Tariff Policy

Recent Tariff Updates

Venezuela (and consequently China and others)

On March 24, President Trump signed an Executive Order to impose a 25% "secondary tariff" on all goods imported from countries that purchase oil or gas from Venezuela, either directly or indirectly through third parties. Set to take effect on April 2, it aims to sever financial support for Venezuelan President Nicolás Maduro's regime and address alleged security threats posed by Venezuela.

The tariff will be imposed in addition to existing tariffs and will lapse one year after a country ceases importing Venezuelan oil, or sooner if deemed appropriate. Trump cited Venezuela's hostility towards the United States and alleged deliberate criminal activities as reasons for the tariff.

This action could significantly impact China, the largest importer of Venezuelan oil, potentially raising total tariffs on Chinese goods to 45%.

Canada and Mexico

The U.S. reduced tariffs on non-USMCA qualifying potash from Canada and Mexico from 25% to 10% on March 7, 2025, while potash qualifying under USMCA is exempt from additional duties. This move aims to support U.S. farmers by lowering input costs during the planting season, as potash is a critical fertilizer component. New tariff classifications (9903.01.15-Canada and 9903.01.05-Mexico) were also introduced for non-USMCA potash imports.

Mexico was expected to reveal retaliatory tariffs on the U.S. on March 9, then again on March 16, in response to the 25% U.S. tariff on steel and aluminum, but nothing has been announced. The retaliatory tariffs are expected to be imposed on a targeted list of products. It is possible that Mexico is planning other potential counteractions, as well.

European Union

In retaliation to the U.S. tariffs on global steel and aluminum taking effect March 12, the European Union announced $28 billion worth of U.S. goods (in two phases), including steel, aluminum, textiles, home appliances, and agricultural products. These were originally scheduled to begin on April 1 but has been delayed until mid-April 2025, with no specific date given. These were delayed to allow for negotiations with the U.S. and evaluate the impact of Trump's planned reciprocal tariffs. As originally announced, the first phase will be the reintroduction of "rebalancing measures," which the EU had from 2018 and 2020. That will then be followed by $19.6 billion worth of other U.S. exports. 

Reciprocal Tariffs

The Commerce Department is set to present a tariff plan to Trump on April 1, 2025. These reciprocal tariffs could be imposed as early as April 2, 2025, for what is dubbed as "Liberation Day". It is expected that the White House is considering focusing on the "dirty 15," which refers to approximately 15% of nations that maintain an unfavorable trade balance with the United States, for the initial round of reciprocal tariffs. Those countries considered as the "dirty 15" have not been disclosed.

Automotive Tariffs

On March 26, Trump announced a 25% tariff on all auto imports and parts to the U.S., set to take effect on April 3, 2025. While the tariff on vehicles takes effect April 3, auto parts tariffs are delayed until May 3 at the latest, and USMCA-compliant vehicles and parts receive partial exemptions, with tariffs applying only to their non-U.S. content.

Tariff Overview: Background and Recent Actions

President Trump Imposes Tariffs on Canada, Mexico, China (and likely the EU) - Retaliatory Tariffs Imposed

On February 1, 2025, President Trump signed executive orders imposing significant tariffs on Mexico, Canada, and China. The measures include:

• 25% tariff on most imports from Mexico and Canada and have been paused once again on USMCA-qualifying goods, originally effective March 4, but now paused until April 2 (both were paused for 30 days following the initial February 4 implementation date). Tariffs on non-USMCA goods are currently imposed at 25%.
• 10% tariff on Canadian energy resources also paused again until April 2 for USMCA-qualifying energy, but were originally effective March 4 (previously paused for 30 days). Non-USMCA energy is currently imposed at 10%.
• 10% tariff on non-USMCA potash; USMCA-qualifying potash is exempt as of March 7.
• 20% tariff on all Chinese imports (initially 10%, first effective February 4 followed by an amendment to Trump's Executive Order imposing an additional 10% tariff effective March 4).

These tariffs are in addition to existing duties and eliminate the $800 de minimis exemption for small shipments. The administration cited national security concerns related to immigration, drug trafficking, and supply chain risks as justification.

In a short-lived exchange on March 11, President Trump threatened to impose 50% tariffs on Canadian steel and aluminum, but quickly reversed course after Ontario Premier Doug Ford rescinded a planned 25% surcharge on electricity exports to the U.S.

