Further Modifying the Reciprocal Tariff Rates

The order modifies the additional reciprocal tariff rates first imposed under the national emergency declared in April 2025, replacing country-grouped rate headings in the Harmonized Tariff Schedule with new trading-partner-specific headings listed in Annex I. Countries not listed in Annex I remain subject to a flat 10% additional duty. The EU receives a formula-based rate: for any EU good whose existing base tariff rate is below 15%, the combined total is topped up to 15%; for EU goods already at or above 15%, no additional duty applies. Goods determined by U.S. Customs and Border Protection to have been transshipped to evade the applicable duties face a 40% additional duty, plus other fines and penalties that cannot be mitigated or remitted.

The new rates take effect seven days after signing. Goods already loaded onto a vessel and in transit at that moment may still enter under the prior rates, but only if they arrive before October 5, 2025. The order expressly preserves all exceptions from the original April 2025 order and does not alter the separate China-specific tariff modifications issued in May 2025. Rates for trading partners near concluding formal trade and security agreements remain in place until those agreements are signed and memorialized in subsequent orders.

U.S. importers and customs brokers bringing goods into the country from any foreign trading partner, foreign exporters and manufacturers whose goods are subject to the modified rates, businesses that rely on imported inputs, and consumers of goods affected by the new tariff levels.

The changed rates alter the landed cost of imported goods from many countries starting August 7, 2025, directly affecting what U.S. businesses pay for foreign inputs and what consumers pay for imported products. The new EU formula and heightened transshipment penalties create new compliance requirements for supply chains that route goods through third countries.

Commerce and USTR implement the rate changes by modifying the HTSUS: old rate-grouped headings are suspended and replaced by new trading-partner-specific headings from Annex II. Rates for near-deal partners stay in place until formal agreements are signed. CBP enforces transshipment rules and is barred from mitigating confirmed-evasion penalties. Commerce and Homeland Security must publish a transshipment watch list every six months. Commerce and USTR monitor the national emergency continuously and must recommend further presidential action if current measures prove insufficient or if a partner retaliates. A severability clause protects remaining provisions if any part is invalidated.