On July 7, 2025, the White House issued an Executive Order Extending the Modification of the Reciprocal Tariff Rates. The order extends the pause on implementing higher reciprocal rates on 56 countries and economies (excluding China & Hong Kong), retaining the 10% baseline reciprocal rate through July 31, 2025. The higher reciprocal tariffs listed in Annex I were scheduled to go into effect on July 9 following a 90-day pause. This extension gives U.S. importers just over three weeks to enter goods into the U.S. commerce at the lower 10% reciprocal rate.
“I have determined, based on additional information and recommendations from various senior officials, including information on the status of discussions with trading partners, that it is necessary and appropriate to extend the suspension effectuated by Executive Order 14266 until 12:01 a.m. eastern daylight time on August 1, 2025.” – President Trump
In other related news, President Trump sent out letters to 14 countries informing them of their new reciprocal rate effective August 1, unless “companies within their country decide to build or manufacture product within the U.S.”
The template letters (see below for the letter to Japan) make a note of, “goods transshipped to evade a higher tariff will be subject to that higher tariff,” and “if you decide to raise your tariffs, then, whatever the number you choose to raise them by, will be added onto the new rate.”
Overall, the new rates are similar to the original Annex I rates. More letters may be sent out in the coming days and weeks.
Country
New Rate
% Change
Bangladesh
35%
-2%
Bosnia & Herzegovina
30%
-5%
Cambodia
36%
-13%
Indonesia
32%
0
Japan
25%
1%
Kazakhstan
25%
2%
Korea
25%
0
Laos
40%
-8%
Malaysia
25%
1%
Myanmar
40%
-4%
Serbia
35%
-2%
South Africa
30%
0
Thailand
36%
0
Tunisia
25%
-3%
Exception Countries
China / Hong Kong
The higher reciprocal tariffs for products of China and Hong Kong are excluded from the August 1 implementation date. Currently, China and Hong Kong products will face a higher duty rate on August 12 unless public notice is issued stating otherwise.
