Executive Order Tariff Updates – August 2025

Canada

On July 31, 2025, the White House announced in an Executive Order (EO) the increase in duties from 25% to 35%, effective August 1, 2025.  Goods covered under the United States Mexico Canada Agreement (USMCA) are exempt from this increase.  The applicable tariff number remains 9903.01.10 per CSMS # 65798609.

Goods that do not qualify for USMCA and are determined by U.S. Customs and Border Protection (CBP) to have transshipped to evade duties will be subject to a 40% duty with the potential for additional fines and penalties.  

Mexico

The Administration announced that negotiations with Mexico are ongoing.  Additionally, Mexico's tariff on illicit drugs – imposed under the International Emergency Economic Powers Act (IEEPA) via EO - will remain unchanged, as the original order does not specify an expiration date.

IEEPA Reciprocal

On July 31, 2025, the White House issued an EO modifying the duty rates for specific countries, effective August 7, 2025.  These tariff rates will remain until further negotiations are concluded.  We expect country specific Executive Orders to be issued with details similar to the United Kingdom EO.

Country-Specific Rates – Annex 1

• Specific country rates and tariff numbers have been detailed in Annex 1, ranging from 10% to 41%.

  • European Union:

    • Goods with a Column One duty rate above 15% will not have an additional reciprocal tariff. Only the Column One rate of duty would apply.
    • Goods with a Column One duty rate below 15% will incur an additional reciprocal tariff equal to the difference between 15% and the Column One rate. 
      • Example, if you’re importing plastic cups with a Column One rate of 5%, that 5% would apply and you would have to pay a reciprocal tariff of 10% (15% minus the column one rate of 5%). 

  • Brazil

  • A 10% reciprocal tariff applies, in addition to the IEEPA EO issued on July 30, 2025.
• Countries not listed in Annex 1 will be subject to an additional 10% duty. 

In Transit Exception

Goods loaded on the mother vessel and in transit on the final mode before 12:01 a.m. ET on August 7, 2025, and entered for consumption (or withdrawn from warehouse for consumption) before 12:01 a.m. ET on October 5, 2025, will be subject to the previous duty rate level.  Other modes are not permitted for this exception.

Transshipment

Goods determined to be transshipped to evade duties will be subject to a 40% duty with the potential for additional fines and penalties.  

Further implementation guidance will be provided from CBP.  Please reach out to your C.H. Robinson representative with any questions.