Tariff Update
In the words of Dragnet's Sergeant Joe Friday, here are "just the facts". Truth (or facts) be told, for whatever it is worth, the actor Jack Webb never actually said those exact words "Just the facts, ma'am", in the 1950s TV show Dragnet, but came pretty close with "All we want are the facts, ma'am".
So here goes with a simplified version of complicated matters. We will continue to keep you updated when specific changes to tariffs move from the social media space to actual, concrete EOs and proclamations.
US – EU Trade Deal – starting August 1st, a 15% all-inclusive tariff ceiling applies to all products coming from the EU into the US with the exception of the 50% sectoral tariffs on steel, aluminum & copper which will remain in effect rather than 15%. The other exception is if a product has a “normal” duty rate that is higher than 15%. In that case the higher duty rate will apply with no additional tariff being applicable. Any HTS numbers with a "normal"duty rate less than 15% gets bumped up to a flat 15% total duty.
Brazil – starting August 6th, additional 40% tariff on top of the existing 10% reciprocal tariff. Shipments that depart prior to August 6th & arrive by October 4th are exempt from the extra 40%.
Articles in Annex I of this specific Executive Order (EO) are exempt from the extra 40%. This list includes Brazil nuts, orange pulp & juice, certain ores, oils and rubber products to name a few.
Canada – starting August 1st the tariff increased from 25% to 35%. Goods that qualify under the USMCA are not subject to the IEEPA Canada tariffs.
China – tariff decision delayed until August 12th to allow for further negotiations.
Mexico – trade talks extended 90 days so the proposed 30% as of August 1st is not in effect.
Indonesia – 19% tariff
Vietnam – 20% tariff
Other Countries Without Trade Deals - starting August 6th & until each country negotiates their own trade deal, the reciprocal tariff specific to each country is based upon Executive Order. Shipments that depart prior to August 6th & arrive by October 4th are exempt from these country-specific reciprocal tariffs & will instead pay the existing 10% reciprocal tariff during that time period on top of the "normal"duty rate that applies to each HTS number.
Section 232 Copper – starting with shipments entered for consumption on August 1st, 50% additional duties will be assessed to the value of the copper content of a product, while the non-copper content will be subject to the IEEPA reciprocal tariffs.
The 50% tariff does not apply to products subject to the Section 232 autos/parts tariffs.
De Minimis– starting August 29th the de minimis rule (duty free treatment for shipments under $800 going directly to individuals) is eliminated for all countries.