Global Trade Advisory - August 1st, 2025 - Trade Update

BREAKING UPDATE Executive Summary

It's been a dramatic last 24 hours in trade, and we're not going to be able to sufficiently unpack all of that in one email, but I'll try to hit the highlights. Please see below for all of the executive orders from the last day.

Five Major Executive Orders Issued

Section 232 Copper Tariff of 50% Announced: Adjusting Imports of Copper into the United States – The White House
New Reciprocal Rates Announced: Further Modifying the Reciprocal Tariff Rates – The White House
Suspending Duty-Free De Minimis for All Countries: Suspending Duty-Free De Minimis Treatment for All Countries – The White House
50% Tariff on Brazil: Addressing Threats to The United States by the Government of Brazil – The White House
35% Tariff on Canada: Amendment to Duties to Address the Flow of Illicit Drugs Across Our Northern Border – The White House

🚨 Immediate Action Required: Reciprocal Tariffs

Announced 14 Hours Ago - New US Tariffs take effect August 7, 2025

A new Executive Order issued July 31st modifies and expands the tariff structure for reciprocal tariffs. These changes take effect 7 days after issuance and introduce a tiered duty framework based on bilateral trade negotiations and alignment with US economic and national security objectives.

Key Tariff Changes - Effective August 7, 2025

European Union (EU)

• Goods with a Column 1 Duty Rate <15% will now be topped up to a total of 15%
• Goods with a Column 1 Duty Rate ≥15% will not face additional duties beyond existing rates
• It is unclear how CBP will mechanize this, and many questions remain on how this will be collected, as duties have never been assessed in this way before

Countries Listed in Annex I

• Remain subject to elevated ad valorem duties outlined in Annex I until trade/security deals are finalized
• These rates replace the previously imposed duties under EO 14257

All Other Countries

• Subject to a 10% additional ad valorem duty under the original EO 14257 terms

Transshipment Penalties

• Goods found to be rerouted to evade tariffs will face a 40% penalty tariff

⏰ Critical Effective Dates

• Tariffs apply to goods entered for consumption or withdrawn from warehouse starting 7 days after the order is signed
• Exception: Goods already in final mode of transit before the effective date and arriving before October 5, 2025 will be charged under the previous duty schedule

Also, see key points below on all of the executive orders listed above from the last two days. A more detailed analysis is forthcoming, however, it going to take a few days to sort through all of this.

Detailed Executive Order Analysis

50%

1. Adjusting Imports of Copper into the United States

Proclamation date: July 30, 2025

Effective: August 1, 2025 at 12:01 a.m. EDT

Rate: 50%

Scope: Semi-finished copper and copper-intensive derivatives (e.g., pipes, wires, fittings, cables, connectors, electrical components); refined copper exempt and tariffs do not stack

Purpose: Declares national security threat under Section 232. Aims to bolster U.S. copper fabrication, resilience, domestic investment, and reduce reliance on foreign supply.

10-41%

2. Further Modifying the Reciprocal Tariff Rates

Order date: July 31, 2025

Effective: August 7, 2025 at 12:01 a.m. EDT

Rate: Baseline 10%, varies by country

Scope: Approximately 67–69 countries listed in Annex II with specific rates. Examples: India 25%, Pakistan 19%, Iraq 35%

Purpose: Aims to rebalance trade deficits and enforce reciprocal trade fairness. Generates increased revenue but raises costs and global trade tensions

$800→$0

3. Suspending Duty Free De Minimis Treatment for All Countries

Order date: July 30, 2025

Effective: August 29, 2025

Scope: Eliminates prior $800 threshold for duty-free status on low-value commercial shipments worldwide

Impact: Addresses evasion of reciprocal tariffs and drug-smuggling risks tied to de minimis loophole—98% of narcotics seizures by count involve such shipments. Expected to significantly impact e-commerce platforms (eBay, Etsy, Amazon)

Transition: Six month period with fixed duties ($80–200/item) before full ad valorem calculation

50%

4. Addressing Threats to the United States by the Government of Brazil

EO date: July 30, 2025

Effective: Immediately (no delayed effective date specified)

Rate: Additional 40% on top of 10% reciprocal for 50% total

Scope: Additional 40% tariff on imports from Brazil, bringing total duties to 50% on specified products

Purpose: In response to Brazilian government actions deemed an extraordinary threat to U.S. national security, foreign policy, and economy. May trigger retaliatory trade measures

35%

5. Amendment to Duties to Address the Flow of Illicit Drugs Across Our Northern Border

EO Amendment date: March 6, 2025 (14231), reaffirmed July 31, 2025

Effective: August 1, 2025

Rate: 35% (increased from 25%)

Scope: Canada-origin goods: raises additional ad valorem duty from 25% to 35%; reduces prior 25% on potash to 10%; USMCA-eligible goods exempt

Purpose: Part of declared national emergency over fentanyl and illicit drug flow from Canada. Seeks to pressure Canadian enforcement while preserving automotive-industry exemptions

📋 Next Steps for Trade Professionals

Trade-IQ is monitoring these developments and preparing comprehensive analysis. We recommend:

• Review your current import portfolio against these new tariff structures
• Calculate immediate cost impacts for shipments entering after August 7, 2025
• Assess transshipment risks and supply chain compliance
• Consider sourcing alternatives for high-impact products
• Prepare for de minimis elimination on August 29, 2025