Tariff developments continue to affect Iowa companies, and staying informed is key to protecting your operations. CIRAS is here to help you understand the latest shifts and make proactive decisions.
In our May 16 morning update, Marc Schneider, CIRAS Supply Chain Lead, shared the following insights:
- Steel and aluminum tariffs are in effect as of March 12, with exemptions eliminated and aluminum rates increased from 10% to 25%.
- Automobile tariffs began April 3 on finished vehicles, with auto part tariffs implemented May 3. Vehicles under USMCA may be exempt, and U.S.-assembled cars may qualify for duty credits on parts (excluding those from China).
- Reciprocal tariffs of 10% took effect April 5. Further increases were paused for 90 days beginning April 9 to allow for negotiations. Key exemptions include pharmaceuticals, semiconductors, copper, critical minerals, lumber, and energy products.
- U.S.–China tariff escalation has paused for 90 days. Tariffs were reduced from 145% to 30%, and China has eased retaliatory measures and non-tariff barriers. However, core U.S. tariffs, including Section 301 and steel, remain in place.
- New U.S.–UK trade deal includes a U.S. reduction of tariffs on UK auto imports and a path toward eliminating steel and aluminum duties. In return, the UK will remove tariffs on U.S. ethanol and expand access for American goods.
What Iowa companies may want to consider:
- Reassess sourcing strategies and tariff exposure.
- Treat tariff-related cost changes as temporary surcharges, not permanent price shifts.
- Use a 1/3 cost-sharing model: supplier, company, and customer each absorb part of the impact.
- Watch for freight volatility, inventory fluctuations, and supplier shifts as the market reacts.
- Be prepared for the potential reinstatement of higher tariffs in mid-July if negotiations stall.
Visit our tariff channel to view the full recording and access previous updates for additional context. You can also explore our website for more resources and insights.
At CIRAS, we specialize in helping Iowa companies assess risk, build stronger supply chains, and plan with confidence—even during uncertainty. Contact us today to learn how CIRAS can support your company.
For more information, contact Marc Schneider at maschn@iastate.edu.