New Tariff Measures Announced: What TNLA Members Need to Know

On April 2, 2025, new U.S. trade measures were announced that represent a major shift in federal tariff policy—with broad implications for the horticulture and landscape industries.

Before diving into the specifics, here’s a quick refresher:

What Is a Tariff?
A tariff is a tax placed on goods imported into a country. It’s designed to make foreign products more expensive, either to encourage consumers to buy domestically or to apply pressure in trade negotiations.

Example:
If your business imports $100,000 worth of garden tools from Italy and a 10% tariff applies, you would owe $10,000 in duties—bringing the total cost to $110,000.

Who Pays for Tariffs?While tariffs are technically paid by importers at the border, the costs often get passed down the supply chain:

• Importers may raise prices to offset the cost
• Distributors and retailers may adjust pricing
• Ultimately, consumers and other businesses feel the impact

Key Changes TNLA Members Should Know

🔹 10% Blanket Tariff on All Imports
Effective April 5, 2025, a 10% tariff will apply to all goods entering the U.S., regardless of country of origin. This is one of the most sweeping tariff measures in recent history.

🔹 Reciprocal Tariffs Begin April 9A second round of tariffs will target goods from countries that impose barriers on U.S. exports. These “reciprocal” tariffs will vary by country and industry.

Exemptions include:

• Items under national emergency provisions (50 U.S.C. 1702(b))
• Steel, aluminum, and autos already under Section 232
• Copper, lumber, semiconductors, and pharmaceuticals
• Energy and critical minerals not produced in the U.S.
• Bullion (precious metals)

These tariffs will remain until the administration determines that U.S. trade imbalances and unfair practices have been addressed.

🔹 Canada & Mexico
Impacts are limited for now under active IEEPA orders related to migration and fentanyl:

• USMCA-compliant goods: 0% tariff
• Non-USMCA-compliant goods: 25% tariff
• Non-USMCA energy and potash: 10% tariff

If these orders are lifted in the future, non-USMCA goods will be subject to a 12% reciprocal tariff.

🔹 End of Duty-Free Imports from China & Hong Kong
The de minimis rule currently allows duty-free shipments under $800. That exemption ends soon:

• May 2, 2025: $25 or 30% per item (whichever is higher)
• June 1, 2025: $50 per item

This change will significantly impact small package imports and e-commerce.

🔹 Auto & Auto Parts Tariffs
A 25% tariff on imported cars takes effect April 3, 2025.

​A separate tariff on imported auto parts will follow no later than May 3, 2025.

Parts that meet USMCA requirements are initially excluded. However, the Commerce Department will soon introduce a system to assess which components count as “non-U.S.” for tariff purposes.

What TNLA Members Should Do Now
If your business relies on imported goods—such as pots, fertilizer, hand tools, or machinery—it’s important to take proactive steps:

• Review your supply chains
• Talk with vendors about possible alternatives
• Evaluate potential cost increases
• Watch for evolving updates

While some of these tariffs may be temporary, the financial impact could be long-lasting.

Why Labor Access Matters More Than Ever
These new tariffs will likely increase your cost of doing business. That’s why labor policy must be part of the conversation. A reliable, legal workforce—especially through programs like H-2A and H-2B—is critical to absorbing financial pressure and staying competitive.

Tariffs and workforce access go hand in hand.
In a more expensive global marketplace, stability and productivity at home are non-negotiable.

TNLA will continue to monitor these changes and advocate for solutions that protect and support your business.
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Stay tuned for updates.