Legis
Trade
Executive order · Thursday 31 July 2025

Further Modifying The Reciprocal Tariff Rates

The order replaces prior reciprocal tariffs with country-specific rates and imposes a 40% duty on tariff-evasion transshipments.

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The changes broaden and recalibrate tariffs intended to address U.S. goods trade deficits, foreign trade barriers, supply-chain risks, and defense-industrial concerns. Most new rates take effect seven days after the order.

What the order does

  • Applies the country-specific tariff rates listed in Annex I and updates the Harmonized Tariff Schedule accordingly.
  • Sets European Union goods’ combined general and additional tariff at 15% when the existing rate is below 15%, with no additional tariff when it is already at least 15%.
  • Applies a 10% additional tariff to goods from trading partners not listed in Annex I, unless another rule applies.
  • Preserves prior tariff treatment for qualifying goods already in transit and entered before October 5, 2025.
  • Imposes a 40% additional duty and other penalties on goods transshipped to evade tariffs, without mitigation or remission of those penalties.
  • Requires publication every six months of countries and facilities used in tariff-circumvention schemes.
  • Directs officials to monitor negotiations, retaliation, and compliance and recommend further tariff action when needed.

Who it affects

  • U.S. importers and businesses sourcing goods from foreign trading partners.
  • Foreign exporters, governments, and facilities involved in U.S.-bound trade.
  • Domestic manufacturers, critical-supply-chain businesses, and the defense industrial base.
  • Importers or intermediaries found to be evading duties through transshipment.