An Overview of the 2025 Tariffs.
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Update: On Wednesday, April 9, the Trump administration announced that they would be pausing tariffs on most countries, but increase tariffs on goods from China to 125%, according to media reports.
On April 2, 2025, the White House announced the imposition of "reciprocal tariffs" under the International Economic Emergency Powers Act (IEEPA) to address the "national emergency posed by the large and persistent trade deficit" and the "absence of reciprocity" in U.S. trade relationships. The April tariffs impose a baseline 10% tariff on goods from all countries starting April 5, 2025, and higher rates (11% to 50%) for 57 specific countries starting April 9, 2025. Non-compliant goods carry a 25 percent tariff. The April 2 reciprocal tariffs were imposed on top of the tariffs issued in February.
Books Are Exempt
Because the Trump tariffs were imposed under the IEEPA, “informational materials,” which includes books, are exempt. So there will be no additional tariffs on books sourced from any country, other than those which already existed.
Moreover, as of the current date, goods from Canada and Mexico that are compliant with the United States-Mexico-Canada Agreement (USMCA) are not currently subject to the new reciprocal tariffs. As such, paper that is wholly grown, produced, or manufactured in Canada, Mexico, or the U.S. is USMCA compliant and not subject to new reciprocal tariffs.
There were already tariffs on some types of books coming from China – and those still remain in place. (See China below.)
Production Costs Could Increase Domestic Book Prices
It is likely that tariffs will increase the price of books and shipping, mainly because of how they could impact the cost of producing books (imported paper and ink except Canada and Mexico if USMCA-compliant) and possible increases in fuel prices. Much will depend on how publishers and suppliers respond to the tariffs–where they source paper and ink and other items to produce books. That said, even small input cost increases might nudge book prices up 5%-10%. Inflation from broader tariff impacts could amplify this; and some economists project tariffs could cost the average household $3,800 per year according to an analysis by Yale University, and will impact low-income households the hardest. This, of course, would likely shrink consumer spending on books.
Tariffs by Country: Existing and New
Two executive orders imposed tariffs, both citing IEEPA (and thus excluding books). The first implemented tariffs in February, which remained when reciprocal tariffs were added on April 2. Depending on where they are produced and imported from, some goods that are not exempted from the tariffs, like sidelines and other non-book merchandise, may see the impact of both sets of tariffs, leading to significant markups. As noted above, however, Trump announced a 90-day pause on tariffs from most countries, instead implementing a universal 10% tariff on most countries other than China, which now has a tariff of 125%.
Tariffs by Country: Existing and New
Two executive orders imposed tariffs, both citing IEEPA (and thus excluding books). The first implemented tariffs in February, which remained when reciprocal tariffs were added on April 2. Depending on where they are produced and imported from, some goods that are not exempted from the tariffs, like sidelines and other non-book merchandise, may see the impact of both sets of tariffs, leading to significant markups. As noted above, however, Trump announced a 90-day pause on tariffs from most countries, instead implementing a universal 10% tariff on most countries other than China, which now has a tariff of 125%.
China, Canada, and Mexico: The February tariffs remain in effect and are unaffected by the April 2 reciprocal tariff order. This means that the specific exception for information and informational materials, including books, continues to apply for imports of these goods from these three countries.
Books from All Other Countries: Under the April 2 reciprocal tariff, which is again was imposed under IEEPA, books from all other countries are excepted from the new reciprocal tariffs. Assuming the latest 125% tariff on China was enacted under IEEPA, books would still be exempt, though books would still be subject to the Section 301 tariffs implemented in 2018 (see China, below).
Canada and Mexico Special Treatment: Goods from Canada and Mexico are not currently subject to the reciprocal tariffs. Instead, only the February tariffs apply. Accordingly, USMCA-compliant goods (goods that are wholly grown, produced or manufactured in Mexico or Canada) will continue to see a 0% tariff, while under the pause order, it is assumed that non-USMCA compliant goods will see a 10% tariff (25% if and when the pause is lifted), and non-USMCA compliant energy and potash will see a 10% tariff.
If Trump removes the pause order, it is important to note the following: Additionally, Canada and Mexico are not among the fifty-seven target countries listed in Annex I to be subject to individualized reciprocal tariff rates. In the event the February tariffs (and the pause is lifted) for Canada and Mexico are terminated, USMCA-compliant goods would continue to receive preferential treatment (i.e., not subject to the April 2 reciprocal tariffs), while non-USMCA compliant goods would be subject to a 12% reciprocal tariff. However, because the reciprocal tariffs were imposed under the IEEPA, the 12% reciprocal tariff would not apply to books or other informational materials.
