Further Modifying
the Reciprocal Tariff Rates, New 1 Aug 2025 Reciprocal Tariff to Replace 2
April Tariffs
Executive Orders/July 31, 2025
Executive Order: Modification of
Reciprocal Tariff Rates to Address U.S. Trade Deficits (Issued July 31, 2025)
Context
& Legal Basis
President
Trump issued this Executive Order under the authority of:
·
International Emergency Economic Powers Act (IEEPA)
·
National Emergencies Act
·
Section 604 of the Trade Act of 1974
·
Section 301 of Title 3, U.S. Code
It builds on Executive Order 14257 (April 2,
2025), which declared a national emergency in response to large
and persistent U.S. goods trade deficits that threaten national security.
Key
Directives
1. New
Tariff Regime
·
Replaces previous ad valorem tariffs
imposed under EO 14257 with new reciprocal tariffs based on
country-specific trade behavior and negotiations.
·
Annex I lists countries subject to
individualized tariffs.
·
All other countries face a 10%
tariff by default.
2.
Treatment of EU Goods
·
If a product from the EU has a current U.S.
tariff below 15%, the total tariff will be raised to 15%.
·
If the tariff is 15% or higher, no
additional duty will apply.
3.
Implementation Timelines
·
New tariffs take effect 7 days after
the order’s issuance.
·
Exception: Goods already in transit before
the effective date and entered before October 5, 2025, are subject to
the previous tariffs.
4.
Transshipment Penalty
·
Goods found to be transshipped
to evade tariffs:
o
Will face a 40% duty.
o
Are subject to fines and penalties under
U.S. law.
o
No mitigation or remission will be allowed.
5.
Country Monitoring
·
The Secretary of Commerce and U.S. Trade
Representative (USTR) must:
o
Monitor and report on
country compliance.
o
Recommend additional actions if foreign partners
fail to align or retaliate.
o
Publish a semiannual
list of transshipment violators.
Administrative
Measures
·
HTSUS (Harmonized Tariff Schedule of the U.S.) will be
modified to reflect new tariff lines.
·
Certain previously suspended HTS headings and notes
will be terminated and replaced.
Enforcement
& Oversight
·
Implementation led by:
o
Secretary of Commerce
o
USTR
o
Secretary of Homeland Security (via CBP)
o
International Trade Commission
o
Other senior administration officials
·
These officials are authorized to issue rules,
suspend or amend regulations, and publish guidance in the Federal Register.
General
Provisions
·
No new rights or benefits are
created for individuals.
·
The order is subject to availability of
appropriations and applicable law.
·
Costs for publishing this order will be borne by
the USTR.
Objective
This Executive Order reinforces the Trump
Administration’s strategy to rebalance global trade, safeguard U.S.
economic and national security, and encourage foreign manufacturing and
investment within the United States by penalizing unreciprocated trade
practices and promoting bilateral trade fairness.
Editor’s Summary
Adjusted reciprocal tariff rates
announced by the U.S. (as of August 1, 2025) for various countries and
territories:
Key High-Tariff Countries (30%
and above)
|
Country/Territory |
Tariff |
|
Syria |
41% |
|
Laos |
40% |
|
Myanmar (Burma) |
40% |
|
Switzerland |
39% |
|
Iraq |
35% |
|
Serbia |
35% |
|
Libya |
30% |
|
South Africa |
30% |
|
Bosnia & Herzegovina |
30% |
|
Algeria |
30% |
Moderate Tariff Countries (20% to
29%)
|
Country/Territory |
Tariff |
|
India |
25% |
|
Kazakhstan |
25% |
|
Moldova |
25% |
|
Tunisia |
25% |
|
Brunei |
25% |
|
Vietnam |
20% |
|
Taiwan |
20% |
|
Sri Lanka |
20% |
|
Bangladesh |
20% |
|
Indonesia |
19% |
|
Malaysia |
19% |
|
Pakistan |
19% |
|
Philippines |
19% |
|
Thailand |
19% |
|
Nicaragua |
18% |
Standard Tariff Countries (≤15%)
·
Most countries not listed above (e.g., Brazil, UK,
EU*) are subject to 15% or lower tariffs.
·
EU-Specific Rule:
o
Goods with Column 1 duty ≥ 15% →
0% U.S. additional tariff
o
Goods with Column 1 duty < 15% → U.S.
additional tariff = 15% minus Column 1 duty
Special
Notes
·
United Kingdom: 10%
·
Brazil & Falkland Islands: 10%
·
Laos & Myanmar: Highest
rate at 40%
·
India: 25% plus potential penalties (as per prior Trump statements)
Annex-II Summary
U.S. Reciprocal Tariff
Adjustments under the Executive Order dated July 31, 2025:
Context
·
Under Executive Order 14257 and its subsequent
amendments, the U.S. is imposing reciprocal tariffs on a wide range of
countries to address large and persistent U.S. trade deficits, protect national
security, and enforce fair trade.
