US reciprocal and current tariffs: Potential impact for the Technology, Media, and Telecommunications industry

In brief

The Trump administration’s implementation of “reciprocal tariffs” continues to be dynamic, prompting a challenging trade landscape for many multinational companies. The President signed an executive order on April 2, made announcements, and released memoranda on this matter. In summary, the new tariffs in place as of the date of this Insight include the following (this list does not reflect all previously existing tariffs):

• A 10% base tariff on most imported goods (with the exception of certain exempt goods included in Annex II of the April 2 executive order such as smartphones, computers, other electronic devices, and semiconductors) from all countries (except Canada, Mexico, and China). 
• Adjusted country-specific tariffs of up to 50% (with certain exceptions as noted above), however, a 90-day pause (ending July 9) is in place for the adjusted country-specific tariffs to allow time for individual country trade negotiations. The exempted goods are expected to be addressed in separate forthcoming executive orders on tariffs, and the US Department of Commerce has initiated a Section 232 investigation to assess their impact on national security. The comment period closed on May 7 and the expectation is that implementation of specific tariffs on semiconductors and semiconductor manufacturing equipment will be accelerated well before the 270-day requirement.
• All goods from Canada and Mexico that do not qualify as originating under the United States-Mexico-Canada Agreement (USMCA) remain subject to earlier 25% tariffs. Duty free status under the agreement remains for those goods that qualify. Certain imports from Canada currently are subject to a lower additional ad valorem duty of 10%. The April 2 executive order specifies that upon the termination or suspension of the earlier orders specific to Canada and Mexico, the 25% tariff will revert to a 12% reciprocal tariff rate.
• On April 3, a 25% tariff was imposed on foreign-manufactured automobiles. Tariffs on certain automotive parts were set to be enforced no later than May 3; however, on April 29 President Trump signed an executive order easing certain tariffs on automobiles and auto parts to provide relief to US automakers impacted by recent trade policies. While the 25% tariff on imported automobiles remains in effect, the order eliminates stacking tariffs (see US Customs and Border Protection (USCBP) tariff requirements released May 2). Stacking rules as applied to the auto industry are an area the trade community continues to monitor.
• Tariffs on Chinese imports of 125% have been implemented (up to 145% with existing tariffs included). The elimination of the de minimis exemption for low-value imports from China and Hong Kong went into effect May 2.
• On May 4, President Trump announced the imposition of a 100% tariff on movies produced outside the United States to address the declining movie industry due to incentives from other countries to produce outside the United States.

A wider industry perspective can be found in PwC’s US Tariff Industry Analysis Tax Insight published on April 22 and additional information can be found in the USCBP tariff requirements. The administration recently noted that more than 100 countries wish to negotiate trade imbalances with a drive towards an economic level playing field and fair-trading system. As of the date of this Insight, no change in previously noted rates has been announced.

The administration’s trade policies are prompting significant implications for companies operating in or trading with the United States, including companies within the Technology, Media, and Telecommunications (TMT) industry. Many TMT companies currently utilize offshore operations within their global footprint and supply chains, particularly with respect to China. PwC’s Industry Analysis data reflects that the total tariff measures could increase from $13 billion to nearly $324 billion per year (with the implied average tariff rate increasing from 2% to 44% on US imports), although that figure does not take into account countermeasures that trading partners may impose, or behavioral adjustments that companies may make, in reaction to US policy changes.

This Tax Insight serves as an update to our March 17 Industry Analysis, which previously included forecasted reciprocal tariff rates at that time. Note: PwC’s updated Industry Analysis utilizes the tariffs that have been implemented by the United States as of April 15 (based on guidance and specific factors explained in the next section) as well as potential tariffs on so-called Annex II products. 

Multinational companies around the world, including companies within the TMT industry, should proactively assess the impact of these trade policies on their global business footprints — with respect to both imports and exports — as well as the potential related opportunities. A data-driven approach is critical — companies can conduct detailed impact analyses using advanced tools, ERP data, and US customs data to quantify tariff exposure at the SKU or component level, often uncovering unexpected risk concentrations. To translate these insights into action, companies should form cross-functional task forces that align procurement, supply chain, tax, and finance teams to explore sourcing alternatives, re-routing strategies, and local manufacturing options.

TMT companies should stay proactive by prioritizing supply chain transformation as a first step in navigating growing tariff exposure. Taking early action can offer meaningful first-mover advantages — not only by reducing financial and operational risk ahead of peers, but also by reinforcing a constructive posture with the administration, which may influence future trade engagement and tariff considerations. A tiered mitigation strategy (i.e., short, medium, and long-term strategies) remains essential. This approach can help companies identify “no-regret” moves — such as renegotiating supplier terms or revisiting customs classifications — that can yield quick wins with minimal disruption. Embedding tariff sensitivity into product design, pricing, and expansion decisions can help provide greater flexibility as trade dynamics continue to evolve.

For more details, read the full Tax Insight linked below.