President Trump Implements Tariffs; Ends “de minimis” Globally

During the last week of July, President Trump issued a series of tariff-related executive actions:

• FURTHER MODIFYING THE RECIPROCAL TARIFF RATES: This Executive Order (EO) updates the “reciprocal” tariff rates imposed under the International Emergency Economic Powers Act (IEEPA), including to reflect the trade deals and tariff letters that the administration has reached with or sent to certain trading partners in recent weeks. A separate but related fact sheet also maintains a minimum reciprocal tariff rate of 10% for countries not covered in the EO.

• AMENDMENT TO DUTIES TO ADDRESS THE FLOW OF ILLICIT DRUGS ACROSS OUR NORTHERN BORDER: This EO increases the trafficking tariff imposed under IEEPA on imports from Canada from 25% to 35%; however, goods that satisfy rules of origin under the United States-Canada-Mexico Agreement (USMCA) will remain exempt from this tariff.

• ADDRESSING THREATS TO THE UNITED STATES BY THE GOVERNMENT OF BRAZIL: This EO imposes an additional 40% tariff under IEEPA on imports from Brazil in response to specific actions taken by the government of Brazil. This tariff applies in addition to the 10% “reciprocal” tariff on imports from Brazil for a cumulative rate of 50%; however, the EO lays out significant exemptions that apply to the additional 40%.

• ADJUSTING IMPORTS OF COPPER INTO THE UNITED STATES: This proclamation imposes a 50% tariff on imports of semi-finished copper products and intensive copper derivative products into the United States under Section 232 of the Trade Expansion Act of 1962.

• SUSPENDING DUTY-FREE DE MINIMIS TREATMENT FOR ALL COUNTRIES: This EO suspends duty-free “de minimis” treatment for low-value shipments entering the United States regardless of their origin. It builds on an earlier Trump administration EO that suspended “de minimis” for goods from China. The One Big Beautiful Bill Act (OBBBA, Pub.L 119-21) sunsets the “de minimis” exemption in July 2027, a date this EO effectively moves forward.

The actions came before the Aug. 1 deadline that the president had set for trading partners to reach trade deals with the United States. The “reciprocal” tariff EO is a key step in implementing the deals the administration reached prior to this deadline. It also implements the rates that the president notified certain trading partners of via a series of letters sent earlier this month.

Notably, President Trump did not issue an EO this week to modify tariffs on imports from Mexico. On July 31, the president posted on social media that he was granting Mexico a 90-day extension to allow negotiations to continue. During this period, Mexico will remain subject to a 25% trafficking tariff imposed under IEEPA, with an exemption for goods that satisfy USMCA rules of origin.

The president also did not issue an EO to modify tariffs on China. U.S. and Chinese negotiators met at the beginning of the week in Sweden, ahead of an Aug. 12 deadline that was set by President Trump. Imports from China remain subject to a 30% IEEPA tariff. Many Chinese imports also remain subject to tariffs up to 25% imposed during President Trump’s first term and maintained by the Biden administration under Section 301 of the Trade Act of 1974.

This client alert provides additional details on and an analysis of these tariff-related executive actions.

FURTHER MODIFYING THE RECIPROCAL TARIFF RATES (Executive Order, Fact Sheet)

This EO updates the “reciprocal” tariff rates imposed under the International Emergency Economic Powers Act (IEEPA), including to reflect the trade deals and tariff letters that the administration has reached with or sent to certain trading partners in recent weeks.

Previously, on April 2, or “Liberation Day,” President Trump issued an EO to impose a 10% baseline tariff on all nations as well as implement a country-specific reciprocal tariff regime. He later paused the implementation of the higher reciprocal tariffs until July 9, 2025, and then again until Aug. 1, 2025. However, the Trump administration emphasized that the deadline would not be extended past Aug. 1. The EO codifies, and in some cases modifies, the reciprocal tariff rates announced on “Liberation Day.”

• Imposed Under IEEPA. The president invoked the International Emergency Economic Powers Act (IEEPA, 50 U.S. Code § 1701) to impose tariffs to address the national security threat posed by the U.S. trade deficit.

• Country-Specific Tariff Rates. Starting on Aug. 7, the country-specific reciprocal tariff regime will replace the 10% “baseline” tariff for certain countries. The tariffs range from 15% to 41% and amend the rates assigned in Annex I on “Liberation Day.” Any nation not outlined below as part of Annex I will remain subject to the 10% baseline.

• The EO recognizes that negotiations are ongoing with several trading partners. However, such nations will remain subject to the new duties outlined below until such time that a formal agreement is reached.

• Transshipment. Any article determined to be transshipped to evade tariffs will be subject to a 40% tariff, in lieu of the applicable duty of the country of origin. Additionally, U.S. Customs and Border Protection (CBP) will impose appropriate fines and penalties as well as other duties, fees, taxes, exactions or charges applicable to goods of the country of origin.

