New Higher Reciprocal Tariffs Start Aug 7

On July 31, 2025, the White House released an Executive Order, Further Modifying the Reciprocal Tariff Rates, suspending the higher reciprocal tariffs through August 6 and issuing a new, more robust Annex I (see below) that takes effect on August 7. A Fact Sheet is also available.

Countries not listed on the new Annex I will continue to be assessed the 10% baseline tariff, unless otherwise expressly provided. This order does not modify the Reciprocal Tariff on China (including Hong Kong and Macau).

Details

What changed?

• The new Annex I includes more countries than the April 2 version.
• Many countries have a designated rate of 15%.
• Some countries will face an increased rate. Ten countries will be subject to a rate of 30% or higher, with the highest designated rates of 39% Switzerland, 40% Laos and Myanmar, 41% for products from Syria.
• Annex II includes the modifications to the Harmonized Tariff Scheduled of the United States (HTSUS).

Effective Date

The tariff rates listed in the new Annex I shall be effective with respect to goods entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. eastern daylight time on August 7, 2025.

Exception

• In-transit Goods: 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of transit before 12:01 a.m. eastern daylight time 7 days after the date of this order, and entered for consumption, or withdrawn from warehouse for consumption, before 12:01 a.m. eastern daylight time on October 5, 2025, shall not be subject to such additional duty and shall instead remain subject to the additional ad valorem duties previously imposed in Executive Order 14257, as amended.

European Union Rate

• EU products will be subject to a total tariff rate of at least 15% [General rate of duty + Reciprocal tariff]
• Goods with a General Rate of Duty under 15%, the sum of its general rate of duty and additional ad valorem rate of duty for reciprocal tariff shall be 15%.
• Goods with a General Rate of Duty of at least 15%, the additional ad valorem rate of duty pursuant to this order shall be zero.

Miscellaneous

• Transshipment:
  • (a)  An article determined by CBP to have been transshipped to evade applicable duties under section 2 of this order shall be subject to (i) an additional ad valorem rate of duty of 40 percent, in lieu of the additional ad valorem rate of duty applicable under section 2 of this order to goods of the country of origin, (ii) any other applicable or appropriate fine or penalty, including those assessed under 19 U.S.C. 1592, and (iii) any other United States duties, fees, taxes, exactions, or charges applicable to goods of the country of origin.  CBP shall not allow, consistent with applicable law, for mitigation or remission of the penalties assessed on imports found to be transshipped to evade applicable duties.
  • (b)  The Secretary of Commerce and the Secretary of Homeland Security, acting through the Commissioner of CBP, in consultation with the United States Trade Representative, shall publish every 6 months a list of countries and specific facilities used in circumvention schemes, to inform public procurement, national security reviews, and commercial due diligence.

ANNEX I

Have Questions? Contact your local NNR Representative.

We will continue to monitor this tariff action and provide updates as they become available.