On Wednesday, April 2, 2025 the White House announced a national emergency regarding foreign trade and economic practices stemming from trade deficits with other countries. The White House is establishing a 10% tariff on all countries with additional reciprocal tariffs going into effect on countries “with which the United States has the largest trade deficits”. The 10% tariff will go into effect on April 5 and the additional tariffs will go into effect on April 9. A White House fact sheet lists the following exemptions to the reciprocal tariffs:
- Articles subject to 50 USC 1702(b)
- Steel/Aluminum Articles subject to Section 232 Tariffs
- Copper, Pharmaceuticals, Semiconductors and Lumber articles
- All articles subject to future 232 tariffs
- Bullion
- Energy and Minerals that are unavailable domestically
To view a list of the reciprocal tariffs by country, click here.
For vendors that have pricing impacted by the newly announced tariffs and the separate tariffs with Canada and Mexico, modifying your GSA Schedule contract to increase pricing is an available remedy. All GSA Schedule contracts contain an Economic Price Adjustment clause in the contract. Note without an approved modification higher GSA prices cannot be passed on to the GSA Schedule customer, if customers are given higher GSA pricing without approval this would be considered an overcharge by GSA and become a contract compliance concern.
In order for GSA to consider granting a price increase modification the contracting officers/specialists (CO/CS) will need to see that the new higher pricing is being passed onto commercial or non-GSA customers first. GSA may also want to see invoices showing that the higher pricing has been passed onto the commercial or non-GSA customers.
Reach out to your TGG consultant who will assist you in this process or contact TGG at 202-833-1120 or info@gormgroup.com.