CAWG Members,

Today, during a ‘Make America Wealthy Again’ press conference in the Rose Garden of the White House, President Donald Trump signed an Executive Order (“EO”) implementing widespread reciprocal tariffs around the world.

During what has been referred to as “Liberation Day” by the administration, President Trump criticized foreign nations for repeatedly taking advantage of the U.S. and messaged on delivering prosperity to American workers and industries through leveling the trade playing field. Using the International Emergency Economic Powers Act of 1977 (IEEPA), President Trump declared a national economic emergency over U.S. trade deficits, giving him the legal authority to regulate imports.

Taking effect beginning April 5, 2025, the U.S. will impose a 10% baseline tariff on imports from all countries. Additionally, President Trump has imposed individualized reciprocal tariffs at higher rates on approximately 60 countries with which the U.S. has the largest trade deficits. Pursuant to White House guidance, it is assumed that the difference between the individualized rate and the standard 10% rate will separately go into effect on April 9.

While speaking, President Trump held up a chart detailing the new tariff rates:

• 34% on imports from China
• 20% on imports from the European Union
• 25% on imports from South Korea
• 24% on imports from Japan
• 32% on imports from Taiwan
• And so on, see the full list here.

Currently, the Administration has expressed that these tariffs will remain in place until such a time that President Trump deems the threat posed by the current trade deficit and underlying nonreciprocal treatment is satisfied, resolved, or mitigated.

Takeaways:

• Potential Exemptions: Some products, such as certain metals, pharmaceuticals, and essential minerals, are exempt; however, agricultural products are not explicitly mentioned in the exemptions.
• Canada and Mexico Exemptions: These countries will not be subject to the 10% baseline tariff for now. The tariff will only apply after the existing 25% duties on Canadian and Mexican imports are lifted or suspended.

While the administration has promised that this policy will usher in a "Golden Age of America" by boosting jobs and domestic production, the specific implications for California’s winegrape remain uncertain.

CAWG will continue to monitor the situation and advocate for policies that protect California winegrape growers, while also promoting their vital contributions to communities and the economy.

Please reach out with any concerns or insights as to how these tariffs may impact your operations.