Trade Alert: New Tariff Rates Effective August 1, 2025
As you know over the last several days, President Trump has issued a series of letters regarding a possible increase in reciprocal tariffs which are set to take effect on August 1, 2025. On August 1, 2025, countries not named in the letters will receive the 10% baseline reciprocal tariff. For countries issued letters the new tariff rate will apply, unless there is a negotiated agreement. The following is a list of the updated reciprocal tariff rates:
Country | Tariff Rate | Country | Tariff Rate |
Algeria | 30 % | Libya | 30 % |
Bangladesh | 35 % | Malaysia | 25 % |
Bosnia and Herzegovina | 30 % | Mexico | 30 % |
Brazil | 50 % | Moldova | 25 % |
Brunei | 25 % | Myanmar | 40 % |
Cambodia | 36 % | Philippines | 20 % |
Canada | 35 % | Serbia | 35 % |
European Union | 30 % | South Africa | 30 % |
Indonesia | 32 % | South Korea | 25 % |
Iraq | 30 % | Sri Lanka | 30 % |
Japan | 25 % | Thailand | 36 % |
Kazakhstan | 25 % | Tunisia | 25 % |
Laos | 40 % |
It is important to point out that the situation remains fluid with the ongoing negotiations and additional executive actions will be needed. Currently, the previous Executive Order (EO) “Addressing Certain Tariffs on Imported Articles” issued on April 29, 2025 is still in effect (https://aec.org/aluminum-section-232-fact-sheet). Below is a summary of the EO:
If a good is subject to the Section 232 tariffs on passenger cars, light trucks, and automotive parts, it will not simultaneously owe:
The IEEPA tariffs on Mexican/Canadian product, or
The 232 tariffs on steel and/or aluminum goods.
If a good is subject to the IEEPA tariffs on Mexican/Canadian products, it will not simultaneously owe the 232 tariffs on steel/aluminum goods.
If a good is subject to the steel tariffs, and the same good is also subject to the aluminum tariffs (or vice versa), both those sets of tariffs will continue to apply to the good.
This latest EO does not authorize any “de-stacking” for other countries outside of Canada and Mexico. Therefore, imports from China (covered under the current China I Aluminum Extrusion Orders) would receive the current; AD/CVD rates, 232 Aluminum tariffs, 301 duties, IEEPA and Reciprocal tariffs.
For the rest of the world (outside of Canada, China, and Mexico) the aluminum products they ship will be subject to the 232 Aluminum tariffs, the Reciprocal tariffs exempted those same aluminum products from also being included in any reciprocal tariffs.
In addition to the revised tariff rates the letters also included language regarding warnings and transshipments and applied different tariff rates to those goods as well. As always we continue to monitor these events and work with the DOC, CBP, and USTR to understand the implications of these actions and provide guidance.
