US Tariff Update: Likely Transition to a Reciprocal Tariff System

Update as of February 10, 2025

The latest developments in U.S. tariffs point towards a transition to a reciprocal tariff system, in which tariffs for importing goods into America from any country are aligned with the tariffs imposed by that country on imports from the U.S.

Example of Tariff Calculation in a Reciprocal Tariff System

Let's take the example of passenger vehicles with an engine displacement between 1500 and 3000 cubic centimeters, internal combustion engine.

[U.S. Customs Classification: 8703.23.01.10; EU Customs Classification: 8703.23.19]

The tariff for importing these vehicles into the United States is 2.5%, whereas the tariff for importing the same vehicle into the EU is 10%.

Assuming an import price of $15,000, here is the tariff calculation for importing into the U.S. and the EU:

• The import tariff into the U.S. would be $375, while
• The import tariff into the EU would be $1500.

There is therefore a tariff difference of $1125 disadvantageous for imports from the U.S. to Europe. The same type of vehicle is subject to different import duties, which in this case, favor imports of goods and merchandise from Europe to the United States.

Impact of U.S. Tariff Increases on Italian Exports to America

The average weighted tariff for importing into the U.S. in 2022 was 2.5%. In the same period, the average weighted tariff for importing into the European Union was 2.7%.

Considering that exports from Italy to the U.S. amounted to €67.2 billion in 2024, a difference of 0.02% in the average weighted tariffs would result in an additional €134 million in duties on Italian exports to the U.S. annually.

Update of November 21, 2021

U.S. Duties: The changes in customs classification of goods to be imported to America

Starting January 1, 2022, several updates to the classification system for products to be imported into the United States will go into effect

Significant changes to the Harmonized Tariff Schedule of the United States (HTSUS) will go into effect on January 1, 2022. These changes implement a major revision of the Harmonized System (HS) nomenclature adopted by the World Customs Organization (WCO) known as "HS 2022".

The proposed changes to the HTSUS can be found in USITC in Publication Number 5171. The final version of the changes to the HTSUS will be published by presidential proclamation by the end of 2021. Highlights of the amendments include the following:

• New customs classifications related to smartphones, electronic cigarettes, and drones have been created;
• The definition of "fabrics laminated with plastics" in customs classification 5903 has been revised to include fabrics laminated with plastic sheets or films, whether or not the plastic is visible to the naked eye in the cross-section. This may have a favorable impact on garments currently classified under HTSUS headings 6113 and 6210 that are made of fabric laminated with plastic;
• Headings 8462 and 7019, which respectively classify metal forming machines and glass fibers, have been amended to reflect technological advances in these areas since the last HS;
• A new customs classification, 8524, was created for flat panel display modules, and a subheading for certain flat panel display products was removed from customs classification heading 8543;
• Finally, the headings of Chapter 15 of the Harmonized Tariff Schedule of the United States were expanded to include microbial fats and oils.

Companies interested in importing into the United States should review the upcoming changes to the HTSUS and assess the impact on the current customs classification of their products with special regard to their products' import duties in America. As for goods produced in China, it is not yet clear whether the U.S. Trade Representative will issue technical amendments that could add any of the new subheadings to the China 301 tariff schedules.