On April 2, President Donald Trump used the power he has under the International Emergency Economic Powers Act of 1977 to announce a 10% tariff on most countries. These tariffs will take effect on April 5 at 12:01 a.m. EDT. They will remain in place until the administration “determines that the threat posed by the trade deficit and underlying nonreciprocal treatment is satisfied, resolved, or mitigated,” according to the White House. This order also allows Trump to increase or decrease the tariffs based on actions trade partners may take in the future.

Canada and Mexico are exempted from this list because there is already a 25% tariff on goods from those countries. USMCA-compliant goods will continue to see a 0% tariff, non-USMCA compliant goods will see a 25% tariff, and non-USMCA compliant energy and potash will see a 10% tariff. 

On more than 60 countries, the “reciprocal tariff” will be higher. According to CBS News, the tariffs are additive, so imports will see the universal tariff of 10% and any nation-specific reciprocal import. These tariffs will take effect on April 9 at 12:01 a.m. EDT.

NECA released a statement on what these tariffs could mean for those working in the electrical construction industry. The association encourages business leaders to strengthen supplier partnerships and explore domestic sourcing opportunities, adapt contract strategies and engage in policy discussion. With a global supply chain, contractors may see some increased costs on materials. The good news for contractors is that copper, semiconductors and other critical materials needed to provide power are exempted.

Lumber is also exempted, offering additional good news for electrical construction and the broader construction industry.

NECA CEO David Long said, “we appreciate the Administration's efforts to support American businesses and are encouraged that several key materials critical to the electrical construction industry-such as copper, semiconductors, steel, and aluminum-are not subject to these new reciprocal tariffs.Ensuring access to these essential goods at competitive prices is vital to the success of our contractors and the broader economy.”

There are several other exemptions to the tariffs, including articles subject to 50 USC 1702(b), steel/aluminum articles and autos/auto parts already subject to Section 232 tariffs, pharmaceuticals, all articles that may become subject to future Section 232 tariffs, bullion, and energy and other certain minerals that are not available in the United States, according to the White House.

According to the President, these tariffs will address trade imbalances and reprioritize U.S. manufacturing.