.
The Executive Order signed by the President also contains the ability to modify these tariffs, allowing the Administration to increase or decrease the tariffs based on how America’s trading partners retaliate or react.
Additionally, President Trump announced that the de minimis exemption for tariffs on shipments under $800 will no longer apply after May 2. This exemption was originally introduced to streamline small-package imports and reduce administrative burdens on the postal service and Customs and Border Protection (CBP). The removal of this exemption could disrupt small-scale international shipments, but the impact on construction companies remains unclear. If shipping volumes do not decrease, customs processing delays may occur, potentially slowing the delivery of imported materials.
The full impact of these tariffs on the construction industry remains uncertain, but AGC is closely monitoring developments and assessing potential consequences for contractors. Jeffrey D. Shoaf, AGC’s chief executive officer, emphasized the importance of clarity in navigating these changes. “Now that the President has provided specific details about his tariff plans, the private sector can decide how best to proceed with planned projects,” Shoaf said. “Our hope is that the benefits of greater clarity and supply chain certainty outweigh the impacts of higher materials prices and construction costs.”
AGC has developed a Resource Center for contractors to help track all tariff developments and assist contractors trying to navigate tariffs. New resources will be added and updated regularly to help contractors stay informed.
Reciprocal Tariff Rates:
| • E.U. – 20% |
| • Albania – 10% |
| • Algeria – 30% |
| • Angola – 32% |
| • Argentina – 10% |
| • Armenia – 10% |
| • Australia – 10% |
| • Azerbaijan – 10% |
| • Bahamas – 10% |
| • Bangladesh – 37% |
| • Belize – 10% |
| • Botswana – 37% |
| • Brazil – 10% |
| • Cambodia – 49% |
| • Cameroon – 11% |
| • Chile – 10% |
| • China – 34% |
| • Colombia – 44% |
| • Costa Rica – 10% |
| • Cote d’Ivoire – 21% |
| • Democratic Republic of the Congo – 11% |
| • Dominican Republic – 10% |
| • Ecuador – 10% |
| • Egypt – 10% |
| • El Salvador – 10% |
| • Falkland Islands – 41% |
| • Gabon – 10% |
| • Georgia – 10% |
| • Guatemala – 10% |
| • Honduras – 10% |
| • India – 26% |
| • Indonesia – 32% |
| • Iraq – 39% |
| • Israel – 17% |
| • Jamaica – 10% |
| • Japan – 24% |
| • Jordan – 20% |
| • Kazakhstan – 27% |
| • Kuwait – 10% |
| • Laos – 48% |
| • Lebanon – 10% |
| • Lesotho – 50% |
| • Madagascar – 47% |
| • Malaysia – 24% |
| • Moldova – 31% |
| • Morocco – 10% |
| • Mozambique – 16% |
| • Myanmar (Burma) – 44% |
| • Nepal – 10% |
| • New Zealand – 10% |
| • Nicaragua – 18% |
| • Norway – 15% |
| • Oman – 10% |
| • Pakistan – 29% |
| • Paraguay – 10% |
| • Peru – 10% |
| • Philippines – 17% |
| • Saudi Arabia – 10% |
| • Senegal – 10% |
| • Serbia – 37% |
| • Singapore – 10% |
| • Sint Maarten – 10% |
| • South Africa – 30% |
| • South Korea – 25% |
| • Sri Lanka – 44% |
| • Suriname – 10% |
| • Switzerland- 31% |
| • Taiwan – 32% |
| • Tanzania – 10% |
| • Togo – 10% |
| • Trinidad and Tobago – 10% |
| • Tunisia – 28% |
| • Turkey – 10% |
| • UAE – 10% |
| • Uganda – 10% |
| • United Kingdom – 10% |
| • Uruguay – 10% |
| • Vietnam – 46% |
| • Zambia – 17% |
For more information, contact deniz.mustafa@agc.org or jordan.howard@agc.org.