U.S Tarffs Update

U.S. Tariffs in August 2025:

As of August 1, 2025, U.S. trade policy has entered a new and aggressive phase of tariff enforcement. Following the issuance of a new Executive Order on **July 31, 2025**, importers face immediate changes to ad valorem duty rates, enforcement measures for transshipment violations, and an increasingly complex geopolitical environment. This update provides a consolidated technical briefing on the most significant legal, regulatory, and economic developments surrounding U.S. tariffs as of early August 2025.

Implementation of New Reciprocal Tariff Rates – Effective August 7, 2025 The new Executive Order modifies and expands upon the provisions of **Executive Order 14257**, originally issued in April 2025, which declared a national emergency in response to persistent U.S. goods trade deficits. Acting under the **International Emergency Economic Powers Act (IEEPA)** and other statutory authorities, the July 31 order restructures reciprocal tariffs by implementing a more granular system of **country-specific ad valorem duties**, replacing earlier flat-rate approaches. The adjusted tariff rates will apply to all goods **entered for consumption or withdrawn from warehouse for consumption on or after 12:01 a.m. EDT on August 7, 2025**. Importantly, goods that are **loaded and in transit prior to this date** are eligible for the previous tariff rates if they are entered before **October 5, 2025**. This grace period creates a narrow compliance window for importers to finalize entries under legacy rates. The newly issued **Annex I** outlines the reciprocal tariff rate applicable to each country or territory. Rates range from **10% (e.g., United Kingdom, Brazil, Falkland Islands)** to **40% or more (e.g., Myanmar, Laos, Syria)**. Countries not listed in Annex I remain subject to a **baseline 10% ad valorem duty**, unless otherwise specified by separate agreements. One key innovation in the tariff structure is the differentiated treatment of goods originating in the **European Union (EU)**. Products from the EU with a **Column 1-General duty rate below 15%** under the Harmonized Tariff Schedule of the United States (HTSUS) will now face an **additional duty sufficient to bring the total to 15%**. However, if the product’s existing Column 1 rate is **15% or higher**, no additional duty applies. The HTSUS will be formally updated through **Annex II**, which terminates obsolete Chapter 99 provisions and introduces new partner-specific tariff lines. These changes will be published in the Federal Register and coordinated by the U.S. International Trade Commission, Customs and Border Protection (CBP), the U.S. Trade Representative (USTR), and the Department of Commerce. ### II. Heightened Enforcement of Anti-Transshipment Provisions Among the most severe enforcement tools introduced in this order is the imposition of a **40% ad valorem duty** on any article determined by CBP to have been **transshipped to evade applicable duties**. In addition to the punitive duty, violators will face penalties under **19 U.S.C. § 1592**, and—critically—**no penalty mitigation or remission will be permitted under this regime**. This signals a zero-tolerance approach to customs fraud involving third-country routing or document misrepresentation. To further support enforcement, the ### VI. Customs Broker Compliance Checklist In light of these developments, we recommend the following actions for all importers: 1. **Review Country of Origin Determinations** Ensure declarations reflect accurate and verifiable COO data. Use certificates of origin where applicable. 2. **Update HTSUS Classifications** Reassess product classifications to confirm applicable Column 1 duty rates and determine new total effective rates under Annex I. 3. **Recalculate Landed Cost Models** Incorporate new duties, compliance fees, and potential delays into total landed cost forecasting. 4. **Audit Logistics Partners and Supply Chains** Avoid sourcing through flagged transshipment jurisdictions; evaluate direct shipment options and bonded warehouse strategies. 5. **Track In-Transit Shipments** Identify shipments loaded before August 7 and ensure timely entry before October 5 to benefit from older duty rates. 6. **Monitor Legal Developments** Stay informed on CIT and appellate rulings that could alter the validity of the executive orders and create refund opportunities. 7. **Prepare for China Trade Contingencies** Develop backup sourcing and pricing models in case the U.S.–China truce lapses on August 12.

Conclusion : The tariff landscape in the United States is evolving quickly and with serious implications for global trade compliance. The latest executive order introduces a more targeted and enforceable approach to reciprocal tariff policy—one that demands operational and legal diligence across all sectors. Customs brokers and compliance professionals should treat the next 60–90 days as a critical window for proactive adjustment and enforcement preparedness. We’ll continue to monitor policy announcements, Federal Register notices, and court decisions to provide you with up-to-date guidance.