Tariff Policy

Recent Tariff Updates

On April 2, President Trump moved forward with what he dubbed “Liberation Day” where he signed an Executive Order to impose tariffs on all countries at a minimum, baseline rate of 10% effective April 5. The announcement also included a lengthy list of reciprocal tariffs to be imposed on specific countries that range from a rate of 11% up to 54% effective April 9. The reciprocal tariffs are described has . The Executive Order includes a list of products exempt from the 10% baseline tariff and reciprocal rates, including certain metals, minerals, pharmaceuticals, semiconductors, lumber, electronics, and energy-related goods.

USMCA

United States–Mexico–Canada Agreement-compliant goods remain mostly unchanged by the April 2 tariffs. USMCA-compliant goods remain exempt from tariffs, while non-compliant imports from Canada and Mexico face 25% duties. The 10% baseline tariff also does not apply to USMCA-compliant goods. Additionally, the tariffs on non-USMCA qualifying potash from Canada and Mexico remain at the previously announced 10% rate. The Executive Order also states that, if these 25% and 10% tariffs are terminated, the tariff rate will shift to 12% for non-USMCA compliant goods, but no word on such a termination has been made.

China

The April 2 announcement imposed an increased reciprocal rate of 34%. This must then be added to the previous 20% rate, making the tariff 54%. There is no official confirmation that the 25% "secondary tariff" on countries importing Venezuelan oil has been formally imposed on China as of April 3. However, if activated, this tariff would add 25% to existing duties, potentially resulting in a total rate of 79% for Chinese goods already subject to the new 54% reciprocal tariff.

China De Minimis Exemption Removed

On April 2, President Trump signed an Executive Order explicitly removing the De Minimis exemption on Chinese imports effective May 2. This change means that goods valued at or under $800 from China will face a duty of 30% of their value or a flat fee of $25 per item (increasing to $50 June 1) for postal shipments, and non-postal imports will be subject to all applicable duties. NOTE: The De Minimis Exemption remains for all other countries until adequate systems are in place to fully and expeditiously process and collect duty revenue.

International Response

China has pledged to retaliate against the 54% tariff, possibly targeting agricultural products and expanding there non-tariff barriers (NTBs).

The European Union said that they are preparing "countermeasures," including potential duties on U.S. exports, with EU chief Ursula Von der Leyen warning of "severe repercussions" if negotiations fail.

Canada has already imposed retaliatory tariffs in response to earlier U.S. steel/aluminum tariffs and signaled further action if these new tariffs proceeded. Prime Minister Mark Carney has said that Canada will "respond with purpose and with force" and "combat these tariffs with counteractions". He also promised to impose a 25% tariff on U.S. automobiles that are non-USMCA compliant. This is on the whole car, but not on parts and components.

China, Japan, and South Korea agreed to strengthen semiconductor supply-chain cooperation and accelerate trilateral free trade negotiations to counter U.S. tariffs. Chinese state media claimed a unified response, but South Korea later described this as "somewhat exaggerated."

Several other countries have announced that they are looking into retaliatory options.

Tariff Flexibility in Response to Global Trade

The April 2 Executive Order provides that retaliation from other countries imposing additional duties on the U.S. could lead to increased or expanded tariffs; countries addressing unfair trade practices and aligning with U.S. economic/security goals may see tariffs reduced; and, if U.S. manufacturing capacity and output continue to worsen, the government may increase further tariffs.

Tariff Overview: Background and Recent Actions

President Trump Imposes Tariffs on Canada, Mexico, China, and the EU - Some 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 non-USMCA goods. Tariffs on most imports from Mexico and Canada continue to remain exempt on USMCA-qualifying goods, having been paused multiple times in the last few months.
• 10% tariff on non-USMCA energy is currently imposed. Tariffs remain exempt on USMCA-qualifying Canadian energy resources, having been paused multiple times in the last few months.
• 10% tariff on non-USMCA potash; USMCA-qualifying potash is exempt as of March 7.
• 54% tariff on most Chinese imports (initially 10% in February, then 20% through an amendment in March).

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.

