U.S. Executive Order Establishes “Reciprocal” Tariff Policy: Key Takeaways for the Aviation Industry

On April 2, 2025, President Donald J. Trump signed an Executive Order (Regulating Imports with a Reciprocal Tariff to Rectify Trade Practices that Contribute to Large and Persistent Annual United States Goods Trade Deficits) (the “Executive Order”), declaring a national emergency with respect to the threat from various foreign trade and economic policies and practices and imposing new tariffs on imports of all articles into the United States customs territory, subject to certain exceptions. Specifically, the Executive Order directs the imposition of a new baseline 10 percent ad valorem rate of duty on imports from almost all U.S. trading partners, as well as jurisdiction-specific ad valorem rates of duty ranging from 11 to 50 percent (when including the baseline 10 percent tariff) on 57 countries and territories.

As indicated in the Executive Order and its accompanying fact sheet, the Executive Order is designed to advance the broader strategy of the Trump Administration (the “Administration”) to “rebalance global trade flows” and reduce “large and persistent” trade deficits that may have adverse impacts to the U.S. manufacturing base, critical supply chains and national security. The Executive Order follows several other tariff-related measures that were imposed by the Administration earlier this year, including with respect to imports from Canada, China and Mexico, and imports of steel, aluminum, automobiles and automobile parts.

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