August 7 Marks the Start of Updated U.S. Import Tariff Rates and Rules
These tariffs aim to address imbalances in the relationship between the U.S. and its trading partners, with a focus on economic and national-security matters.
The White House has issued an Executive Order (EO) announcing updated U.S. import tariff rates and rules that will be implemented seven days after the date of the Order.
The tariff rates, which are provided in Annex I of the Order, will come into effect on August 7, 2025, at 12:01 a.m. Eastern Daylight Time (EDT).
This update to EO 14257 of April 2 modifies the reciprocal tariff rates that were previously set between 10% and 41%.
The Harmonized Tariff Schedule of the United States (HTSUS) will be modified, as per Annex II of the new EO, for goods entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. EDT on August 7.
Under the new Order, the following duty treatments apply:
Goods from countries with ongoing trade discussions with the U.S. remain subject to the Annex I additional import tariff rates until their agreements are finalized and implemented by subsequent Orders.
Goods from countries not listed in Annex I of the Order are subject to a 10% additional ad valorem duty rate, consistent with EO 14257, as amended.
No additional ad valorem duties will be applied to goods that are loaded onto a vessel at the port of loading and are in transit on the final mode of transit before 12:01 a.m. EDT on August 7, 2025, and entered for consumption, or withdrawn from warehouse for consumption, before 12:01 a.m. EDT on October 5, 2025.
These goods will remain subject to the duties previously imposed in EO 14257, as amended.
The new Order does not change or affect EO 14298 of May 12, 2025, regarding reciprocal tariff adjustments tied to discussions with the People’s Republic of China.
Imports that are transshipped to evade applicable import tariff rates will be subject to an additional ad valorem duty rate of 40%.
In addition to paying this duty, if CBP determines that transshipment occurred, importers may be subject to:
CBP will not allow any mitigation or remission of any penalties if goods are found to have been transshipped to evade duties.
A list of countries and specific facilities used in circumvention schemes will be published every six months.
Until the effective date of the modifications provided in Annex II, the HTSUS will continue to suspend the following:
When Annex II modifications become effective, to facilitate implementation of the Annex I duty rates, the suspended headings and note subdivisions will be terminated for future entries.
They will be replaced with new trading partner–specific headings set out in Annex II.
If you import goods into the U.S., we recommend you take the following steps ahead of the August 7 implementation date:
At Cole International, we constantly monitor changing trade regulations and offer customs and compliance consulting services to help businesses navigate these changes.
Additionally, we provide timely and efficient customs brokerage services to help U.S. importers streamline their customs clearance and other import processes.
Please reach out to one of our trade professionals to discuss the impact of the updated import tariff rates and rules on your business and how we can help.