• Additional Details:

• Goods Entered for Consumption by Oct. 5, 2025. Goods loaded onto a vessel at the port of loading and in transit on the final mode of transit before 12:01 a.m. EDT seven days after the date of this order, and entered for consumption, or withdrawn from warehouse for consumption, before 12:01 a.m. EDT on Oct. 5, 2025, will not be subject to the additional duty. Rather, the goods will be subject to the rates assigned on “Liberation Day.”

• European Union (EU). The dual EU rates in the chart below are structured to effectively increase existing U.S. tariffs on EU goods to 15%, while not applying any additional duties on EU goods that are already subject to tariffs above 15%. The administration will have to take further action to apply the 15% rate to “autos and auto parts, pharmaceuticals, and semiconductors,” three sectors that are subject to current or pending tariffs under Section 232 of the Trade Expansion Act of 1962.

• Services. Reciprocal tariffs currently do not apply to services contracts (e.g., professional services) or similar arrangements. The administration’s focus on goods over services reflects President Trump’s broader goal of revitalizing U.S. manufacturing.

• Canada and Mexico. The two countries are not subject to these “reciprocal” tariffs. For both nations, the trafficking-based tariffs continue to apply with exemptions for imports that meet USMCA rules of origin.

• Steel, aluminum, autos, copper and other sectors subject to current or future Section 232 “sectoral” tariffs. This EO does not modify the existing exemptions for goods subject to current and future “sectoral” tariffs implemented under Section 232 of the Trade Expansion Act of 1962. These tariffs currently apply to steel, aluminum, autos and copper with pharmaceuticals, lumber and semiconductors currently subject to Section 232 investigations, which are likely to result in the imposition of future tariffs.

**Any nation not listed above remains subject to the 10% baseline tariff rate.

AMENDMENT TO DUTIES TO ADDRESS THE FLOW OF ILLICIT DRUGS ACROSS OUR NORTHERN BORDER (Executive Order, Fact Sheet)

This EO updates the trafficking tariff imposed under IEEPA on imports from Canada from 25% to 35%; however, goods that satisfy rules of origin under the USMCA will remain exempt from this tariff.

Previously, on Feb. 1, President Trump issued a series of EOs to impose a 25% tariff on Mexico and Canada and a 10% tariff on Canadian energy resources. The administration formally cited Canada and Mexico’s failure to stop illicit immigration and shipments of deadly drugs such as fentanyl into the United States as the reason for imposing the tariffs. These tariffs went into effect on March 4, but the president signed an EO on March 6 temporarily exempting goods that satisfy USMCA rules of origin or that claim and qualify for USMCA preference.

On July 31, President Trump announced that all Mexican goods that do not satisfy USMCA rules of origin will remain subject to a 25% tariff for the next 90 days, as the countries negotiate a trade deal. Mexico will also remain subject to the Section 232 tariffs on steel, aluminum, autos and copper. However, the president issued an EO to increase the tariff on Canada, citing concerns that the nation failed to curb fentanyl shipments and implemented retaliatory tariffs.

• Imposed Under IEEPA. The president invoked IEEPA to increase the duty on Canadian goods from 25% to 35%. This EO does not appear to modify the 10% rate on Canadian energy resources. The increased duty will apply to goods entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. EDT on Aug. 1, 2025.

• USMCA Preference. Goods that satisfy USMCA rules of origin will remain exempt from trafficking tariffs.

• Transshipment. Any article determined to be transshipped to Canada to evade tariffs will be subject to a 40% tariff, in lieu of the 35% rate assigned to Canada. Additionally, U.S. Customs and Border Protection (CBP) will impose appropriate fines and penalties as well as other duties, fees, taxes, exactions or charges applicable to goods of the country of origin.

ADDRESSING THREATS TO THE UNITED STATES BY THE GOVERNMENT OF BRAZIL (Executive Order, Fact Sheet)

This EO imposes an additional 40% tariff under IEEPA on imports from Brazil in response to specific actions taken by the government of Brazil, effective on Aug. 7. This tariff is in addition to the 10% “reciprocal” tariff on imports from Brazil for a cumulative rate of 50%; however, the EO lays out significant exemptions that apply to the additional 40%.

Previously, on July 9, President Trump sent Brazil a letter, stating that he will dramatically increase the “reciprocal” tariff on Brazil from the 10% “baseline” to 50%. The president cited concerns about the trial of former President Jair Bolsonaro, who allegedly sought to overturn the results of the 2022 presidential election, as well as recent Brazilian efforts to target U.S. technology companies.

• Imposed Under IEEPA. The president invoked IEEPA to impose an additional ad valorem duty rate of 40% on Brazilian imports outlined in Annex II of the EO.

• It is estimated that Annex II accounts for roughly a third of Brazilian exports to the United States. Brazil’s Ministry of Development, Industry, Trade and Services is set to report an official figure shortly.

• 10% Baseline Remains In Effect. The 10% baseline tariff, which became effective on April 5, 2025, remains in effect on Brazilian goods, bringing the minimum duty rate to 50% for goods entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. EDT on Aug. 6, 2025. The tariff will apply in addition to all existing duties on Brazilian goods

• Exemptions. This EO exempts a list of articles outlined in its Annex I, including certain silicon metal, pig iron, civil aircraft and parts and components thereof, metallurgical grade alumina, tin ore, wood pulp, precious metals, energy and energy products and fertilizers.

