Last night, the White House issued an Executive Order modifying the Reciprocal Rates of Duty, authorized under the International Emergency Economic Powers Act (IEEPA). These revised duties will go into effect on August 7, 2025, at 12:01 a.m. Eastern Time. While the Executive Order contains vague language that could be interpreted as these new tariffs being in addition to the current 10%, it is our opinion, and we believe it is more likely that they will replace the existing 10% reciprocal duty.

In-Transit Exemption: Goods that are loaded on their final conveyance—excluding feeder vessels from origins requiring feeder service—prior to August 7 will revert to the current reciprocal duties. In other words, these goods will not be subject to the new tariffs announced on July 31, 2025.

Comparison to Previous Reciprocal Duties:

The updated duty rates appear to be lower than those announced on April 2, 2025. We will be updating our Tariff Matrix on our website by Tuesday. In the meantime, we encourage you to review the full Executive Order.  They are between 10-40%.
Please refer to Annex 1 at the end of the document for the Country-Specific Rates.

EU Reciprocal Duties – Preliminary Summary

While the EU agreement is not yet finalized, both the EU and U.S. summaries suggest aligned positions. Key provisions include:

• 15% Flat Duty Rate
  This rate is inclusive of existing Column 1 duties. As we’ve explained in prior Tariff Tuesday webinars, this means the 15% is a cap, not an additional layer.
• Impact on Automotive Sector
  The 15% flat rate would apply to autos and auto parts, replacing the current 25% Section 232 duty on auto parts—resulting in potential cost savings for the automotive industry.
• Understanding the Tariff Mechanisms
  • Column 1 tariffs are part of the Harmonized Tariff Schedule, enacted by Congress.
  • 301, 232, and IEEPA tariffs are Presidential trade remedies, typically triggered by USTR, the Department of Commerce, or in response to national emergencies.

Other Developments

Additional updates are expected involving:

• Brazil
• Copper
• And more (it’s only 1:30pm on the East Coast!)

August 1, 2025