Industry News
U.S. Imposes Adjusted Reciprocal Tariffs
August 1, 2025
President Donald J. Trump has issued a new Executive Order modifying tariffs under the International Emergency Economic Powers Act (IEEPA) and Executive Order 14257, in response to persistent trade imbalances and national security risks. The updated order imposes reciprocal ad valorem tariffs on a wide list of countries and enforces stricter measures to address non-cooperation, trade circumvention, and retaliation.
Effective Date
The revised tariffs will take effect 7 days after the order’s issuance (August 7, 2025), with some exceptions for goods already in transit. The tariffs apply to goods entered for consumption on or after 12:01 a.m. EDT, August 7, 2025, unless already in transit prior to that time.
In-Transit Exemption
An in-transit exemption allowing goods to be entered under the 10% rate if loaded onto the vessel at the port of loading and in transit on the final mode of transit before 12:01 a.m. EDT August 8th AND entered before Oct 5th.
Key Updates
- New Tariff Structure
- Countries are assigned adjusted ad valorem tariffs based on trade reciprocity, ranging from 10% to 41%, with specific rates listed in Annex I.
- European Union
- Goods with existing U.S. duty rates below 15% will have their rate raised to a combined 15%.
- Goods already above 15% will not face additional duties.
- General Tariff Rules
- Countries not listed in Annex I will default to a 10% ad valorem duty unless otherwise stated.
- Annex II modifies the Harmonized Tariff Schedule (HTSUS) to reflect new country-specific headings and rates.
Transshipment Enforcement
To prevent circumvention of the new tariffs, goods found to be transshipped to evade duties will face 40% ad valorem tariff in addition to penalties and fines under the U.S. law and no elibigility for penalty mitigation. CBP will also publish semi-annual lists of facilities and countries involved in evasion schemes.
To view the full Executive Order, visit: Presidential Actions - whitehouse.gov
|
Countries and Territories Listed under Annex I |
Reciprocal Tariff, Adjusted |
|
Afghanistan |
15% |
|
Algeria |
30% |
|
Angola |
15% |
|
Bangladesh |
20% |
|
Bolivia |
15% |
|
Bosnia and Herzegovina |
30% |
|
Botswana |
15% |
|
Brazil |
10% |
|
Brunei |
25% |
|
Cambodia |
19% |
|
Cameroon |
15% |
|
Chad |
15% |
|
Costa Rica |
15% |
|
Côte d`Ivoire |
15% |
|
Democratic Republic of the Congo |
15% |
|
Ecuador |
15% |
|
Equatorial Guinea |
15% |
|
European Union: Goods with Column 1 Duty Rate > 15% |
0% |
|
European Union: Goods with Column 1 Duty Rate < 15% |
15% minus Column 1 Duty Rate |
|
Falkland Islands |
10% |
|
Fiji |
15% |
|
Ghana |
15% |
|
Guyana |
15% |
|
Iceland |
15% |
|
India |
25% |
|
Indonesia |
19% |
|
Iraq |
35% |
|
Israel |
15% |
|
Japan |
15% |
|
Jordan |
15% |
|
Kazakhstan |
25% |
|
Laos |
40% |
|
Lesotho |
15% |
|
Libya |
30% |
|
Liechtenstein |
15% |
|
Madagascar |
15% |
|
Malawi |
15% |
|
Malaysia |
19% |
|
Mauritius |
15% |
|
Moldova |
25% |
|
Mozambique |
15% |
|
Myanmar (Burma) |
40% |
|
Namibia |
15% |
|
Nauru |
15% |
|
New Zealand |
15% |
|
Nicaragua |
18% |
|
Nigeria |
15% |
|
North Macedonia |
15% |
|
Norway |
15% |
|
Pakistan |
19% |
|
Papua New Guinea |
15% |
|
Philippines |
19% |
|
Serbia |
35% |
|
South Africa |
30% |
|
South Korea |
15% |
|
Sri Lanka |
20% |
|
Switzerland |
39% |
|
Syria |
41% |
|
Taiwan |
20% |
|
Thailand |
19% |
|
Trinidad and Tobago |
15% |
|
Tunisia |
25% |
|
Turkey |
15% |
|
Uganda |
15% |
|
United Kingdom |
10% |
|
Vanuatu |
15% |
|
Venezuela |
15% |
|
Vietnam |
20% |
|
Zambia |
15% |
|
Zimbabwe |
15% |
To View Annex II Information, visit Whitehouse.gov - Annex II