White House Issues New Executive Order Modifying Reciprocal Tariff Rates Effective August 7, 2025

On July 31, 2025, President Trump signed an executive order under the International Emergency Economic Powers Act (IEEPA), adjusting reciprocal tariff rates for certain trading partners, expanding tariff measures originally established in Executive Order 14257 (issued April 2, 2025, Liberation Day). 

Provisions of the Order 

• Tariff Rate Adjustments: Goods from certain trading partners identified in Annex I (below) will be subject to revised ad valorem rates effective August 7, 2025. These rates replace those set under EO 14257, subject to existing exceptions. 

• EU-Specific Tariff Formula: For EU-origin goods, if the current duty rate is below 15%, additional duties will raise the effective rate to 15% total. For items already at or above 15%, no further tariff will apply. 

• Default Tariff Rate: Goods from countries not listed in Annex I remain subject to a 10% additional duty under EO 14257, as amended. 

• Transshipment Penalties: Items determined by CBP to be transshipped to evade duties will incur a 40% additional tariff, plus fines and other penalties under U.S. law. 

• Negotiation Linkage: For countries nearing trade or security agreements with the U.S., tariffs will remain in place temporarily until formal deals are concluded. 

• New HTSUS modifications will accompany the updated tariff schedule in Annex II, with obsolete headings and notes terminated for future entries. 

What Importers Should Know 

This executive order reinforces the administration’s intent to leverage tariffs as a tool to address trade imbalances while pressing foreign partners to align with U.S. economic and security interests. Importers should be prepared to: 

• Review Annex I for updated rates applicable to their supply chain, 

• Audit USMCA and other preferential program eligibility to mitigate duty exposure, 

• Assess tariff stacking risks where multiple measures (IEEPA, Section 232, etc.) may overlap, 

• Strengthen compliance documentation, particularly regarding origin verification to avoid transshipment penalties, and 

• Monitor future announcements, as additional modifications will follow based on ongoing negotiations and enforcement actions. 

At Allyn International, we are committed to supporting the global trade community with strategic, forward-thinking solutions to help navigate today’s complex tariff landscape. Whether you have questions about tariffs, trade agreements, or would like to explore strategies to reduce their impact on your business operations, our team is here to help. Contact us today for a consultation at sales@allynintl.com, call 239-489-9900, or reach out here. 

Annex 1 

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 > 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%

Contributor: Rebecca Anderson

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