·
The order is effective from August 7, 2025
(with limited exceptions for goods already in transit).
Key Measures
1.
Country-Specific Tariffs
o
Tariff rates vary from 10% to 41%,
depending on bilateral trade imbalances, non-reciprocal trade practices, and
failure to negotiate.
o
India faces a 25% tariff.
o
Laos and Myanmar face the highest tariffs at
40%.
o
Switzerland (39%), Syria
(41%), Iraq and Serbia (35%), and others also face high duties.
2.
European Union
o
A tiered system:
§ If a
product's existing (Column 1) tariff is ≥15%, no extra duty
is applied.
§ If it's <15%,
an additional duty is imposed to raise it to 15% total.
3.
Special Anti-Evasion Rule
o
Products transshipped
to avoid duties (through a third country) will face a 40% penalty tariff,
plus other penalties.
4.
Exemptions
o
Goods already loaded and in transit before
12:01 a.m. on August 7, 2025, and arriving before October 5, 2025, are
exempt from the new duties.
Examples of Tariff Adjustments
|
Country |
Additional
Tariff |
|
India |
25% |
|
Indonesia |
19% |
|
Brazil |
10% |
|
Bangladesh |
20% |
|
European
Union |
Up to
15% |
|
United
Kingdom |
10% |
|
Switzerland |
39% |
|
Syria |
41% |
|
Myanmar,
Laos |
40% |
Implementation Mechanism
·
Changes are embedded in the Harmonized Tariff
Schedule (HTSUS) under specific new headings (e.g., 9903.02.01–9903.02.71).
·
Enforcement will be carried out by U.S. Customs
and Border Protection (CBP).
By the
authority vested in me as President by the Constitution and the laws of the
United States of America, including the International Emergency Economic Powers
Act (50 U.S.C. 1701 et seq.) (IEEPA), the National Emergencies Act (50
U.S.C. 1601 et seq.), section 604 of the Trade Act of 1974, as amended
(19 U.S.C. 2483), and section 301 of title 3, United States Code, I hereby
determine and order:
Section 1. Background. In Executive Order 14257 of April 2, 2025
(Regulating Imports with a Reciprocal Tariff To
Rectify Trade Practices That Contribute to Large and Persistent Annual United
States Goods Trade Deficits), I found that conditions reflected in large and
persistent annual U.S. goods trade deficits constitute an unusual and
extraordinary threat to the national security and economy of the United States
that has its source in whole or substantial part outside the United States. I
declared a national emergency with respect to that threat, and to deal with
that threat, I imposed additional ad valorem duties that I deemed
necessary and appropriate.
I have
received additional information and recommendations from various senior
officials on, among other things, the continued lack of reciprocity in our
bilateral trade relationships and the impact of foreign trading partners’
disparate tariff rates and non-tariff barriers on U.S. exports, the domestic
manufacturing base, critical supply chains, and the defense
industrial base. I also have received additional information and
recommendations on foreign relations, economic, and national security matters,
including the status of trade negotiations, efforts to retaliate against the
United States for its actions to address the emergency declared in Executive
Order 14257, and efforts to align with the United States on economic and
national security matters.
For
example, some trading partners have agreed to, or are on the verge of agreeing
to, meaningful trade and security commitments with the United States, thus signaling their sincere intentions to permanently remedy
the trade barriers that have contributed to the national emergency declared in
Executive Order 14257, and to align with the United States on economic and
national security matters. Other trading partners, despite having engaged in
negotiations, have offered terms that, in my judgment, do not sufficiently
address imbalances in our trading relationship or have failed to align
sufficiently with the United States on economic and national-security matters.
There are also some trading partners that have failed to engage in negotiations
with the United States or to take adequate steps to align sufficiently with the
United States on economic and national security matters.
After
considering the information and recommendations that I have recently received,
among other things, I have determined that it is necessary and appropriate to
deal with the national emergency declared in Executive Order 14257 by imposing
additional ad valorem duties on goods of certain trading partners at the
rates set forth in Annex I to this order, subject to all applicable exceptions
set forth in Executive Order 14257, as amended, in lieu of the additional ad
valorem duties previously imposed on goods of such trading partners in
Executive Order 14257, as amended.
Sec. 2. Tariff Modifications. (a) The Harmonized Tariff Schedule of the United
States (HTSUS) shall be modified as provided in Annex II to this order. These
modifications shall be effective with respect to goods entered for consumption,
or withdrawn from warehouse for consumption, on or after 12:01 a.m. eastern
daylight time 7 days after the date of this order, except that 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 7 days after the date of this
order, 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 such additional duty and shall instead remain subject to the additional
ad valorem duties previously imposed in Executive Order 14257, as
amended.