China Only: The 145% tariff announced Wednesday, April 9, if it was enacted under IEEPA (as of this writing, we are awaiting confirmation of this fact, though it is likely), will not apply to printed books. Importantly, however, the reciprocal tariff does not modify the existing Section 301 China tariff rates or any normal rates. As such, the 7.5% tariff from 2018 remains in place. (In other words, there are tariffs on books except for excepted Bibles and other religious books, and the suspended tariffs on children’s picture, drawing, or coloring books. These were previously exempted.) On April 11, China responded to Trump's tariffs by imposing a 125% tariff on U.S. goods coming into China.
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Baseline Tariff: A 10% minimum or baseline tariff is imposed on all imported articles from all countries. This went into effect on April 5. This baseline remains in effect based on media reports as a universal tariff under the pause order.
Reciprocal Tariffs: If and when the pause order is lifted, the baseline tariff shall initially apply but will subsequently be increased to new individualized (or country specific) reciprocal tariff rates that will be charged on imports from the fifty-seven target trading partner countries listed in Annex-I of the EO, with which the U.S. reportedly has the “largest trade deficits.”
Cumulative Nature of Tariffs: The reciprocal tariffs are on top of other applicable tariffs, such as the Section 301 China tariffs and other existing customs duties.
Exemptions: Certain goods (see Annex-II) will not be subject to the reciprocal tariffs.
Impacts on Publishing and Bookstores
Paper, Pulp, and Ink: These items do not qualify for the IEEPA exception, but the actual tariff rate will vary depending on the country of origin. There is the 10% baseline tariff for all countries, but as noted before, there is special treatment for those items if they come from Canada and Mexico and are USMCA-compliant. Existing Section 301 tariffs from China also apply.
Increased Shipping Costs: While experts don’t expect dramatic fuel increases, it is possible they will spike if the tariffs spark inflation or an escalation of trade wars.
Rising Costs for Paper and Printing Materials: Paper imported from countries like China (125% tariff) and the EU (now 10%, but would be a 20% tariff if and when the pause order is lifted) will see cost increases.
Increased Book Production Costs: The 125% tariff on Chinese imports will almost certainly increase production costs for books. Domestic printing in the U.S. is more expensive due to labor and facility costs.
Impact on International Sales: U.S. publishers exporting books may face retaliatory tariffs
from other countries, such as China and the EU, potentially reducing export revenue.
Small Publishers Hit Hardest: Small publishers, reliant on imported materials or overseas printing, may struggle to absorb increased costs compared to larger publishers.
Coffee
Coffee from Canada and Mexico, if USMCA-compliant, faces no direct tariff hit. Though no formal list of countries included in the pause has been released yet, if the pause is lifted, coffee from other countries faces substantial tariffs, such as 10% for Brazil and Colombia, 46% for Vietnam, and 32% for Indonesia.The U.S.'s limited domestic coffee production means it cannot offset these costs.
Sidelines
Sidelines from Canada and Mexico that comply with the USMCA agreement face a 0% tariff under existing orders. Non-compliant items from these countries have a 10% baseline tariff (which would be a 25% tariff if the pause is lifted), and potential future tariffs could increase costs slightly.
Sidelines from other countries, particularly those from China and any nation with higher not included in the universal 10% rate, will be more significantly impacted. These tariffs could range from 10% to 125% (e.g., the new China tariff), leading to price increases for items like toys and gifts. These tariffs could reduce profit margins for bookstores or force them to increase prices, potentially affecting sales.
mpact on Exports/International Shipping
Many countries have imposed retaliatory tariffs on U.S. goods, including books, in response to Trump’s tariffs. These retaliatory tariffs could increase costs and potentially reduce demand. In addition, shipping costs may increase due to trade disruptions.
Tariffs by country:
- Canada: 25% on U.S. goods, though books are currently excluded.
- China: 145% tariff on all U.S. goods, including books.
- Australia and Singapore: There are no tariffs on U.S. books due to an existing Free Trade Agreement, though it is possible they may retaliate against Trump’s new tariffs.
- UK: There is a 10% baseline tariff on U.S. goods. There is a potential for retaliatory tariffs.
- European Union: On April 9, the EU imposed counter-tariffs of up to 25% on certain U.S. goods. At last report, books were not included, but the final list of impacted goods is not yet public. The Washington Post is reporting textiles are included, which may impact some clothing sales.
What Happens to Items Ordered Before the Tariffs Were Imposed?
Tariffs are imposed on goods based on when those items enter the U.S., not when they are ordered. There are exceptions, however: Goods loaded and in transit before April 5, 2025, and arriving by May 27, 2025, are exempt from the new reciprocal tariffs. Goods that arrive after May 27, 2025, will likely face the new tariffs, even if ordered prior to April 5.
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Binish Eshtiaq
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