The U.S. Presidential Administration issued an Executive Order and Fact Sheet addressing new International Emergency Economic Powers Act (IEEPA) Reciprocal Tariff rates for multiple countries, effective on August 7, 2025.
Key provisions outlined in the Executive Order and Fact Sheet include:
- There are two groups addressed in this Order:
- Effective August 7th, goods from countries listed in Annex 1 will be subject to tariff rates as shown in the list provided by the White House. (The current IEEPA 10% tariff rate will remain in effect until August 7th for these countries.)
- Countries that are not listed in Annex 1, will continue to be subjected to a 10% tariff. (This is consistent with IEEPA Reciprocal tariffs published April 2nd.)
- Brazil is a notable exception – and is currently levied a 10% Reciprocal tariff stacked on the recently announced 40% tariff, for a total of 50%.
- There is an in-transit provision importers should note:
- “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on the final mode of transit before 12:01 a.m. eastern daylight time [August 7, 2025], and entered for consumption, or withdrawn from warehouse for consumption, before 12:01 a.m. eastern daylight time on October 5, 2025,” shall not be subject to the new rates, and remain subject to the 10% additional duty.
- The order also addresses transshipments, although a definition of ‘transshipment’ is not yet published:
- If CBP determines there is a ‘transshipment’, it will be subject to a 40% tariff rate as well as any additional applicable duties, as well as possible fines or penalties.
- The U.S. Government will also publish circumvention schemes and countries every six months to inform the public, national security reviews, and commercial due diligence.
Tariff Status for China, Canada, and Mexico:
- Recent negotiations between the U.S. and China has not yielded any formal changes, so current duty rates for the country include:
- 10% IEEPA duties
- 20% Fentanyl tariff
- Section 301 tariffs
- Section 232 duties
- Most favored nations tariffs
- On July 31, 2025 Mexico received a 90-day extension for IEEPA negotiations.
- Effective today, August 1, Canadian goods imported to the U.S. that do not qualify for the U.S.-Mexico-Canada Agreement (USMCA) are now subject to a 35% tariff.
Due to the rapidly changing application and modifications of duty rates, please note that Deringer is not responsible for coordinating the timing of U.S. entry and imposed tariff rates.