(b)
Certain foreign trading partners identified in Annex I to this order have
agreed to, or are on the verge of concluding, meaningful trade and security
agreements with the United States. Goods of those trading partners will remain
subject to the additional ad valorem duties provided in Annex I to this
order until such time as those agreements are concluded, and I issue subsequent
orders memorializing the terms of those agreements.
(c) As
provided in Annex I to this order, the additional ad valorem rate of
duty applicable to any good of the European Union is determined by the good’s
current ad valorem (or ad valorem equivalent) rate of duty under
column 1 (General) of the HTSUS (“Column 1 Duty Rate”). For a good of the
European Union with a Column 1 Duty Rate that is less than 15 percent, the sum
of its Column 1 Duty Rate and the additional ad valorem rate of duty
pursuant to this order shall be 15 percent. For a good of the European Union
with a Column 1 Duty Rate that is at least 15 percent, the additional ad
valorem rate of duty pursuant to this order shall be zero.
(d) Goods
of any foreign trading partner that is not listed in Annex I to this order will
be subject to an additional ad valorem rate of duty of 10 percent
pursuant to the terms of Executive Order 14257, as amended, unless otherwise
expressly provided. This rate shall be effective with respect to goods entered
for consumption, or withdrawn from warehouse for consumption, on or after 12:01
a.m. eastern daylight time 7 days after the date of this order.
(e) The
HTSUS shall also be modified by continuing to suspend headings 9903.01.43
through 9903.01.62 and 9903.01.64 through 9903.01.76, and subdivisions
(v)(xiii)(1)–(9) and (11)‑(57)
of U.S. note 2 to subchapter III of chapter 99 of the HTSUS, until the
effective date of the modifications provided in Annex II to this order. Upon
the effective date of the modifications provided in Annex II to this order, to
facilitate implementation of the rates of duty provided in Annex I to this
order, headings 9903.01.43 through 9903.01.62 and 9903.01.64 through
9903.01.76, which are organized by rate of duty, and subdivisions (v)(xiii)
(1)-(9) and (11)-(57) of U.S. note 2 to subchapter III of chapter 99 of the
HTSUS shall be terminated as to future entries and replaced by the new trading
partner-specific headings provided in Annex II to this order.
(f)
Excluding the changes set forth in subsections (a) through (d) of this section,
the terms of Executive Order 14257, as amended, shall continue to apply.
(g)
Nothing in this order shall be construed to alter or otherwise affect Executive
Order 14298 of May 12, 2025 (Modifying Reciprocal Tariff Rates To Reflect Discussions With the
People’s Republic of China).
(h) The
Secretary of Commerce and the United States Trade Representative, in
consultation with the Secretary of Homeland Security, acting through the
Commissioner of U.S. Customs and Border Protection (CBP), and the Chair of the
United States International Trade Commission, shall determine whether any
additional modifications to the HTSUS are necessary to effectuate this order
and may make such modifications through notice in the Federal Register.
Sec. 3. Transshipment. (a) An article determined by CBP to have been transshipped to evade applicable duties under section 2 of
this order shall be subject to (i) an additional ad
valorem rate of duty of 40 percent, in lieu of the additional ad valorem
rate of duty applicable under section 2 of this order to goods of the country
of origin, (ii) any other applicable or appropriate fine or penalty, including
those assessed under 19 U.S.C. 1592, and (iii) any other United States duties,
fees, taxes, exactions, or charges applicable to goods of the country of
origin. CBP shall not allow, consistent with applicable law, for mitigation or
remission of the penalties assessed on imports found to be transshipped
to evade applicable duties.
(b) The
Secretary of Commerce and the Secretary of Homeland Security, acting through
the Commissioner of CBP, in consultation with the United States Trade
Representative, shall publish every 6 months a list of countries and specific
facilities used in circumvention schemes, to inform public procurement,
national security reviews, and commercial due diligence.
Sec. 4. Implementation. The Secretary of Commerce, the Secretary of
Homeland Security, and the United States Trade Representative, as applicable,
in consultation with the Secretary of State, the Secretary of the Treasury, the
Assistant to the President for Economic Policy, the Assistant to the President
and Senior Counselor for Trade and Manufacturing, the
Assistant to the President for National Security Affairs, and the Chair of the
International Trade Commission, are directed and authorized to take all necessary
actions to implement and effectuate this order, consistent with applicable law,
including through temporary suspension or amendment of regulations or notices
in the Federal Register and by adopting rules, regulations, or guidance,
and to employ all powers granted to the President by IEEPA, as may be necessary
to implement this order. Each executive department and agency shall take all
appropriate measures within its authority to implement this order.