Latest Round of Pauses for Tariffs on Mexico and Canada

• On March 5, Trump announced a one-month pause on the 25% tariffs for automobiles imported from Canada and Mexico following discussions with executives from the big three auto manufacturers.
• On March 6, Trump delayed the imposition of 25% tariffs on goods from Canada and Mexico that are covered under the United States-Mexico-Canada Agreement (USMCA) until April 2.

Chinese Tariff

While the 20% tariff on all Chinese imports is now in effect, the de minimis exemption for small shipments under $800 is temporarily suspended pending the Secretary of Commerce's notification to the President that "adequate systems are in place to fully and expediently process and collect tariff revenue for all Chinese products." The initial tariff was 10% but was doubled March 4. The scheduled 25% tariff on Venezuelan oil and gas importers could also increase China's tariff rate.

Venezuela (and consequently China and others)

On March 24, President Trump signed an Executive Order to impose a 25% "secondary tariff" on all goods imported from countries that purchase oil or gas from Venezuela, either directly or indirectly through third parties. Set to take effect on April 2, it aims to sever financial support for Venezuelan President Nicolás Maduro's regime and address alleged security threats posed by Venezuela.

The tariff will be imposed in addition to existing tariffs and will lapse one year after a country ceases importing Venezuelan oil, or sooner if deemed appropriate. Trump cited Venezuela's hostility towards the United States and alleged deliberate criminal activities as reasons for the tariff.

This action could significantly impact China, the largest importer of Venezuelan oil, potentially raising total tariffs on Chinese goods to 45%.

European Union

During his first cabinet meeting on February 26, 2025, Trump stated he will impose a 25% tariff on EU imports, mentioning "cars and all other things". He said this would be announced "very soon".

Steel and Aluminum

On February 10, 2025, President Trump signed proclamations imposing a 25% tariff on all imported steel and aluminum, that went into effect March 12, 2025. This action revives and expands upon tariffs from his previous administration:

• The 25% steel tariff, previously modified to allow numerous exemptions, is reinstated.
• The aluminum tariff is increased from 10% to 25%, also removing previous exemptions.

All prior exemptions for both steel and aluminum tariffs are now void.

Copper Tariffs

On March 12, Commerce Secretary Howard Lutnick confirmed that Trump intends to include copper in his trade protection initiatives. This comes after a Trump executive order directing the Commerce Department to investigate potential national security risks of copper imports, which could lead to a 25% tariff on all copper imports. The investigation is to be completed by November 22, 2025.

Reciprocal Tariffs

On February 13, 2025, Trump signed a memorandum directing his administration to develop a plan for implementing reciprocal tariffs on U.S. imports. These tariffs aim to mirror those placed on U.S. goods by other countries. For example:

• Current U.S. tariff on ethanol: 2.5%
• Brazil's tariff on U.S. ethanol: 18%
• Potential reciprocal U.S. tariff on Brazilian ethanol: 18%

The Commerce Secretary and U.S. Trade Representative are expected to study and report on tariff rates on a country-by-country basis by April 1, with the possibility that they could be imposed as early as April 2 for what is dubbed as "Liberation Day". It is expected that the White House is considering focusing on the "dirty 15," which refers to approximately 15% of nations that maintain an unfavorable trade balance with the United States, for the initial round of reciprocal tariffs. Those countries considered as the "dirty 15" have not been disclosed.

Automotive Tariffs

On March 26, Trump announced a 25% tariff on all auto imports and parts to the U.S., set to take effect on April 3, 2025. While the tariff on vehicles takes effect April 3, auto parts tariffs are delayed until May 3 at the latest, and USMCA-compliant vehicles and parts receive partial exemptions, with tariffs applying only to their non-U.S. content. Some EU leaders are calling for retaliatory measures, while some Asian countries are seeking exemptions. Additionally, Canada and Mexico are arguing for preferential treatment under the USMCA.

International Response

China

In retaliation to the U.S. tariffs, China imposed additional tariffs on specific U.S. goods, effective February 10, 2025:

• 15% additional tariff on U.S. coal and liquefied natural gas imports.
• 10% additional tariff on U.S. crude oil, agricultural machinery, and certain cars and pickup trucks.
• Additional tariffs ranging from 10% to 15% on various U.S. agricultural products, including chicken, pork, soybeans, and beef, starting March 10, 2025; announced following the March 4 U.S. tariffs.
• Filed a formal complaint with the World Trade Organization (WTO), initiating the dispute settlement process, alongside additional retaliatory actions.
• Implemented (as of February 4) export controls on critical minerals like tungsten, tellurium, bismuth, molybdenum, and indium - all important minerals for various industries from technology to pharmaceuticals, to munitions and aerospace.
• Following Trump's announcement of an additional 10% tariff, China promised to "implement all required counteractions to safeguard its legitimate rights and interests"

Canada

• On March 4, the 25% Canadian tariff on $20 billion of U.S. goods went into effect. This was the date that the U.S. tariffs on Canadian goods were originally scheduled to take effect. In the time since the U.S. announced the pause through April 2 on Canadian tariffs, no Canadian pause was made. As the Canadian tariffs remain in place, it is expected that another $86 billion worth of U.S. goods will be tariffed on March 25. The originally proposed tariffs had been paused for 30 days following a call between Trump and Canada's Prime Minister Justin Trudeau. During the call, Trudeau had agreed to implement a $1.3 billion border plan to target the flow of the deadly opioid fentanyl across the border into the U.S. and appoint a Fentanyl Czar.
• In retaliation to the U.S. tariffs on global steel and aluminum taking effect March 12, Canada announced retaliatory tariffs worth about $20.7 billion on U.S. goods, including steel, aluminum, and other products, set to take effect March 13.

Mexico

• For the time being, the pause on tariffs directly on Mexico remains through April 2.
• Following the U.S. imposing the 25% U.S. tariff on global steel and aluminum,  Mexico said that they will impose retaliatory tariffs. Retaliatory tariffs are expected to be imposed on a targeted list of products and it is possible that Mexico is planning other potential counteractions, as well. These are expected to be announced March 16.
• The first announced U.S. tariffs were initially paused for 30 days following President Trump's announcement that Mexico would immediately reinforce the northern border with 10,000 members of the National Guard to prevent the flow of fentanyl and illegal immigrants from Mexico to the United States.

European Union

• The European Union (EU) has pushed back against Trump's EU tariff threat. A European Commission spokesperson said they'll "respond decisively and promptly to any unjustified obstacles to free and fair trade." The EU stressed the importance of their trade relationship with the U.S. but made it clear they're prepared to use retaliatory measures if necessary.
• In retaliation to the U.S. tariffs on global steel and aluminum taking effect March 12, the European Union announced $28 billion worth of U.S. goods (in two phases), including steel, aluminum, textiles, home appliances, and agricultural products, scheduled to begin on April 1 but has been delayed until mid-April 2025, with no specific date given. These were delayed to allow for negotiations with the U.S. and evaluate the impact of Trump's planned reciprocal tariffs. As originally announced, the first phase will be the reintroduction of "rebalancing measures," which the EU had from 2018 and 2020. That will then be followed by $19.6 billion worth of other U.S. exports.

Trump previously warned that retaliatory tariffs could trigger further tariff escalation.

Industry Impact and What We Can Do

The newly imposed tariffs on Canada, Mexico, China, and global steel and aluminum will have a significant and direct impact on the pool and hot tub industry. Furthermore, the possibility of new tariffs on European Union goods adds to these challenges, creating a complex trade environment. Imported or exported products, components, and materials used in the manufacturing of pool and hot tub products to or from Mexico, Canada, China, and the EU will be directly impacted by the tariffs.

PHTA and the International Hot Tub Association (IHTA) recognize that our membership encompasses manufacturers and businesses with diverse and competing interests regarding potential tariff implementations. PHTA/IHTA have deliberately adopted an agnostic position that respects the varied perspectives within our membership.

PHTA and IHTA committees have, however, been proactively engaging with the new administration, offering ourselves and our membership as a conduit for balanced dialogue and ensuring that multiple viewpoints are represented should the new administration reach out to us to discuss the proposed tariffs. Additionally, PHTA is working closely with our Federal lobbyist team DCLRS and various organizations (i.e., National Association of Manufacturers) to navigate these proposals and work towards a favorable outcome for all involved.

What Can PHTA/IHTA Members Do?

PHTA/IHTA encourages our members to share the impact of tariffs on their businesses, whether positive or negative. Companies can directly reach out to their representative members of Congress or share the impacts with PHTA, who will then communicate with members of Congress and the administration.

The PHTA Government Relations team, IHTA, the PHTA Government Relations Advisory Committee (GRAC), and other PHTA committees are working together as new tariff developments evolve. PHTA will continue to update the industry as new developments come to light.

Please reach out to PHTA's Director of Government Relations Tyler Jones with any questions.

Table of Tariffs

Current, scheduled, and announced tariffs