Reciprocal Tariff Pause Announced for Select Countries Under Executive Order 14257

Reciprocal Tariff Pause Announced for Select Countries Under Executive Order 14257

RECIPROCAL TARIFF UPDATE: 7-Day Pause Announced for Certain Countries

President Trump has announced a seven-day pause on the implementation of the reciprocal tariffs that were scheduled to take effect at 12:01 a.m. EDT on August 1, 2025, for certain countries, excluding Canada and EU goods, which remain subject to the previously announced measures.

In his statement, the President explained:

“Some trading partners have agreed to, or are on the verge of agreeing to, meaningful trade and security commitments with the United States—thus signaling their sincere intentions to permanently remedy the trade barriers that have contributed to the national emergency declared in Executive Order 14257, and to align with the United States on economic and national security matters.”

As a result, the Administration has determined it is both necessary and appropriate to proceed with additional ad valorem duties on goods from certain trading partners, as detailed in Annex I of the forthcoming implementation documents.

Tariff Modifications

(a) The Harmonized Tariff Schedule of the United States (HTSUS) shall be modified as set forth in Annex II to this order.

These modifications shall take effect for goods entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. Eastern Daylight Time (EDT), seven (7) days after the date of this order.

However, goods that meet all of the following conditions shall not be subject to the additional duties established in this order, and shall instead remain subject to the previous ad valorem duties imposed under Executive Order 14257, as amended:

• The goods were loaded onto a vessel at the port of loading prior to 12:01 a.m. EDT, seven (7) days after the date of this order.

• The goods were in transit on their final mode of transit at that time; and

• The goods are entered for consumption, or withdrawn from warehouse for consumption, before 12:01 a.m. EDT on October 5, 2025.

Certain foreign trading partners identified in Annex I to this order have agreed to, or are nearing the conclusion of, meaningful trade and security agreements with the United States. Until such agreements are finalized and I issue subsequent orders memorializing their terms, goods of those trading partners shall remain subject to the additional ad valorem duties specified in Annex I to this order.

As provided in Annex I, the additional ad valorem duty applicable to goods of the European Union (EU) shall be determined based on the good’s current ad valorem or ad valorem equivalent duty rate under column 1 (General) of the HTSUS (“Column 1 Duty Rate”;), as follows:

• If a good of the EU has a Column 1 Duty Rate of less than 15%, the total duty—including the additional ad valorem duty pursuant to this order—shall be increased to 15%.

• If a good of the EU has a Column 1 Duty Rate of 15% or more, no additional ad valorem duty shall be applied pursuant to this order.

(d) Goods originating in any foreign trading partner not listed in Annex I to this order shall be subject to an additional ad valorem duty rate of 10%, in accordance with Executive Order 14257, as amended, unless otherwise expressly provided. This rate shall apply to goods entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. Eastern Daylight Time, seven (7) days after the date of this order.

Canada products will be assessed an additional ad valorem rate of duty of 35% that is effective on or after 12:01am est on August 1 st for entries that are entered for consumption or withdrawn from warehouse for consumption.

Products classified under heading 9903.01.11, 9903.01.12, 9903.01.13, 9903.01.14, or 9903.01.15 will not be assessed the 35% additional ad valorem rate of duty.

IMPORTERS BEWARE: NOTICE ON TRANSSHIPMENT ENFORCEMENT

(a) Any article that U.S. Customs and Border Protection (CBP) determines to have been transshipped for the purpose of evading the duties imposed under Section 2 of this order shall be subject to the following measures:

1. An additional ad valorem duty of 40 percent, in lieu of the otherwise applicable additional duty rate under Section 2 for goods of the country of origin.
2. All other applicable fines or penalties, including those imposed under 19 U.S.C. § 1592 (relating to fraud, gross negligence, or negligence in customs transactions); and
3. All other United States duties, fees, taxes, exactions, or charges that would otherwise apply to goods of the country of origin.

CBP shall not permit mitigation or remission of penalties assessed for transshipped goods determined to be in violation of this order, to the extent consistent with applicable law.

The Secretary of Commerce and the Secretary of Homeland Security, acting through the Commissioner of CBP, and in consultation with the United States Trade Representative, shall publish a list every six (6) months identifying:

• Countries, and

• Specific facilities

that have been used in transshipment or circumvention schemes. This list shall be made publicly available and is intended to inform:

• Public procurement decisions.

• National security and investment reviews; and

• Commercial supply chain due diligence practices.

As more unfolds we will continue to keep everyone updated and informed. You can read The Official White House Briefing.

For any questions or further clarification, feel free to reach out to your account representative at Western Overseas.