Adjusted Reciprocal Tariff Rates + Canada Fentanyl Tariff Change
Please see the links at the bottom of this article to review the full text of the Executive Order and Fact Sheet pertaining to this information. Here are the key highlights:
- Goods from all countries listed in Annex I below will be subject to an additional reciprocal tariff, effective as follows:
- If cargo sails on the final vessel destined for the United States prior to August 7 and is cleared prior to October 5, it will be exempt from the adjusted reciprocal tariffs.
- If cargo sails on the final vessel destined for the United States prior to August 7 and is entered October 5 or after, it will be subject to the adjusted reciprocal tariffs.
- If cargo sails August 8 or after, it will be subject to the adjusted reciprocal tariffs.
- Any cargo cleared prior to 7 days after the date of this order will be exempt from the adjusted reciprocal tariffs.
- See Annex I in the Executive Order for the country-specific rates.
- Goods from any country not listed in Annex I will be subject to an additional 10% reciprocal tariff, effective for goods entered for consumption 7 days after the date of this order.
- European Union Special Rates
- If the regular chapter duty rate is 15% or greater, then no additional reciprocal tariff will be applied.
- If the regular chapter duty rate is less than 15%, then the total reciprocal tariff applied will be 15% (based on the sum of the regular duty rate plus whatever additional amount of ad valorem rate that is necessary to bring the total to 15%).
- Canada
- Canadian goods that are currently subject to the 25% Fentanyl tariff will be subject to a 35% Fentanyl tariff, effective for products entered August 1 and after.
Articles determined by CBP to be transshipped to evade duties (routed through a country with a lower duty rate) will incur:
- An additional 40% percent duty
- Other applicable fines or penalties, including those under 19 U.S.C. 1592.
- Any other U.S. duties, fees, taxes, exactions, or charges applicable to goods from the country of origin.
- CBP will not mitigate or remit penalties for imports found to be transshipped to evade duties, as per applicable law.
- The adjusted reciprocal tariffs do not change or replace any other previously announced tariffs such as Section 232, Section 301, or Fentanyl.
- The reciprocal rates are stacking on top of other duties, except for the previously established exemptions.
Count on us to keep you informed every step of the way. Should you have any questions or need strategic guidance, your Taggart team is ready to assist. Thank you for your continued partnership! Together, we’ll navigate today’s dynamic landscape to help you meet these challenges.
Links:
Executive Order: Further Modifying the Reciprocal Tariff Rates