• Additionally, this EO does not apply to imports subject to current and future sector-specific “reshoring” tariffs implemented under Section 232 of the Trade Expansion Act of 1962 (19 U.S. Code § 1862). This currently includes steel, aluminum, autos and copper. However, pharmaceuticals, lumber and semiconductors, among other goods, are currently subject to Section 232 investigations, which are likely to result in the imposition of future tariffs, potentially leaving such goods exempted from the 50% reciprocal duty.

• Retaliation. The EO warns that, if the Brazilian government imposes retaliatory tariffs, President Trump will increase the duty on Brazilian goods by the corresponding amount. Brazilian President Luiz Inácio Lula da Silva has been openly critical of the Trump administration’s trade policies, but it remains unclear how the Brazilian government will respond to the increased duty.

ADJUSTING IMPORTS OF COPPER INTO THE UNITED STATES (Proclamation, Fact Sheet)

This proclamation imposes a 50% tariff on imports of semi-finished copper products and intensive copper derivative products into the United States under Section 232 of the Trade Expansion Act of 1962. Notably, the tariff will not apply to refined copper until at least 2027, allowing U.S. producers of products that include copper to retain duty-free access to input material.

Previously, on Feb. 25, President Trump issued an EO directing the secretary of commerce to initiate a Section 232 investigation on whether the importation of copper and derivative products undermines national security. Section 232 of the Trade Expansion Act of 1962 (19 U.S. Code § 1862) empowers the Department of Commerce’s Bureau of Industry and Security (BIS) to determine if the importation of a product threatens the national security of the United States. The EO directed the secretary of commerce to review the state of copper production, smelting, refining and recycling domestically and abroad and report on whether foreign governments are engaging in anticompetitive practices that undermine U.S. production.

On June 30, Commerce Secretary Howard Lutnick submitted a report to the president outlining the national security risks associated with copper import dependency and recommending appropriate actions, including tariffs.

• 50% Tariff. Based on the Commerce Department’s findings, President Trump determined that a 50% tariff must be applied to all imports of semi-finished copper products and intensive copper derivative products, as set forth in the Annex. The duty will apply to the outlined products entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. EDT on Aug. 1, 2025. The tariff will apply in addition to any preexisting duties.

• The secretary of commerce is directed to establish a process by which additional derivative copper articles will become subject to the 50% duty within 90 days.

• Exemptions. The 50% duty will only apply to the copper content of a given product. Non-copper content will remain subject to reciprocal tariffs or other applicable duties based on the country of origin.

• The 50% copper tariff will not apply in addition to the 25% tariff on automobiles and related parts. If an automobile contains copper content, it will be subject to the 25% auto tariff, not the copper tariff.

• United Kingdom (UK). In accordance with the United States of America and the United Kingdom of Great Britain and Northern Ireland Economic Prosperity Deal, copper imports from the UK are exempt from the 50% duty as the nations work to establish a secure supply chain.

• Domestic Production. The EO authorizes the secretary of commerce under the Defense Production Act (DPA) to require 25% of high-quality copper scrap, including copper ores, concentrates, mattes, cathodes and anodes, produced in the United States to be sold domestically, beginning in 2027. The percentage will increase to 30% in 2028 and 40% in 2029. The policy is intended to enhance the domestic copper industry by ensuring adequate inputs are available for refining operations.

SUSPENDING DUTY-FREE DE MINIMIS TREATMENT FOR ALL COUNTRIES (Executive Order, Fact Sheet)

This EO suspends duty-free “de minimis” treatment for low-value shipments entering the United States regardless of their origin. The de minimis provision is often used by e-commerce companies as it currently allows goods valued at or under $800 to enter the United States duty-free. This EO builds on an earlier Trump administration EO that suspended “de minimis” for goods from China. OBBBA sunsets the “de minimis” exemption in July 2027, a date this EO effectively moves forward.

• Revocation. The de minimis exemption will no longer apply to any import entering the United States, regardless of value, country of origin, mode of transportation or method of entry. The imports will be subject to all applicable duties, taxes, fees, exactions and charges.

• Effective Date. All goods entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. EDT on Aug. 29, 2025, will no longer be eligible for de minimis entry.

• International Postal Network. Goods shipped through the international postal network that would otherwise qualify for the de minimis exemption will be subject to duties as outlined below:

• For the first six months after the policy goes into effect, such goods will be subject to a duty up to $200 per item, depending on the IEEPA rates applicable to the country of origin of the product.

• Countries with an effective IEEPA tariff rate of less than 16%: $80 per item;
  • Countries with an effective IEEPA tariff rate between 16%-25%: $160 per item; and
  • Countries with an effective IEEPA tariff rate above 25%: $200 per item.

• After six months, a duty equal to the effective IEEPA tariff rate applicable to the country of origin of the product shall be assessed on the value of each package containing goods entered for consumption.

• Travel and Gifts. American travelers can still bring back up to $200 in personal items, and individuals can continue to receive bona fide gifts valued at $100 or less duty-free.