U.S. Increases Tariffs on Canadian and Global Imports

President Trump has issued an executive order modifying tariffs under the national emergency declared in Executive Order 14257 imposing additional ad valorem tariffs on imports from a wide range of countries.

Additionally, a separate executive order was entered to increase tariffs on non-USMCA goods coming from Canada from 25% to 35%.   

Here is the skinny:

• Tariffs are effective for goods entered or withdrawn for consumption on or after 12:01 a.m. EDT, 7 days from the order’s date (i.e., August 7, 2025), except the cargo was in transit before that time, before that time (and entered before October 5, 2025).
• Annex I: Lists new ad valorem tariff rates for specific countries.
• For the European Union:
  • If a good’s current duty <15%, duty is raised to 15%.
  • If duty ≥15%, no additional tariff imposed.
• If a country is not listed in Annex I, it is subject to a default 10% additional tariff.
• Countries nearing agreement with the U.S. remain subject to new tariffs until agreements are finalized.
• Goods found to be transshipped to avoid tariffs will face a 40% tariff, other penalties, and no leniency.  A list of countries/facilities used in circumvention will be published every 6 months.
• Modifications to Harmonized Tariff Schedule (HTSUS) detailed in Annex II.
• Outdated HTSUS codes are being replaced with partner-specific codes outlined in Annex II.

What does this mean for me?

• The effective date is August 7th.  Entry date does not govern, effective date is based on cargo arrival. 
• The in-transit exemption applies only to goods loaded on the final vessel destined for the Unites States.  Meaning, if the cargo transships, that transship date must be prior to August 7th.  Air, rail, and border crossings do not qualify for the exemption.
  • If the goods qualify for the in-transit exemption, the reciprocal rate of 10% still applies.
• Annex I below lists the new ad valorem tariff rates for specific countries. 
• The rates outlined below will replace the rates provided in Executive Order 14257 announced in April.  If a country is not listed below, the 10% from the April Executive Order will remain in effect. 
• Any exceptions outlined in Executive Order 14257 will still apply to the below rates.  As example, Annex II outlined in the April 2nd Executive Order will still apply to goods from countries outlined in this Order.
• Goods from the European Union will be subject to a total of 15%.  This is now inclusive of the normative baseline HTS duty rate identified in column 1 of the USHTS.  As example, if the baseline HTS duty rate is 5%, then an additional 10% will be assessed.  

Annex I: