Effective 12:01 a.m. on August 8, 2025, the U.S. government will reinstate increased tariff rates on a number of trading partners, as part of the ongoing implementation of its “reciprocal” tariff policy first introduced in April.
Tariff Rates and Affected Countries
Details on the new rates and the countries affected can be found in Annex 1 of the Executive Order. These rates are being reinstated following a 90-day pause and an additional 30-day extension, during which time the U.S. administration engaged in negotiations resulting in multiple trade agreements. The revised tariff rates outlined in Annex 1 reflect those negotiations but do not include sector-specific agreements made on a country-by-country basis.
- Canada will see its tariff rate increase from 25% to 35%, effective 12:01 a.m. on August 1, 2025, for all goods that do not qualify under the United States-Mexico-Canada Agreement (USMCA).
- Imports from the European Union will be subject to a universal 15% tariff rate, replacing previous Most-Favored Nation (MFN) rates. This universal rate was agreed upon through direct negotiations between Washington and Brussels. However, the Executive Order does not outline sector-specific exemptions (e.g., for automobiles).
- Mexico’s tariff rate will remain unchanged.
- Section 232 goods (e.g., certain metals) will not be subject to the higher tariffs imposed under the International Emergency Economic Powers Act (IEEPA) for purposes of the value attributable to the metal content subject to Section 232 tariffs.
Tariff Stacking
With the exception of the EU (as noted above), reciprocal tariffs will be applied in addition to existing MFN tariffs and any sector-specific tariffs imposed under Section 232 (e.g., those on steel, aluminum, copper, or autos). This cumulative approach could significantly increase the total duty liability on affected imports.
Transshipment Enforcement
U.S. Customs and Border Protection (CBP) has issued a warning to importers: it will closely monitor for transshipment practices intended to circumvent higher tariffs. Goods routed through a lower-tariff country without substantial transformation will be subject to a 40% duty rate retroactively, along with possible fines.
IEEPA Legal Challenges
The use of IEEPA to impose tariffs is currently being challenged in U.S. federal court by private sector groups and state representatives. Livingston trade experts recently attended the appellate hearing, where both sides presented oral arguments. You can listen to the podcast or read our experts’ article for further insight.
Impact on Customs Surety Bonds
With tariffs rising to 25% or more, many importers may find their duty exposure exceeding the value of their current customs bonds. We recommend proactively reviewing your bond coverage and adjusting as necessary. [Click here for more information.]
How Livingston is Responding
We recognize the uncertainty these measures create and are committed to supporting your business. Livingston International is rapidly updating our internal processes to reflect the latest tariff regulations and ensure all duties owed to U.S. CBP are accurately calculated and reported.
These additional duties—and any related charges—will appear on your next invoice from Livingston, providing a clear view of the financial impact.
Please note: due to increased scrutiny by CBP officials following recent tariff changes, border processing times have lengthened. We recommend advising your carrier partners to monitor wait times at specific border crossings prior to departure.Bottom of Form
Need More Information?
Should you have any questions regarding the impact of these tariffs to your customs process, billing or responsibilities as an importer or exporter, please contact your account representative.