|
Trump Executive Order Imposes Reciprocal Tariffs on Countries Without Trade Deals; Canada Receives 35% Tariff
President Trump issued an Executive Order this evening, July 31, which sets in motion the imposition of reciprocal tariffs on most countries which have not reached trade deals with the U.S.
“Some trading partners have agreed to, or are on the verge of agreeing to, meaningful trade and security commitments with the United States, thus signaling their sincere intentions to permanently remedy the trade barriers that have contributed to the national emergency declared in Executive Order 14257, and to align with the United States on economic and national security matters. Other trading partners, despite having engaged in negotiations, have offered terms that, in my judgment, do not sufficiently address imbalances in our trading relationship or have failed to align sufficiently with the United States on economic and national-security matters. There are also some trading partners that have failed to engage in negotiations with the United States or to take adequate steps to align sufficiently with the United States on economic and national security matters,” the Executive Order said.
The Executive Order said that the tariffs become effective for goods entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. ET seven days after the date of this order (July 31), except that goods loaded onto a vessel at the port of loading and in transit on the final mode of transit before 12:01 a.m. ET seven days after the date of this order (July 31), and entered for consumption, or withdrawn from warehouse for consumption, before 12:01 a.m. ET on Oct. 5, 2025
Read the full Executive Order for more details on the application of these tariffs by individual country here.
In addition, this evening, July 31, President Trump signed an Executive Order, according to this Fact Sheet, to increase the tariff on Canada products from 25% to 35%, with the higher tariff set to go into effect at 12:01 a.m. ET on Aug. 1.
“Canada has failed to cooperate in curbing the ongoing flood of fentanyl and other illicit drugs, and it has retaliated against the United States for the President’s actions to address this unusual and extraordinary threat to the United States,” the Executive Order said. “In response to Canada’s continued inaction and retaliation, President Trump has found it necessary to increase the tariff on Canada from 25% to 35% to effectively address the existing emergency.”
Goods qualifying for preferential tariff treatment under the U.S.-Mexico-Canada Agreement (USMCA), however, continue to remain not subject to the IEEPA Canada tariffs. Goods transshipped to evade the 35% tariff will be subject, instead, to a transshipment tariff of 40%.
The NCBFAA Customs Committee and Counsel of Sandler, Travis & Rosenberg will monitor the imposition of these reciprocal tariffs and the Canadian tariff, as well as track pertinent Customs and Border Protection (CBP) guidance, and present this information to our members as received.
********
NCBFAA will continue to keep our members updated about the U.S. tariffs through the Monday Morning eBriefing and eblasts, and a dedicated IEEPA Tariffs webpage on our website.
Attention: The Monday Morning eBriefing (MMeB) and other communications of the NCBFAA are the exclusive property of the Association. Unauthorized use by any person or firm which is not a member in good standing is strictly prohibited.
| 
