Latest Developments in the U.S. Trade War: What Importers Need to Know

With a number of announcements from U.S. President Donald Trump this month, here is a roundup of the latest tariff updates taking effect in August 2025:

US De Minimis Duty-Free Exemption Ends

U.S. President Donald Trump signed the “Suspending Duty-Free De Minimis Treatment for All Countries” Executive Order of July 30, 2025, which eliminates the “de minimis” entry, also known as Section 321 clearance, a duty-free exemption for shipments entering the U.S. valued at $800 USD or less, effective August 29, 2025 on or after 12:01 a.m. Eastern Daylight Time.

• Affects more than 4 million packages entering the U.S. daily
• All standard documentary requirements are now in place for similar high-value shipments
• Customs clearance must now be completed by a licensed customs broker or the importer directly with US Customs

Revised Reciprocal Tariffs

U.S. President Donald Trump’s revised Reciprocal Tariffs went into effect 7 days after the date of the Executive Order of July 31^st – i.e. on August 7^th, at 12:01 a.m. Eastern Daylight Time (EDT).

Please note the following additional information:

• European Union (EU):
  • 15% cap on the Reciprocal Tariff
    • If a good has a regular US import duty rate under 15%, the total duty on that line item will be the regular Duty Rate and the Reciprocal duty will bring that lines duty to 15%
    • Ex. HTS 3923.50.0000 has a regular Duty Rate of 5.3%. This would be reported as:
      • 9903.02.20 – 9.7% (Reciprocal Tariff)
      • 3923.50.0000 – 5.3% (Regular Duty Rate)
        • Effective Duty Rate – 15%
  • If a good has a regular US import Duty Rate over 15%, then the reciprocal duty rate will be 0%.
    • Ex. HTS 6201.40.2015 has a regular Duty Rate of 27.7%. This would be reported as:
      • 9903.02.19 – 0% (Reciprocal Tariff)
      • 6201.40.2015 – 27.7% (Regular Duty Rate)
        • Effective Duty Rate – 27.7%
• Brazil:
  • An additional 40% tariff, that is separate from the IEEPA – RECIP, total IEEPA duty on Brazilian goods is now 50%
  • This is also separate from the 301 Investigation that started on July 18^th
  • This includes an exclusion for goods that are already laden onboard the final vessel en route to the U.S., and the exclusion lasts until October 5^th
• Canada:
  • 35% (previously 25%) on all non-CUSMA/USMCA qualifying goods
• Mexico:
  • Reciprocal tariff increase to 30% (currently at 25%), on non-USMCA qualifying goods, paused for 90 days
• China
  • The Revised Reciprocal Tariff rate expected to be announced on August 12, 2025, has been paused until November 10, 2025, while China and the U.S. continue negotiations

50% Section 232 Duties on Copper and Copper Products

U.S. President Donald Trump signed the “Adjusting Imports of Copper into The United States” Proclamation of July 30, 2025, which applies new Section 232 import duties on certain copper products, effective August 1, 2025.

• A 50% ad valorem duty will be applied to the copper content of semi-finished and intensive copper derivative products
  • List of affected HS tariff classifications may be found here

50% Section 232 Duties on 407 new Steel and Aluminum Derivative Products

On Friday, August 15, 2025, at 4:15 pm EDT, the US Department of Commerce issued an additional 407 HTS Codes to the list of steel and aluminum derivative products subject to tariffs under Section 232. The new duties apply to goods entering the U.S. for consumption, or withdrawn from a warehouse for consumption, on or after 12:01 a.m. EDT, August 18, 2025

• These tariffs will apply to the steel and aluminum content of the affected products, while non-steel and non-aluminum content will remain subject to applicable reciprocal or other tariffs.

Guidance from US Customs and Border Security (CBP) may be found here:

• CSMS # 65936570 – GUIDANCE: Section 232 Additional Steel Derivative Tariff Inclusion Products
• CSMS # 65936615 – GUIDANCE: Section 232 Additional Aluminum Derivative Tariff Inclusion Products

Complete HS Tariff Classification Lists:

• Steel HS Tariff Classifications Subject to Section 232 Duties (50 percent) can be found here.
• Aluminum HS Tariff Classifications Subject to Section 232 Duties (50 percent) can be found here.

There are no exceptions for in-transit shipments.

Commodities which are made from steel that was melted and poured (or smelted and cast for aluminum) in the United States are not subject to these additional tariffs.

For more information, visit the Trade War Tracker on our website or contact Brian Rowe, Director – Customs Compliance & Regulatory Affairs.