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By Sarah Hurzeler · August 1, 2025 · Curated by George's Blog
Tariff Update: New US Tariffs take effect August 7
A new Executive Order issued July 31st modifies and expands the tariff structure established under EO 14257. These changes take effect 7 days after issuance and introduce a tiered duty framework based on bilateral trade negotiations and alignment with US economic and national security objectives.
Key Tariff Changes:
European Union (EU):
- Goods with a Column 1 Duty Rate <15% will now be topped up to a total of 15%.
- Goods with a Column 1 Duty Rate ≥15% will not face additional duties beyond existing rates.
Countries Listed in Annex I (Negotiating or Near Agreement):
- Remain subject to elevated ad valorem duties outlined in Annex I until trade/security deals are finalized.
- These rates replace the previously imposed duties under EO 14257.
All Other Countries:
- Subject to a 10% additional ad valorem duty under the original EO 14257 terms.
Transshipment Penalties:
- Goods found to be rerouted to evade tariffs will face a 40% penalty tariff.
Effective Dates:
→ Tariffs apply to goods entered for consumption or withdrawn from warehouse starting 7 days after the order is signed.
→ Exception: Goods already in final mode of transit before the effective date and arriving before October 5, 2025 will be charged under the previous duty schedule.
Next Steps:
Annex I outlines the country-specific tariff rates, while Annex II details the corresponding changes to the HTSUS codes.
→ Importers, brokers, and trade compliance teams should review the full Executive Order carefully...this update includes significant technical adjustments and enforcement provisions that may impact classification, routing, and landed cost calculations.
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