Posted originally on Apr 4, 2025 by Martin Armstrong 

I have said on various podcasts that a 10% tariff is really a tariff. Beyond that, it is political to force free trade. Most countries are dropping tariffs on US goods, creating what Trump actually was trying to create – FREE TRADE. The beligerent one is, of course, France. Macron has a Napoleon Complex, which is why he has been pushing for war, offering nukes to Germany, and trying to supplant the United States as the savior of Europe, being the 3rd largest nuclear power.

“The tariffs give us great power to negotiate. They always have,” Trump told reporters Thursday aboard Air Force One a day after his Rose Garden “Liberation Day” tariff announcement sunk the market to its lowest point since the COVID-19 pandemic.

I have received many inquiries about the US Reciprocal Tariffs announced on April 2, 2025. The justification for these tariffs can be found in President Trump’s Executive Order, which may be found here. I am not an expert in tariff law. Nonetheless, parts of the Executive Order are open to interpretation by experts, and the end result remains fluid from one day to the next right now. Therefore, it is important to consult with a customs broker before importing or exporting to the US. It is always a matter of interpretation.

Macron is beligerant and, like Carney in Canada and Democrats in the USA, whatever Trump does, he must do the opposite. Macron, according to sources, is urging fill retaliation against the Trump that the EU should block all US goods and push for capital controls to prevent money from flowing to the US. He already uses non-tariffs pretending it to be “quality” control outright blocking some products.

However, Macron is also pushing for war with Russia, offering Germany nukes to replace the US as the savior of Europe. He thinks war will elevate France to the leadership of Europe because of its nukes. Macron has always had a problem with sparkling wines in California being labelled Champagne. The French reinterpreted the label “Champagne” to be the origin rather than how it is produced. Champagne, made in France, is produced using the méthode champenoise. If that bottle is produced using the exact same method, anywhere else, it must carry a different name, but that was part of the Treaty after World War II, and it was meant to punish Germany. But the US never ratified that treaty, so it never applied to the United States.

Sparkling wines have been produced in California since about 1860, and they were introduced by European immigrants, including those from France. Since then, the term Champagne has been used to refer to the type of wine, not where it was made. Here is an advertisement from 1866 offering North American-produced Champagne. Macron does not care how it is made; he wants to redefine the word “Champagne” to mean France as the area where it is produced rather than the type. This is just an example of dealing with the EU.

First, keep in mind that these tariffs, broad as they are, are being levied under the President’s “Emergency Powers.” This means that the usual statutory exemptions for antiques and other collectibles, which are referenced in the HTS Codes, may not seem to apply, depending on who does the interpretation. Does this executive order overrule the statutory exemptions covering antiquities when, in fact, the purpose of the tariffs focuses on currently manufactured goods, not antiquities of more than 100 years old?

While executive orders are powerful tools for presidential action, they cannot override statutes. In cases of conflict, statutes prevail unless the executive order operates within constitutional or delegated authority. Courts serve as the ultimate arbiter, ensuring adherence to the separation of powers.

So what does it mean for antiquities? According to Section 2 of the Executive Order,

The additional ad valorem duty on all imports from all trading partners shall start at 10 percent, and shortly thereafter, the additional ad valorem duty shall increase for trading partners enumerated in Annex I to this order at the rates set forth in Annex I to this order. These additional ad valorem duties shall apply until I determine that the underlying conditions described above are satisfied, resolved, or mitigated. However, since an executive order cannot act unconstitutionally, it should not be interpreted as overruling a valid statute defining the exemption.

Moreover, according to Section 3,

a ) Except as otherwise provided in this order, all articles imported into the customs territory of the United States shall be, consistent with law, subject to an additional ad valorem rate of duty of 10 percent. Such rates of duty shall apply with respect to goods entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. eastern daylight time on April 5, 2025, except that goods loaded onto a vessel at the port of loading and in transit on the final mode of transit before 12:01 a.m. eastern daylight time on April 5, 2025, and entered for consumption or withdrawn from warehouse for consumption after 12:01 a.m. eastern daylight time on April 5, 2025, shall not be subject to such additional duty.

Furthermore, except as otherwise provided in this order, at 12:01 a.m. eastern daylight time on April 9, 2025, all articles from trading partners enumerated in Annex I to this order imported into the customs territory of the United States shall be, consistent with law, subject to the country-specific ad valorem rates of duty specified in Annex I to this order. Such rates of duty shall apply with respect to goods entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. eastern daylight time on April 9, 2025, except that goods loaded onto a vessel at the port of loading and in transit on the final mode of transit before 12:01 a.m. eastern daylight time on April 9, 2025, and entered for consumption or withdrawn from warehouse for consumption after 12:01 a.m. eastern daylight time on April 9, 2025, shall not be subject to these country-specific ad valorem rates of duty set forth in Annex I to this order. These country-specific ad valorem rates of duty shall apply to all articles imported pursuant to the terms of all existing U.S. trade agreements, except as provided below.

Therefore, under Section 3 (b) (v) of the Executive Order, it is suggested that things like antiquities should be exempt under the Executive Order because they are generally exempt from tariffs under the Harmonized Tariff schedule. Furthermore, there is a statutory exemption for “informational” materials under 15 USC 1702(b). While this certainly applies to artwork and our reports, informational materials are exempt. Additionally, I should note that, for the time being at least, there is a separate exemption for low-value shipments under $800 under 19 USC 1321, which an executive order cannot nullify.