New Tariffs Announced Impacting 68 Countries, the EU, and More

TGA Members:

A lot has happened in the last 48 hours — including sweeping tariff changes announced by President Trump impacting 68 countries, the European Union, Canada, Mexico, and Brazil, with rates as high as 50%. Please carefully read the full update below.

Adjusted IEEPA Tariff Rates — July 31 Announcement

On July 31, President Trump announced adjusted IEEPA tariff rates for 68 countries and the European Union. 

The Executive Order provides country specific tariffs under Annex 1: 

• Bangladesh 20%
• Cambodia 19%
• Costa Rica 15%
• India 25%
• Indonesia 19%
• Jordan 15%
• Lesotho 15%
• Madagascar 15%
• Malaysia 15%
• Mauritius 15%
• Myanmar 40%
• Nicaragua 18%
• Pakistan 19%
• the Philippines 19%
• South Africa 30%
• Sri Lanka 20%
• Thailand 19%
• Vietnam 20% 

Additional Key Details

• For countries not listed in Annex 1, the reciprocal tariff rate remains at 10%.

• For countries that are part of the U.S/Central America-Dominican Republic Free Trade Agreement (CAFTA-DR), the new tariffs still apply, even if the goods qualify for duty-free treatment under CAFTA-DR.

• The tariffs are stacked on top of normal (MFN) tariffs. For example: U.S. luggage imports from Cambodia – normal tariff (17.6% (textile)/20% (hardsided) + 19% reciprocal tariff = total tariff of 36.6%-39%.

• Despite many rumors to the contrary leading up to yesterday’s Executive Order, as of August 1 at 10:30 AM ET, there are NO new rules of origin in order to obtain the above rates. That means that the longstanding rule that confers “country of origin”, i.e. “substantial transformation”, (e.g. it wasn’t a suitcase before it entered the country but became a suitcase in the country), remains in place.

• However, the Executive Order does state that if an article is determined by U.S. Customs and Border Protection (CBP) to have been transshipped to evade applicable duties, the tariff rate will be adjusted to 40%, along with applicable penalties and duties.

  • Again, there is no definition of “transshipment”. Transshipment, defined under U.S. law as transferring a product from China through Vietnam and claiming it is Made in Vietnam, is already illegal.

• The new tariffs begin for goods loaded onto a vessel destined to the U.S. by August 7 at 12:01 AM.

  • The “on the water” exemption in the Executive Order states:

“These modifications shall be effective with respect to goods entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. eastern daylight time 7 days after the date of this order [August 7], except that goods loaded onto a vessel at the port of loading and in transit on the final mode of transit before 12:01 a.m. eastern daylight time 7 days after the date of this order [August 7], and entered for consumption, or withdrawn from warehouse for consumption, before 12:01 a.m. eastern daylight time on October 5, 2025, shall not be subject to such additional duty and shall instead remain subject to the additional ad valorem duties previously imposed in Executive Order 14257, as amended.”

 
Tariffs on the European Union

• On July 31, in the same Executive Order, President Trump imposed 15% tariffs on U.S. imports from the EU.

• However, the 15% for the EU is “not-stacking”. That means the total tariff rate for all U.S. imports from the EU is 15%, regardless of the underlying normal tariff.

Tariffs on Canada

• On July 31, President Trump announced an adjusted IEEPA tariff rate for Canada of 35%.

• However, goods qualifying under the U.S./Mexico/Canada Agreement (USMCA) remain duty-free.

Tariffs on Mexico

On July 31, President Trump “truthed” that he was extending the current “pause” with Mexico for another 90-days (until October 30).

That means:

• The 25% IEEPA tariff on U.S. imports from Mexico will remain in place.

• USMCA-qualifying products from Mexico will remain duty-free during the extended pause.

Additional Executive Orders (July 30)

• De Minimis Ban: On July 30, President Trump issued an Executive Order banning the ability to use “de minimis” to bring in U.S. imports duty-free, starting August 29.

• Brazil Tariffs: On July 30, President Trump issued an Executive Order imposing 50% reciprocal tariffs on most U.S. imports from Brazil, starting August 6.

Legal Challenge - V.O.S. Selections Case

On July 31, the U.S. Court of Appeals for the Federal Circuit held a hearing regarding V.O.S. Selections, Inc. v. Trump, Case No. 25-1812 to determine the legality of these tariff actions using the International Emergency Economic Powers Act (IEEPA).

How TGA is Advocating / Join Us for Lobby Days

Join us on Capitol Hill for the TGA‑supported “We Pay the Tariffs” Lobby Days. TGA staff will be there, and we strongly encourage all those affected by tariffs to participate.

Dates: September 17-18, 2025
Location: Washington, D.C.

Register here as soon as possible if you plan to attend, and learn more about the initiative here.

What This Means & Next Steps

This week’s announcements answer some questions but also raise many more, and the situation continues to remains fluid.

TGA is actively advocating for member priorities — pushing for details, definitions, and clear phase-in periods for new rules and requirements that we believe are still forthcoming — including advocating that all new tariffs be non-stacking (as is the case with the EU) to eliminate double taxation.

We strongly encourage all those affected by tariffs to register for the “We Pay the Tariffs” Lobby Days, September 17–18 in Washington, DC — a critical opportunity to make your voice heard on these issues.

Stay tuned for updates.

Cover photo by Lance Asper on Unsplash