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The topic of tariffs hasn’t been this hot in years. Hardly a day passes without a new development in the ongoing trade conflicts between the United States and its key trading partners. With things changing so quickly, it’s difficult to keep up with everything that’s been going on. To that end, we’ve created this quiz to help you test your knowledge on the state of tariffs today and direct you to where you can find more information. Think you’re up to speed? Put your knowledge to the test.
The (Q2) 2025 U.S. Tariff Quiz
trade disruption
False
B
True
A
True or False: U.S. importers will still have to reckon with tariffs even though the U.S. Court of International Trade (CIT) has ruled the tariffs cannot be imposed using the International Emergencies and Economic Powers Act (IEEPA).
Question 1 of 8
Next question
The CIT’s decision is being contested by the Trump administration and could go all the way to the Supreme Court before a final decision is rendered. Even if the Supreme Court chooses to uphold the CIT’s decision and render illegal the tariffs imposed under IEEPA, tariffs on steel and aluminum, autos and auto parts and goods originating in China will remain in place as they were imposed under different legal statutes.
The correct answer is A.
Nope!
Correct!
True or False: Businesses involved in international trade should check the global directory of restricted parties on quarterly basis to ensure they aren’t directly or indirectly transacting with a restricted party?
Question 3 of 4
There is no global directory of restricted parties. Each country maintains its own list of restricted parties and lists can change on a weekly basis, making it prohibitively difficult for businesses to manually monitor restricted parties.
The correct answer is B.
The President has three mechanisms he can use to impose tariffs against Canada and Mexico without any Congressional approval required. Section 301 of the Trade Act of 1974 allows the president to impose tariffs against countries he believes is engaging in harmful or unfair trade practices that work against the economic interests of the United States. Section 232 of the Trade Expansion Act gives the president authority to impose tariffs on the grounds of national security. The International Economic Emergency Powers Act empowers (IEEPA) the president to manage imports in the event of a national emergency. Given that neither Canada nor Mexico are engaging in unfair trade practices and that the tariffs are anticipated to be applied broadly, it’s unlikely the tariffs will be imposed through Section 301 or Section 232. A more plausible scenario would be using the IEEPA to declare a national emergency in the form of a border crisis. Once the executive order is made, the application of tariffs will be a matter of days, rather than weeks or months.
All of the above
D
It may, in some instances, be applied in place of other tariffs (instead of in addition to)
C
It allows importers to apply for duty drawback
It was imposed under a different legal statute
The recent decision by the Trump administration to double the rate of steel and aluminum tariffs to 50% is different from the original tariff announcement in March because:
Question 2 of 8
In late April, the Trump administration amended its original tariff policies, which applied tariffs in addition to, not in place of, other tariffs. The amendment established a complex regime through which the application of certain tariffs would occur in place of others, significantly reducing duty obligations for importers whose goods were impacted by more than one tariff.
The correct answer is C.
True or False: The implementation of tariffs would require Congressional approval and with some Republican lawmakers reticent about putting tariffs against America’s largest trading partners, it will likely be months before any tariffs are imposed, if ever?
Question 1 of 10
Pay duties to CBP at the time goods reach the border.
Pay duties after the goods have been received by the U.S. importer.
True or False: The “unstacking” amendment made by the White House in relation to tariffs means that importers who had already paid duties on stacked tariffs can apply to have their imports reassessed under the new “unstacked” model.
Question 3 of 8
The amendment issued by the White House allows for importers to apply to recover duties retroactively as far back as March 4, 2024. However, the unstacking amendment does not apply to goods originating in China and therefore no drawback is available for duties paid as a result of IEEPA tariffs imposed on China-origin goods.
When U.S. tariffs are imposed, Canadian and Mexican businesses exporting to the U.S. are required to:
Question 2 of 10
Canadian and Mexican exporters will not be required to pay the customs duties associated with the new U.S. tariffs. These will be paid by the U.S. importers purchasing the goods from Canadian and Mexican exporters. However, the added cost of the tariffs will reduce the price competitiveness of Canadian and Mexican imports, potentially resulting in a loss of business for those exporters.
