The White House
A Complete Guide by Stile Associates – Your Trusted Customs Brokerage Partner
On August 1, 2025, the White House issued a sweeping executive order titled:
“Further Modifying the Reciprocal Tariff Rates.”
This new directive, building on Executive Order 14257, brings significant changes to how the United States levies import tariffs on foreign goods. These changes are immediate, strategic, and country-specific — and they signal a powerful shift in U.S. trade policy.
Key Takeaway:
If you import goods into the U.S., your costs, suppliers, and compliance protocols may be directly affected.
Let’s break down what’s changing and how it will impact your business.
What’s in the Order?
1. Country-Specific Tariffs (Annex I)
For the first time, the U.S. is imposing unique tariff rates for dozens of countries, based on their cooperation in trade and national security matters.
Tariff rates range from 10% to 41%, depending on:
- Each country’s trade history with the U.S.
- Whether they have reached or are close to reaching trade/security agreements
- Their level of alignment with U.S. policy
Examples:
- Brazil: +10%
- India: +25%
- Laos & Myanmar: +40%
- Switzerland: +39%
- European Union: All goods now have a minimum 15% duty if their current rate is under 15%.
✅ Goods from friendly partners face lower or zero new duties.
⚠️ Countries with imbalanced trade or national security gaps face steep increases.
👉Tariffs apply on top of existing HTS Column 1 Duty Rates.
👉 Importers must now factor in both origin and classification.
See the full Annex I table here.
2. New HTSUS Structure (Annex II)
To enforce the above, the Harmonized Tariff Schedule of the United States (HTSUS) has been:
- Overhauled with country-specific codes (e.g. 9903.02.01 to 9903.02.71)
- Old tariff subheadings (9903.01.43 through 9903.01.76) have been terminated
- Each tariff rate now applies directly to the corresponding HTS code of the product plus the new ad valorem duty from Annex I
- For EU goods with specific/compound duties, a method is provided to calculate the ad valorem equivalent.
- 📘 Example: A good from the EU with a $0.50/kg duty and a $10 value has a 5% ad valorem equivalent rate. If under 15%, it gets bumped up.
👉 What does this mean?
You must now know both the product’s HTS code and its country of origin to calculate duties correctly.
See the full Annex II table here.
3. Transit Period Exemption
Goods already loaded on a vessel before August 7, 2025 and entering the U.S. before October 5, 2025 will follow the previous tariff structure.
This gives importers a brief window to receive in-transit goods without being penalized.
4. Massive Penalties for Transshipping
Trying to route goods through another country to avoid these duties? Think twice.
Customs and Border Protection (CBP) will:
- Impose a 40% duty on goods found to be transshipped
- Deny all requests for mitigation or leniency
- Publicly publish the names of facilities and countries found to be violating the order
Stile’s Expert Analysis:
This policy represents a historic realignment of how the U.S. handles international trade.
- It’s No Longer Just About Products — It’s About Partners
This order doesn’t just affect what you import — it affects who you buy from. Tariff rates now follow foreign policy alignment, not just industry classification. - Cost Increases Are Inevitable
With most countries facing new duties of 15% or more, importers must:
• Recalculate landed costs
• Revisit pricing structures
• Reassess supplier relationships - Compliance Is Now Non-Negotiable
The risk of using the wrong HTS code or hiding origin is no longer just regulatory — it’s financially devastating.
What You Should Do Now
1. Review Your Supply Chain
- Where are your goods coming from?
- Are any of your suppliers in the Annex I list?
2. Update HTS Classifications
- Make sure your codes are current and compliant
- Use the new subheadings to apply correct duties
3. Communicate with Overseas Partners
- Some suppliers may not be aware of these changes
4. Avoid Transshipment Practices
- The 40% penalty is real and irreversible
5. Ask Stile for a Compliance Check
- Our customs brokers can help you map exposure, review tariff codes, and forecast new duty obligations
What Else Is Inside the Executive Order?
Here’s a quick summary of Sections 4 through 7, of the Executive Order titled “Further Modifying the Reciprocal Tariff Rates,” issued by the White House on August 1, 2025. Often overlooked but critical for understanding how this will be enforced:
Section 4 – Implementation
The order authorizes key agencies (Commerce, Homeland Security, USTR, State, Treasury) to:
- Amend regulations
- Suspend or modify notices in the Federal Register
- Use emergency powers under IEEPA
Every agency is empowered to act swiftly.
Section 5 – Monitoring & Recommendations
The Secretary of Commerce and USTR will:
- Monitor compliance from trading partners
- Recommend new actions if retaliation occurs or partners fail to meet U.S. expectations
- Inform the President of needed escalations or resolution
This means the tariff list is subject to regular updates.
Section 6 – Severability
If any part of the order is invalidated by courts, the rest remains in force.
It’s designed to survive legal challenges.
Section 7 – General Provisions
- Doesn’t override existing agency authority
- Doesn’t create enforceable rights
- Will be published at the expense of the USTR
This ensures smooth administrative rollout without altering broader U.S. law.
Our Final Thought
“This is not just about goods. It’s about trust, alignment, and strategy. Global trade is entering a new era — and importers must be smarter, faster, and more compliant than ever before.”
At Stile Associates, our licensed customs experts are ready to:
- Analyze your current tariff exposure
- Review HTS classifications
- Monitor real-time regulatory changes
- Help you respond strategically, not reactively
Final Call to Action:
Ready to take control of your shipping costs?
Let’s talk. Contact Stile Associates for a free consultation and let our experts audit your current process, to help you streamline your operations, stay compliant, and save money.
Choose Stile, Your Smartest Move in Global Trade
Whether you’re shipping across the country or across continents, Stile Associates is your strategic partner for building a smarter, more resilient supply chain.
Since 1968, we’ve been delivering peace of mind and performance. Let’s take your logistics to the next level together.
Visit us at www.stileintl.com
Or contact: stevenheid@stileintl.com
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