August 7, 2025
Trade Alert: Reciprocal Tariff Updates Effective August 7, 2025
U.S. Customs and Border Protection (CBP) has issued updated guidance under Executive Order 14257, as amended by the July 31, 2025 EO titled “Further Modifying the Reciprocal Tariff Rates.” These changes, effective August 7, 2025, impact additional duties on imported goods under the International Emergency Economic Powers Act (IEEPA). See CSMS# 65829726 for guidance.
1. Tariff Application:
2. Exemptions Include:
3. Chapter 98 Considerations:
4. Transshipment Penalty:
Please refer to the CSMS message for full details # 64649265 - GUIDANCE – Reciprocal Tariffs, April 5, 2025 Effective Date and CSMS # 64680374 - GUIDANCE – Reciprocal Tariffs, April 5 and April 9, 2025, Effective Dates.
Additional link: Annex II
We will continue to monitor this situation and provide updates when available. Please contact us if you have any questions about this or any other trade matter.
1. Tariff Application:
- Goods from countries listed in Annex I of the EO will be subject to additional duties under HTSUS headings 9903.02.02 – 9903.02.71.
- EU Goods:
- If Column 1 duty ≥ 15% → No reciprocal tariff (use 9903.02.19).
- If Column 1 duty < 15% → Total duty = 15% (use 9903.02.20).
- China (incl. Hong Kong & Macau): Continues to face 10% reciprocal tariff under 9903.01.25.
2. Exemptions Include:
- In-transit goods (subject to 10% tariff if entered between Aug 7–Oct 5).
- Products from Canada (9903.01.26) and Mexico (9903.01.27) under USMCA.
- Goods from Column 2 countries (Belarus, Cuba, North Korea, Russia).
- Humanitarian donations, informational materials, and certain HTSUS-classified goods.
- Section 232 products (e.g., steel, aluminum, vehicles, copper).
- Goods with ≥20% U.S. content (only non-U.S. portion is dutiable).
3. Chapter 98 Considerations:
- Most Chapter 98 entries are exempt except those under AGOA, Caribbean Basin, and certain Free Trade Agreements.
- TIB entries must report IEEPA HTSUS numbers but are not subject to duties if compliant.
4. Transshipment Penalty:
- Goods found to be transshipped to evade tariffs will incur a 40% additional duty, plus other applicable penalties.
Please refer to the CSMS message for full details # 64649265 - GUIDANCE – Reciprocal Tariffs, April 5, 2025 Effective Date and CSMS # 64680374 - GUIDANCE – Reciprocal Tariffs, April 5 and April 9, 2025, Effective Dates.
Additional link: Annex II
We will continue to monitor this situation and provide updates when available. Please contact us if you have any questions about this or any other trade matter.
