08/01/2025
U.S. Updates Tariff Schedule with New Modifications and Trade Partner Agreements
Check out this week's Customs Corner to read about the updated tariff schedule, increased tariffs on Canada imports, and more.
Trade and Customs Updates
1) U.S. Updates Tariff Schedule with New Modifications and Trade Partner Agreements
The United States will implement revised reciprocal tariffs starting August 7, 2025, with exemptions for goods already in transit before that date and entered before October 5, 2025. Annexes I and II of the Executive Order outline the updated duty rates—including a minimum 15% tariff on select EU goods—and adjustments for countries without finalized trade agreements, while also suspending certain HTSUS headings to align with the new structure.
The United States has announced upcoming modifications to the reciprocal tariffs that will take effect seven days after the order's issuance (August 7, 2025). Goods loaded onto a vessel at the port of loading and in transit on the final mode of transit before 12:01am eastern time on August 7, 2025, and entered for consumption or withdrawal before 12:01am eastern time October 5, 2025, are exempt from the additional duties and will remain subject to the current 10% tariffs.
The modified rates are included in Annex I to the Executive Order. The President notes that some foreign trading partners listed in Annex I of this order have either reached or are close to finalizing significant trade and security agreements with the United States. Until these agreements are finalized, and further orders are issued to formalize their terms, goods from these partners will continue to be subject to the additional ad valorem duties specified in Annex I.
For European Union goods, tariffs will be adjusted to ensure a minimum total duty rate of 15% for items with a current rate below that threshold, while goods with rates at or above 15% will not incur additional duties.
Countries not listed within Annex I will face a 10% additional duty as per Executive Order 14257, as amended. Additionally, certain HTSUS headings will be suspended and replaced to align with these new tariff structures once the changes in Annex II to the Order are implemented.
A CSMS has not yet been issued for this Executive Order.
Reference:
Fact Sheet: President Donald J. Trump Further Modifies the Reciprocal Tariff Rates – The White House
Further Modifying the Reciprocal Tariff Rates – The White House
Fact Sheet: The United States and European Union Reach Massive Trade Deal – The White House
2) U.S. Increases Tariffs on Canada Imports to 35% Amid Ongoing Trade Adjustments
The U.S. has increased Canada tariffs from 25% to 35% on certain imports starting August 1, 2025, while targeting transshipment practices with additional penalties, and maintaining existing trade rules and provisions.
The United States announced an increase in tariffs on specific imports from Canada. Under the revised Executive Order 14193, the additional ad valorem duty on affected goods will rise from 25% to 35%, effective August 1, 2025.
The order maintains existing provisions from previous Executive Orders 14193 and 14231 and ensures that rules regarding the stacking of tariffs, as defined in Executive Order 14289, remain in force.
Additionally, the order targets transshipment practices, particularly concerning Canadian goods that do not originate under the USMCA. Such goods, if found to be transshipped to avoid duties, will face a 40% tariff, alongside other possible fines and penalties.
Goods that qualify under USMCA continue to remain not subject to the IEEPA tariffs.
The applicable HTS can be found in CSMS # 65798609
Reference:
CSMS # 65798609 - Update - Additional Duties on Imports from Canada
3) Customs User Fees Effective October 1, 2025
CBP has provided official notice of the Customs User Fee Changes that will go into effect October 1, 2025.
Following the General Notice (90 FR 34665) issued on July 23, 2025, changes to specific customs user fees and related limits, as outlined in 19 U.S.C. § 58c, will become effective on October 1, 2025.
The General Notice may be accessed at:
https://www.federalregister.gov/documents/2025/07/23/2025-13869/customs-user-fees-to-be-adjusted-for-inflation-in-fiscal-year-2026-cbp-dec-25-10
- The Merchandise Processing Fee (MPF) ad valorem rate of 0.3464% will NOT change.
- The MPF minimum and maximum for formal entries (class code 499) will change.
- The minimum will change from $32.71 to $33.58; and
- The maximum will change from $634.62 to $651.50.
Reference:
CSMS # 65741993 - Information on Customs User Fee Changes Effective October 1, 2025
4) Fall 2025 Customs Broker License Exam Registration Information
CBP has posted registration information for the October 2025 Customs Broker License Exam.
Registration for the Customs Broker License Exam (CBLE) scheduled for October 22, 2025, will begin on Monday, August 11, 2025, at 12:01 a.m. Eastern Time and will close on Wednesday, September 10, 2025, at 4:30 p.m. Eastern Time. Registration links are available in the CBLE Registration Information section on the Customs Brokers webpage of CBP.gov, where additional details and resources about the CBLE can also be accessed.
Reference:
CSMS # 65740065 - Customs Broker License Exam (CBLE) Fall 2025 Registration Information
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