Beginning (with some exceptions as indicated below) with cargo exported on or after August 7, 2025, new tariff rates are taking effect under a presidential executive order—representing one of the largest restructurings of U.S. trade policy in years.

Tariff rates now range from 10% to 41%, depending on country of origin. These changes impact nearly all importers.

Please read carefully and contact us with questions—especially if you have shipments currently in transit.

Key Changes Effective August 7

• New country-specific tariffs of 10% to 41% now apply to goods entered for consumption or withdrawn from warehouse for consumption on or after August 7.
• Goods that departed their foreign origin port before August 7 may still qualify for the previous (lower) duty rates—only if cleared through U.S. Customs by October 4.
• The longstanding $800 de minimis exemption is suspended as of August 29.
• Goods that appear rerouted to avoid country-specific tariffs may be subject to 40% transshipment penalties, pending documentation review.

Clarifying the October 5 Deadline

To retain the old (pre-August 7) tariff rate for shipments already in transit:

• The cargo must have been exported from origin before August 7, and
• It must be cleared by U.S. Customs no later than 11:59 PM Eastern on October 4.

This means the official CBP entry must be filed, accepted, and marked “Entered for Consumption” or “Withdrawn for Consumption” before the cutoff. Simply arriving at the port before October 5 is not enough. We strongly recommend early coordination to ensure full compliance and prevent unexpected duty increases.

Country-by-Country Tariff Snapshot

CANADA — 35%

• Tariff now active. Most goods under USMCA remain exempt.

MEXICO — 25%

• Implementation delayed for 90 days. USMCA-compliant goods remain duty-free during this window.

IN – India Tariff Correction (Two-Phase Increase)

• The initial 25% tariff on goods from India began August 7, 2025.
• A second 25% penalty tariff will be applied starting August 27, 2025, increasing the total to 50%.
• Exception: Goods exported from India before August 7 may still qualify for the 25% rate — if they arrive in the U.S. and clear CBP by September 17, 2025.

SOUTHEAST ASIA — 19%–20%

• Applies to Cambodia, Vietnam, Thailand, Indonesia, Malaysia, Philippines, and Pakistan.

EUROPEAN UNION — 15% Minimum

• All products previously under 15% duty are now increased to 15%. Rates above 15% remain unchanged.

UNITED KINGDOM — 10%

• Flat reciprocal rate now in effect across all goods.

SYRIA, MYANMAR, LAOS — 40%–41%

• These countries face the highest tariff levels and are subject to enhanced routing and documentation review.

CHINA — Up to 30%

• A temporary agreement currently caps tariffs at 30%. This cap is set to expire August 12, pending renegotiation.

Legal and Policy Developments

• On May 28, the Court of International Trade ruled that the new tariffs exceeded the President’s authority under IEEPA.
• An appeals court granted a stay of the ruling, meaning the tariffs remain enforceable during litigation.
• Congress is reviewing the Trade Review Act of 2025, which would limit future presidential authority over tariffs.
• We are closely monitoring these legal developments, which could result in potential refunds or reversals if the ruling is upheld.

What Importers Should Do Now

• Review your HTS codes and country-of-origin documentation for upcoming shipments.
• Confirm whether in-transit goods were exported before August 7, and ensure entry is filed and accepted before October 4.
• Recalculate landed cost estimates based on updated rates and potential routing risks.
• Strengthen routing documentation to avoid transshipment penalties.
• Prepare for possible processing delays due to reduced staffing at CBP and other federal agencies.

 

We are actively working with clients to review product classifications, evaluate sourcing strategies, and ensure entry filings are handled accurately and on time.

If you need assistance evaluating how these tariff changes impact your business, please contact your WB Skinner representative.

Thank you for your continued trust in WB Skinner Inc.

We are committed to keeping you informed, compliant, and competitive during this evolving trade environment.