Sec. 5. Monitoring and
Recommendations. (a) The
Secretary of Commerce and the United States Trade Representative shall monitor
the circumstances involving the emergency declared in Executive Order 14257 and
shall regularly consult on such circumstances with any senior official they
deem appropriate. The Secretary of Commerce and the United States Trade
Representative shall inform me of any circumstance that, in their opinion,
might indicate the need for further action by the President. The Secretary of
Commerce and the United States Trade Representative shall also inform me of any
circumstance that, in their opinion, might indicate that a foreign trading
partner has taken adequate steps to address the emergency declared in Executive
Order 14257.
(b) The
Secretary of Commerce and the United States Trade Representative, in
consultation with any senior official they deem appropriate, shall recommend to
me any necessary additional action if this action is not effective in resolving
the emergency declared in Executive Order 14257.
(c) The
Secretary of Commerce and the United States Trade Representative, in
coordination with the appropriate senior officials, shall recommend additional
action, if necessary, should a foreign trading partner fail to take adequate
steps to address the emergency declared in Executive Order 14257 or should a
foreign trading partner retaliate against the United States in response to the
actions taken to address the emergency declared in Executive Order 14257 or any
subsequent order issued to address that emergency.
Sec. 6. Severability. If any provision of this order, or the
application of any provision of this order to any individual or circumstance,
is held to be invalid, the remainder of this order and the application of its
provisions to any other individuals or circumstances shall not be affected.
Sec. 7. General Provisions. (a) Nothing in this order shall be construed to
impair or otherwise affect:
(i) the authority granted by law to an executive
department or agency, or the head thereof; or
(ii) the
functions of the Director of the Office of Management and Budget relating to
budgetary, administrative, or legislative proposals.
(b) This
order shall be implemented consistent with applicable law and subject to the
availability of appropriations.
(c) This
order is not intended to, and does not, create any right or benefit,
substantive or procedural, enforceable at law or in equity by any party against
the United States, its departments, agencies, or entities, its officers,
employees, or agents, or any other person.
(d) The
costs for publication of this order shall be borne by the Office of the United
States Trade Representative.
DONALD J.
TRUMP
THE WHITE
HOUSE/July 31, 2025.
ANNEX I
|
Countries
and Territories |
Reciprocal
Tariff, Adjusted |
|
Afghanistan |
15% |
|
Algeria |
30% |
|
Angola |
15% |
|
Bangladesh |
20% |
|
Bolivia |
15% |
|
Bosnia and Herzegovina |
30% |
|
Botswana |
15% |
|
Brazil |
10% |
|
Brunei |
25% |
|
Cambodia |
19% |
|
Cameroon |
15% |
|
Chad |
15% |
|
Costa Rica |
15% |
|
Côte d`Ivoire |
15% |
|
Democratic Republic of the Congo |
15% |
|
Ecuador |
15% |
|
Equatorial Guinea |
15% |
|
European Union: Goods with Column 1 Duty Rate[1] > 15% |
0% |
|
European Union: Goods with Column 1 Duty Rate
< 15% |
15% minus Column 1 Duty Rate |
|
Falkland Islands |
10% |
|
Fiji |
15% |
|
Ghana |
15% |
|
Guyana |
15% |
|
Iceland |
15% |
|
India |
25% |
|
Indonesia |
19% |
|
Iraq |
35% |
|
Israel |
15% |
|
Japan |
15% |
|
Jordan |
15% |
|
Kazakhstan |
25% |
|
Laos |
40% |
|
Lesotho |
15% |
|
Libya |
30% |
|
Liechtenstein |
15% |
|
Madagascar |
15% |
|
Malawi |
15% |
|
Malaysia |
19% |
|
Mauritius |
15% |
|
Moldova |
25% |
|
Mozambique |
15% |
|
Myanmar (Burma) |
40% |
|
Namibia |
15% |
|
Nauru |
15% |
|
New Zealand |
15% |
|
Nicaragua |
18% |
|
Nigeria |
15% |
|
North Macedonia |
15% |
|
Norway |
15% |
|
Pakistan |
19% |
|
Papua New Guinea |
15% |
|
Philippines |
19% |
|
Serbia |
35% |
|
South Africa |
30% |
|
South Korea |
15% |
|
Sri Lanka |
20% |
|
Switzerland |
39% |
|
Syria |
41% |
|
Taiwan |
20% |
|
Thailand |
19% |
|
Trinidad and Tobago |
15% |
|
Tunisia |
25% |
|
Turkey |
15% |
|
Uganda |
15% |
|
United Kingdom |
10% |
|
Vanuatu |
15% |
|
Venezuela |
15% |
|
Vietnam |
20% |
|
Zambia |
15% |
|
Zimbabwe |
15% |
[1] For
purposes of this Executive Order and its Annexes, “Column 1 Duty Rate” means
the ad valorem (or ad valorem equivalent) rate of duty under
column 1-General of the Harmonized Tariff Schedule of the United States
(HTSUS).