Executive Orders Calling for Tariffs Explained
Current status of new tariffs on imported products
NAMM will update this page after we fact-check new developments.
Jump to
- About Section 232 of the Trade Expansion Act of 1962
- What Is IEEPA?
- What Is Included in the Executive Orders?
- Important Dates
- What NAMM Members Can Do
- Suggested Resources
February 24, 2024
The implementation of steel and aluminum tariffs is scheduled for March 12; however, there remain uncertainties regarding the inclusion of derivative products and the methodology for determining the percentage of steel and aluminum in these products. The tariffs on Canada and Mexico are facing a deadline set to expire on March 4 deciding whether they will be implemented or if the pause will be extended. While there have been discussions behind the scenes, the future of these tariffs remains ambiguous. Following a recent call, President Trump stated that the tariffs will proceed, but further delays could still occur. Additionally, there are ongoing threats related to autos, lumber, and other categories. Furthermore, there has been a renewed focus on 301 investigations concerning Digital Services Taxes, with plans to reassess previous cases and include more countries. Lastly, a memo issued earlier today addresses 301 remedies regarding ships built in China, which could have significant repercussions.
February 10, 2025
On Monday, February 10, President Trump signed two executive orders and announced an increase in tariffs on steel and aluminum imports, setting them at a uniform rate of 25% with no exceptions or exemptions. The increase is significant, as the previous rate was 10%. The executive orders also abolish any country-specific exemptions, quota agreements, and numerous product-specific tariff exclusions for both metals. According to a White House official, these measures are set to be implemented on March 12, 2025.
The directives were enacted under Section 232 of the Trade Expansion Act of 1962, which allows the president to modify imports, including the imposition of tariffs, if deemed a threat to national security.
About Section 232 of the Trade Expansion Act of 1962
Section 232 of the Trade Expansion Act of 1962 grants the U.S. president the authority to investigate and take action on imports that may pose a threat to national security. This section enables the president to impose tariffs or other trade restrictions based on findings from investigations conducted by the Department of Commerce. The provision is designed to protect the domestic economy and industries critical to national defense by regulating foreign competition when necessary.
February 7, 2025
NAMM recorded a webinar on February 6 to provide an update on tariffs, with special attention dedicated to explaining the suspension of the de minimis exemption on products imported from China that cost less than $800. On Friday, February 7, President Trump suspended the executive orders revoking the de minimis exception for imports from China until there is infrastructure in place to enforce them. Once there is an enforcement mechanism, which includes a method for the ability to collect tariffs, we expect the orders to cancel the $800 de minimis exception will go back into effect.
February 4, 2025
On Tuesday, China responded to the implementation of U.S. tariffs on its goods by imposing retaliatory tariffs on certain American imports and launching an antitrust investigation into Google. This action came after President Trump’s increase in tariffs levied on Chinese products went into effect on February 4.
China's Ministry of Finance revealed new measures, including a 15 percent tariff on liquefied natural gas and coal. Additionally, a 10 percent tariff will be applied to crude oil, pickup trucks, agricultural equipment, and vehicles with large engines. In addition, China's Ministry of Commerce announced it will implement export restrictions on key elements such as tellurium, bismuth, tungsten, indium, and molybdenum.
February 3, 2025
On February 1, President Trump issued three executive orders backed by the International Emergency Economic Powers Act of 1977 (IEEPA) in order to levy tariffs on goods from Canada, Mexico and China. Though initially slated to take effect on February 4, 2025, last-minute negotiations led to a 30-day delay (from February 3) in implementation of tariffs on products from Mexico and Canada.
The delay resulted from ongoing discussions with Mexican President Claudia Sheinbaum and Canadian Prime Minister Justin Trudeau. President Trump announced the pause in tariffs via a Truth Social post, with the President stating that the countries had agreed to new measures to address fentanyl trafficking and illegal immigration.
The 10% increase in tariffs on products from China, however, will go into effect on February 4 as planned. President Trump announced that he will speak with Chinese President Xi Jinping sometime this week and stated, “China hopefully is going to stop sending us fentanyl, and if they're not, the tariffs are going to go substantially higher.”
NAMM CEO John Mlynczak issued the following statement on behalf of the global music products industry, which reads, in part, "We call for universal exemptions from punitive tariffs for all musical products and accessories that are used by musicians worldwide."
The developments and actions so far represent a temporary reprieve from a potential full-blown trade war, though the underlying tensions remain. The 30-day suspension on Mexican and Canadian tariffs provides an opportunity for diplomatic resolution, but the ultimate outcome remains uncertain and depends on the ability of the involved nations to reach mutually acceptable agreements on trade, immigration and drug control.
What Is the IEEPA?
The International Emergency Economic Powers Act of 1977 (IEEPA) grants the president the authority to respond to any "unusual and extraordinary" external threats to the U.S. national security, foreign policy, or economy following a declaration of national emergency under the National Emergencies Act (NEA). Upon making such a declaration, the president can impose sanctions, freeze assets, and regulate or prohibit the importation of property that involves foreign countries or nationals.
Presidents may utilize IEEPA to establish export controls, embargoes, and sanctions against countries and individuals and block imports from specified nations and transactions involving particular foreign nationals. The terms "unusual and extraordinary threat" and "national emergency" are not defined in either IEEPA or NEA, which provides the president with significant freedom in determining what constitutes a national emergency and the appropriate measures to take in response to it.
By invoking the International Emergency Economic Powers Act (IEEPA), the National Emergencies Act (NEA), section 604 of the Trade Act of 1974, as amended (19 U.S.C. 2483), and section 301 of title 3, United States Code, President Trump was able to cite the “extraordinary threats” to national security posed by illegal immigration and drug trafficking, particularly fentanyl.
What Is Included in the Executive Orders
The White House issued a fact sheet detailing the tariffs, which were to be imposed in addition to existing tariffs and included provisions for escalation in the event of retaliatory measures from affected countries. Canada, Mexico and China immediately voiced plans for countermeasures. Of note:
- There are currently no exemptions and no process for requesting exemptions.
- President Trump has indicated he will levy additional tariffs if there are retaliatory tariffs.
- The de minimis exemption on products that cost less than $800 and drawbacks have been suspended.
The Federal Register notice hasn't been posted yet, so enforcement agencies lack guidance for how to deal with carve outs for products loaded on trucks before the executive orders were issued.
Important Dates
March 4: Canada and Mexico tariffs hold set to expire.
March 12: Implementation of steel and aluminum tariffs is scheduled.
What NAMM Members Can Do
- Watch NAMM’s Update on Tariffs webinar from Thursday, February 6, 2025.
- Join an informal working group featuring guest speakers who will share information and updates. Dates to be announced.
- Reach out to your Member of Congress to let them know how tariffs will impact your business. Find your representatives.
- Sign the National Retail Federation petition to keep consumer goods affordable.
- Track data on the actual impact of tariffs over time so that you are ready to contribute to the local, state and national picture. Presenting lawmakers with the actual impact on U.S. businesses may have more of an impact when requesting exemptions.