The Whalebacker Guide to Tariffs

April 17, 2025

by Joshua Werner

Understanding the changing state of tariffs is essential for anyone doing business across borders. At Whalebacker, we know how confusing this landscape can be, which is why we’re committed to helping you answer the most pressing question: “What’s this going to cost me?”

*Note: The tariff landscape is shifting rapidly, with changes sometimes happening multiple times in a single week. This guide reflects the current state of importing goods, but we’ll continue to monitor developments and update our clients as things evolve.

What are tariffs and how do they impact international trade?

At their core, tariffs are taxes imposed by governments on imported goods. Businesses importing products from other countries pay the tariff, but the cost is usually passed down to consumers through higher prices. The broader goal? To make domestic products more competitive by raising the cost of foreign alternatives. This protectionist approach can boost local industries, should their infrastructure exist, but it also means price hikes for goods that have been imported.

Reciprocal vs. retaliatory tariffs?

Both terms deal with countries taxing each other’s goods, but the motivations differ:

Reciprocal tariffs are usually part of a negotiated trade deal that aims to improve fairness.
Retaliatory tariffs are reactive and punitive, put in place in response to another country’s tariffs.

Key terms you should know

International Emergency Economic Powers Act (IEEPA):

A 1977 U.S. law that gives the President sweeping authority to regulate trade during national emergencies, with the purpose of addressing emergent threats to national security, foreign policy, or the economy. It’s been a key tool in the recent wave of tariff actions.

De minimus:

This refers to the exemption from duties for shipments from foreign nations valued under $800 per person, per day.

Ad valorem

The most common type of tariff, calculated as a percentage of a product’s value.

USMCA (U.S.-Mexico-Canada Agreement):

This deal sets specific criteria that allow qualifying goods to move between the U.S., Mexico, and Canada either duty-free or at reduced rates. Compliance requires meeting material and manufacturing origin rules and proper documentation.

What’s happening with tariffs on Chinese goods?

Here’s the latest:

April 2, 2025: Tariffs on Chinese goods jumped from 20% to 54%.
April 8, 2025: Another increase of 50% was announced, bringing the total to 104%
April 9, 2025: China placed a retaliatory tariff of 84% on U.S. goods. The U.S. then increased duties on goods from China to 145%
April 11, 2025: A Presidential Memorandum carved out an exemption for a wide range of electronics, especially semiconductors and related devices. If you imported items under the relevant Harmonized Tariff Schedule of the United States (HTSUS) codes on or after April 5th and paid full tariffs, you may be eligible for a refund.

What about books and comic books being printed in China?

At this time there is an exemption covering most print books, including comics and graphic novels.

What about books and comic books being printed in Canada?

Because paper goods using paper grown and manufactured in North America are considered USMCA-compliant products, they are considered exempt from the “reciprocal tariffs” added in April.

What about roleplaying game books?

Two Customs Ruling Online Search System (CROSS) rulings, from 1989 and 1991, specifically addressed the importation of RPG modules. The Customs office determined that since RPG books are not intended for passive reading, but instead to enhance game play, they are to be classified under HS Code 9504, “arcade, table or parlor games… parts and accessories thereof”, rather than HS Code 4901, “Printed books, brochures, leaflets and similar printed matter.” This means that according to CROSS, RPG books from China are currently subject to an ad valorem tariff tax.

Tariff Timeline Snapshot

2018: Section 301 tariffs on Chinese imports introduced (7.5% to 25%).

2/4/25: IEEPA adds an additional 10% tariff on imports from China/Hong Kong.

3/4/25: IEEPA tariffs added an additional 25% duty on imports from Mexico and Canada. IEEPA tariffs changed the additional 10% duty on imports from China and Hong Kong to 20%.

3/7/25: IEEPA tariffs on Mexico and Canada are amended to make the USMCA approved goods exempt from the 25% additional duty.

3/12/25: Section 232 tariffs on steel and aluminum imports from all countries is expanded, raising the tariff on aluminum from 10% to 25% and reinstating a 25% tariff on steel.

4/2/25: IEEPA tariffs added an additional 25% duty (being referred to as a “secondary tariff”) on all imports from any nation that purchases oil from Venezuela or indirectly purchases Venezuelan oil through third parties. This additional duty is imposed at the discretion of the Secretary of State and expires one year after the last date on which that country directly or indirectly imported Venezuelan oil.

4/3/25: The Section 232 tariffs on automobiles and automobile parts imports from all countries is amended, implementing a 25% duty.

4/5/25: IEEPA Executive Order places 10% tariffs on all goods from all countries except Russia, Belarus, Cuba, North Korea, Vatican City, and a few others, citing “reciprocal tariffs”. This rate was set to increase to up to 50% on 4/9 on a list of specific countries that have the largest trade deficit.

4/9/25: Per IEEPA Executive Order, the “reciprocal tariff” placed on China and Hong Kong increases to a total of 145%. A clarification was made that are no tariff changes for Mexico and Canada for USMCA-compliant goods, while non-USMCA-compliant goods receive a 25% tariff. All other countries receiving the reciprocal tariffs that went into effect 4/5 and were scheduled to be adjusted 4/9 have been suspended for 90 days.

4/11/25: Amendment to the earlier April reciprocal tariff, stating that certain electronics like smartphones and monitors are not exempt from new China tariffs, but still subject to March’s 20% IEEPA tariff.

5/2/25: IEEPA Executive Order goes into effect, eliminating the duty-free de minimus rule for goods from China and Hong Kong.

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