New Tariff Rates Effective August, 7th 2025

Key Tariff Changes Effective August 7, 2025

A new chapter in U.S. trade policy began on August 7, 2025. A series of sweeping tariff measures—introduced through late-July Executive Orders— are now in force, reshaping the landscape for freight forwarders, importers, and global supply chain stakeholders

These updates bring a reciprocal tariff regime, remove long-standing duty exemptions, and tighten transshipment enforcement—all requiring immediate operational adjustments.

Below is a breakdown of the most critical updates, exemptions, and next steps for logistics professionals.

Changes Taking Place

1. Reciprocal Tariff Framework Introduced

• 10% baseline tariff now applies to most countries without specific trade agreements, on top of MFN (Most Favored Nation) rates.
• 15%–50% higher country-specific tariffs for over 60 nations (see Annex I of the Executive Order).
• EU-origin goods: Conditional 15% tariff if MFN rate is below that threshold.

2. De Minimis Exemption Eliminated for Non-Postal Imports (Effective August 29, 2025)

• The $800 de minimis threshold will be eliminated on August 29, 2025 for non-postal shipments.
• All non-postal shipments valued at $800 or less must be formally entered via ACE and will be subject to:
  • Ad valorem duties (based on new reciprocal tariffs)
  • Standard customs processing requirements
• Postal shipments (sent via international postal networks) will face transitional treatment:
  • Phase 1 (Aug 29, 2025 – Feb 28, 2026): Flat duties of $80–$200 per item based on country of origin
  • Phase 2 (Starting March 1, 2026): Full ad valorem tariffs based on product value and country-of-origin tariff schedule

Note: De minimis was already eliminated for China and Hong Kong on May 2, 2025.

3. Copper Tariffs Raised to 50%

• Semi-finished and derivative copper products now face 50% tariffs (effective August 1, 2025).
• Excludes: Refined copper, raw copper ores, concentrates, and copper scrap.
• New domestic content rules expected within 90 days from the Department of Commerce.

Country-Specific Highlights

Mexico

• 90-day extension delays the 30% increase originally planned for Aug 1.
• Current tariffs:
  • 25% on vehicles (fentanyl emergency-related)
  • 50% on steel, aluminum, and copper
• Extension negotiations ongoing; no formal executive order yet issued.

Canada

• 35% tariff notification under Reciprocal IEEPA for Aug 1 — pending CBP or White House confirmation.
• USMCA-originating goods are expected to be exempt (unconfirmed).

India

• 30% reciprocal tariffs on most goods, effective Aug 7.
• Strategic categories may face tariffs up to 40%.
• Goods in transit before effective date may qualify under transitional provisions.

Stricter Transshipment Enforcement

• 40% penalty tariff on goods deemed to be transshipped to avoid tariffs.
• Violations may also result in fines and legal sanctions.

Tariff Exemptions

• Exempt from new higher tariffs:
  • Goods in transit before Aug 7 (per Executive Order definition)
  • Customs entries filed before Oct 5, 2025
  • Items already covered by Section 232 tariffs
• Articles in Annex II, including:
  • Pharmaceuticals
  • Semiconductors
  • Lumber
  • Critical minerals
  • Select energy products

Practical Guidance for Forwarders & Supply Chain Teams

1. Review At-Risk Shipments Immediately

• Audit in-transit shipments
• Confirm HTSUS classifications & country-of-origin documents
• Identify and mitigate transshipment risks

2. Update Compliance & Customs Procedures

• Prepare for August 29: Remove reliance on de minimis for small-parcel imports from all countries
• Ensure timely, accurate customs entries for all shipments
• Update systems for formal entry processing of previously exempt shipments

3. Strengthen Client & Supplier Contracts

• Add flexible terms to manage tariff volatility
• Clarify cost liability for changes in rates or sourcing

4. Adjust Logistics Strategy

• Prepare to shift routes or modes
• Consider bonded warehouses, duty suspension zones, and eFBLs

5. Engage Clients Proactively

• Reassess sourcing strategies, pricing models, and production timelines
• Develop contingency plans for further policy changes

Final Thoughts

The August 2025 tariff updates mark a major shift in U.S. trade policy. While certain measures remain fluid, the immediate impact is clear: businesses must adapt quickly to mitigate risk and maintain supply chain stability.

Key upcoming date: August 29, 2025 — when de minimis elimination takes full effect globally.

At PGL, we’re here to interpret these changes, adjust workflows, and protect your bottom line. Our team operates 24/7/365—ready to keep your freight moving