The correct answer is D.
The change to tariffs applied to China-origin goods means:
Question 4 of 8
While the White House lowered the tariff rate under IEEPA from 145% to 30% for a period of 90 days, the 30% tariff does not replace previously imposed tariffs, such as those under Section 301 of the U.S. Trade Act of 1974 or Section 232 of the Trade Expansion Act of 1962 (e.g., 50% tariff on steel, aluminum and derivatives, 25% tariff on automobiles, auto parts).
Almost all goods traded between the three countries are governed by the USMCA, but the tariffs imposed through executive order will override the USMCA and require duties to be paid for all tariffed goods.
Importers will have to pay a 30% tariff in addition to the original 145% tariff imposed
Importers will have to pay a 30% tariff in addition to some other tariffs on China-origin goods.
Importers will have to pay a 30% tariff in addition to any and all other tariffs applied to China-origin goods.
Importers will now have to pay a 30% tariff that replaces any and all other tariffs applied to China-origin goods.
Applicable as of March 7, but only for goods over $250 in value.
Applicable as of March 4, 2025, but later delayed to an indefinite date to all for a collections process to be established.
Applicable as of March 4, 2025, with duties due for all goods entered as of that date.
Not applicable.
True or False: The change to tariffs applied to China-origin goods means importers of low-value goods (i.e., under $800) will no longer have tariffs applied to their imports.
Question 5 of 8
Low-value goods originating in China or Hong Kong and transported into the U.S. via courier are subject to all applicable duties. Goods entering the U.S. via postal service will be subject to a tariff rate of 90%, or a fee of $75 per package ($150 after June 1, 2025) in instances where the value of the product is not listed). In addition, U.S. Customs and Border Protection (CBP) may, at its discretion, require a formal customs entry for goods entering the U.S. from China or Hong Kong through the international postal network. In the event a formal entry is required, the good will be subject to the standard applicable duties, rather than the aforementioned 90% tariff rate or $75 package fee ($150 after June 1, 2025).
U.S. importers can mitigate the impact of tariffs by:
Question 5 of 10
The imposition of tariffs will likely create a higher level of vigilance amongst customs officers. Improperly classifying or valuing goods can result in subsequent fines and penalties and could result in goods being held at the border until more accurate documentation is in received by customs authorities. Exemptions are a possible, but not guaranteed, form of recourse for U.S. importers that will ultimately depend on what legal mechanism the president uses to impose the tariffs.
None of the above
Can apply for a reduce tariff rate if they can prove the current 25% rate will cause irreparable harm to their business
Can apply for drawback on all duties paid retroactively since the duties were first implemented
Can reduce their duty outlay through a phased application process
Duty relief for automakers introduced in April means automakers:
Question 6 of 8
An April 29, 2025, the U.S. government announced through presidential proclamation an amendment to its previous tariff policy. While tariffs on automobiles and auto parts remain in place, the amendment provides duty relief for automobile parts incorporated into automobiles assembled in the United States through the Import Adjustment Offset or IAO. This is a two-phased approach to duty relief as outline below. Additional information about the IAO can be found here.
None of the above.
Valuing the goods below what they’re actually worth in customs documentation.
Applying to have their products exempted from the tariffs.
Using a different classification code when compiling customs documentation.
True or False: Since tariffs are being applied anyway, there’s no longer any value in using the USMCA.
Question 7 of 8
The USMCA is now more valuable than ever. The free trade agreement exempts importers from having to pay the new 25% tariff, as well as the Most-Favored Nation (MFN) tariffs that were already in place. This makes the cost-savings achievable far greater than they were in the past. As a result, importers who may have previously chosen not to use the USMCA because the tariff rate for their product was too low to make it worthwhile are likely to make consistent use of it.
