White House announces modified reciprocal tariff rates
Effective August 7, 2025
The White House on July 31, 2025, announced that President Trump signed an executive order to modify reciprocal tariff rates for certain countries.
Background
President Trump on April 2 signed an executive order to impose an additional 10% tariff on all countries, with higher tariffs for those with significant trade deficits with the United States, effective April 9 (read TradeNewsFlash). According to the White House fact sheet (July 31, 2025), since then, some countries have engaged in negotiations, while others have not. Based on these developments and recommendations from senior officials, the president decided to adjust the tariff rates.
Modified tariff rates
Countries listed in Annex I of the executive order will face specific tariffs as stated, while countries not listed in Annex 1 will be subject to a 10% tariff.
The Harmonized Tariff Schedule of the United States (HTSUS) will be updated as outlined in Annex II of the order. These changes will apply to goods entering or taken from a warehouse for consumption starting at 12:01 AM EDT, seven days after the order's date (i.e., August 7, 2025).
U.S. Customs and Border Protection on August 5, 2025, issued guidance on the application of additional duty rates.