Global Baseline and Reciprocal Tariffs

On April 2, President Trump moved forward with what he dubbed “Liberation Day” where he signed an Executive Order to impose tariffs on all countries at a minimum, baseline rate of 10% effective April 5. The announcement also included a lengthy list of reciprocal tariffs to be imposed on specific countries that range from a rate of 11% up to 54% effective April 9. The Executive Order includes a list of products exempt from the 10% baseline tariff and reciprocal rates, including certain metals, minerals, pharmaceuticals, semiconductors, lumber, electronics, and energy-related goods.

The April 2 Executive Order provides that retaliation from other countries imposing additional duties on the U.S. could lead to increased or expanded tariffs; countries addressing unfair trade practices and aligning with U.S. economic/security goals may see tariffs reduced; and, if U.S. manufacturing capacity and output continue to worsen, the government may increase further 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 were 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 were to study and report on tariff rates on a country-by-country basis, which they completed on April 1. This report is what led up to the tariffs announced on April 2.

Chinese Tariff

On April 2, President Trump imposed an increased reciprocal rate of 34% on China. This must then be added to the previous 20% rate, making the tariff 54%. There is no official confirmation that the 25% "secondary tariff" on countries importing Venezuelan oil has been formally imposed on China as of April 3. However, if activated, this tariff would add 25% to existing duties, potentially resulting in a total rate of 79% for Chinese goods already subject to the new 54% reciprocal tariff. The initial tariff was 10% but was doubled March 4.

Also on April 2, President Trump signed an Executive Order explicitly removing the De Minimis exemption on Chinese imports effective May 2. This change means that goods valued at or under $800 from China will face a duty of 30% of their value or a flat fee of $25 per item (increasing to $50 June 1) for postal shipments, and non-postal imports will be subject to all applicable duties. NOTE: The De Minimis Exemption remains for all other countries until adequate systems are in place to fully and expeditiously process and collect duty revenue.

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. This took 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 is expected to 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.

European Union

On April 2, Trump’s reciprocal tariffs included a 20% tariff on EU imports that will become effective April 9.

Back on February 26, during his first cabinet meeting, Trump had 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, 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.

Automotive Tariffs

On March 26, Trump announced a 25% tariff on all non-USMCA compliant auto imports to the U.S., which took effect on April 3, 2025. While the tariff on non-USMCA compliant vehicles took effect April 3, auto parts tariffs are delayed until June, and USMCA-compliant vehicles and parts remain exempt.

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"
• Following Trump’s April 2 54% tariff, China urged the U.S. to "immediately cancel" the tariffs and said that they will implement countermeasures to defend their rights and interests.

Canada

• On March 4, the 25% Canadian tariff on $30 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. The U.S. had announced a pause through April 2 on Canadian tariffs, but no Canadian pause was made. As the Canadian tariffs remain in place, it had been expected that another $86 billion worth of U.S. goods will be tariffed on March 25, but this did not come to fruition. The originally proposed tariffs had been paused for 30 days following a call between Trump and the then-Canadian 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, which took effect March 13.
• In response to the April 2 tariffs, Prime Minister Mark Carney has said that Canada will "respond with purpose and with force" and "combat these tariffs with counteractions". He also announced that Canada would impose a 25% tariff on U.S. automobiles that are non-USMCA compliant. This is on the whole car, but not on parts and components.

Mexico

• Following the U.S. imposing the 25% U.S. tariff on global steel and aluminum, 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 was ever announced.
• 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.
• Mexico announced a "strengthened economic initiative" (Plan México) focused on domestic production, including boosting Mexican auto manufacturing to reduce reliance on imports, but has stated that they will not impose tit-for-tat tariffs.

European Union

• The European Union (EU) had pushed back against Trump's EU tariff threat. A European Commission spokesperson had said that they would "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.
• Following Trump’s April 2 tariffs of 20%, the European Union said that they are preparing "countermeasures," including potential duties on U.S. exports, with EU chief Ursula Von der Leyen warning of "severe repercussions" if negotiations fail.

Industry Impact and What We Can Do

The newly imposed tariffs on Canada, Mexico, China, and soon the EU and the entire globe will have a significant and direct impact on the pool and hot tub industry. Furthermore, the possibility of new tariffs being considered on U.S. exports 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 any and every country will be directly impacted by the new 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 Manufactures) 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