Many Reciprocal Tariff Rates Increased

President Trump issued an executive order July 31 adjusting tariff rates on imports from all countries effective August 7. The executive order includes country-specific rates between 15 percent and 41 percent for dozens of trading partners, while countries not named will continue to be subject to a 10 percent rate.

Reciprocal tariffs under the International Emergency Economic Powers Act, set at 10 percent for many countries but at 11 to 50 percent for others, were initially announced in an April 2 executive order. The higher tariffs were subsequently suspended until 12:01 am on August 1, while the 10 percent rate has remained in place for imports from virtually all countries. This action does not affect the reciprocal tariff on imports from China, which is set to remain at ten percent through mid-August.

There is an in-transit exemption for “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on the final mode of transit before 12:01 a.m. eastern daylight time August 7, 2025, and entered for consumption, or withdrawn from warehouse for consumption, before 12:01 a.m. eastern daylight time on October 5, 2025.” These goods will not be subject to the new higher rates, but remain subject to the 10 percent additional duty.

The executive order also contains penalties for tansshipment. If CBP determines imports to be transshipped, they will be subject to a) a 40 percent duty instead of the normal duty for that country, 2) additional fines and penalties, and c) any other U.S. duties, fees, taxes, exactions or charges applicable. CBP will not allow for mitigation of the penalties assessed.  

Click here to stay up to date on the U.S.’ reciprocal tariffs.

ST&R offers a three-pronged approach to avoiding, mitigating, and/or recovering import tariffs. For more information on which of these strategies might be most effective for your business, please contact ST&R.