| An Executive Order was issued on July 31, 2025, titled “Further Modifying the Reciprocal Tariff Rates,” which modifies existing reciprocal tariff rates declared in Executive Order 14257 of April 2, 2025.
Key highlights of the tariff modifications include:
- New Ad Valorem Duties: The order imposes additional ad valorem duties on goods from specific trading partners listed in Annex I, replacing the duties previously imposed under Executive Order 14257 for these partners. Annex II provides a new HTS assigned per Country.
- Effective Date: These new duties become effective for goods entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. eastern daylight time 7 days after the date of this order. (Est. – August 7, 2025)
- Exemption: An exception applies to goods already loaded and in transit before this time, provided they are entered before October 5, 2025, in which case they remain subject to the previous duties.
- European Union Specifics: For goods originating from the European Union:
- If a good’s Column 1 Duty Rate (under HTSUS) is less than 15 percent, the sum of its Column 1 Duty Rate and the new additional ad valorem rate will total 15 percent.
- If a good’s Column 1 Duty Rate is at least 15 percent, the additional ad valorem rate will be zero.
- Unlisted Trading Partners: Goods from foreign trading partners not listed in Annex I will generally be subject to an additional ad valorem rate of 10 percent under the terms of Executive Order 14257, as amended.
- HTSUS Modifications: The Harmonized Tariff Schedule of the United States (HTSUS) will be modified to facilitate these new trading partner-specific rates, including the termination and replacement of certain headings. Existing Executive Order 14257, as amended, continues to apply, with the specified changes, and Executive Order 14298 (Modifying Reciprocal Tariff Rates To Reflect Discussions With the People’s Republic of China) remains unaffected.
To combat evasion, the order introduces stringent measures against transshipment. Any article determined by U.S. Customs and Border Protection (CBP) to have been transshipped to evade applicable duties will face an additional ad valorem duty of 40 percent, in lieu of the rate for the country of origin, alongside other applicable fines and penalties (such as those under 19 U.S.C. 1592). Importantly, no mitigation or remission of these transshipment penalties will be allowed. Furthermore, a list of countries and specific facilities involved in circumvention schemes will be published every six months.
The full announcement plus Annex I & II may be found here.
Additional implementation guidance is pending from CBP please contact your JSC representative to discuss the specific handling of your entry(ies), until we receive final notice from CBP. |