To improve cashflow when tariffs are applied to imports, businesses can:
Question 6 of 10
Delays in paying customs duties will result in interest charges and customs authorities do not allow for payment in installments. Transshipment is a possibly strategy but would require substantial transformation of the product within the jurisdiction through which the goods are being transported in order for them to qualify as being originating from that jurisdiction. Free Trade Zones on the other hand allow importers to bring product in from other countries into tariff-free manufacturing hubs in the U.S., Canada or Mexico, manufacture those goods (either in whole or in part) and then export them to the next destination. Duties aren’t applied to the goods until they enter the formal commerce of the country. This allows companies to retain capital for investment or other purposes while goods are being produced. There are over 230 FTZs in the U.S., 16 in Canada and 13 in Mexico.
Customs bonds are required by customs agencies to insure the duty outlay for goods moving into a country. In the event tariffs regularly push duty outlays beyond the value of a customs bond, importers would have to:
Question 8 of 8
End Quiz
Customs bonds must account for the total value of duty outlay, which is based on the percentage tariff placed against those imports. Insufficient surety could result in goods being held at the border until duties are paid. Importers whose bonds are of insufficient value to insure the additional duty outlay associated with tariffs will require a more substantial bond.
True or False: Since the tariffs are being imposed by Washington against Canadian and Mexican imports, it is only Canadian and Mexican exporters that are impacted; the countries’ importers won’t be impacted by a trade war?
Question 4 of 10
Tariffs imposed by Washington will almost certainly be met with reciprocal tariffs on U.S. goods by Canada and Mexico. While these tariffs may not be applied universally, they will impact Canadian and Mexican importers of the products on which tariffs are applied.
Do nothing because the bond need only cover the duty outlay associated with the value of the imported product, not the outlay associated with the tariffs.
Pay interest on the amounts exceeding the value of the bond upon entry into the country.
Get a more substantial customs bond to account for the increased duty outlay.
Submitting an application for new classification codes to be introduced with lower tariff rates that apply to a specific import.
Altering the nature of the product so that it will fall under a lower-tariffed classification.
Altering the nature of the import while retaining the same classification regime.
Using classification codes for lower-tariffed goods without altering the nature of the import.
Tariff engineering is a potential way for importers to avoid or reduce duties against certain imports by doing which of the following?
Question 9 of 10
Even though the 25% tariff is being universally applied, importers may still save on duty by avoiding the previously existing tariff rates because products that fall into tariffed categories can sometimes avoid tariffs if they enter the country under a different stage of manufacturing (e.g., a piece of foam and a vinyl strap could be imported separately under different classifications, rather than manufactured together as a flipflop, or vice versa).
Transship product through countries with lower tariff barriers (e.g., move Mexican goods into the U.S. via Nicaragua or Guatemala).
Arrange with customs authorities to make payments in installments.
Shift production through free trade zones (FTZs) to avoid paying import duties until time of export.
Delay paying duties and taxes to customs authorities for 90 days.
True or False - The tariff being imposed on all steel and aluminum imports (irrespective of origin), effective March 12, 2025, does not apply to steel and aluminum from Canada or Mexico, because goods originating from those countries were already hit with a 25% tariff on all goods (including aluminum and steel) effective March 4, 2025.
Question 10 of 10
The steel and aluminum tariffs are being imposed in addition to (not in place of) existing tariffs. As such, the tariff rate on steel and aluminum originating in Canada or Mexico is 25% plus 25%. In the event importers can demonstrate the steel and/or aluminum meets the rules of origin under the USMCA, they may be exempt from the 25% tariff applied universally to all goods originating in Canada and Mexico, but not to steel and aluminum tariff imposed on March 12.
True or False: Given that trade between the U.S., Canada and Mexico is governed by the United States-Mexico-Canada Agreement (USMCA), a free trade agreement, tariffs will only apply to those goods that are not included in the trade agreement. Goods that are included within the agreement will continue to be traded with duty-free status.
Question 3 of 10
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