On July 31, just one day ahead of the deadline for the application of higher reciprocal tariffs on dozens of countries, President Trump signed an Executive Order (EO 14326), further modifying the reciprocal rates on around 70 countries. The new rates are set to go into effect starting on August 7. For countries not listed in the EO, they will have a 10% ad valorem rate applied unless otherwise noted.

According to the EO, “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.” While other countries, have failed to sufficiently address the imbalances of their trade relationship with the U.S. These matters were all taken into account in the development of the new, modified reciprocal tariffs.

In addition to the Modified Reciprocal EO, the Administration also recently published the following trade related orders:

• Executive Order 14323: Addressing Threats to the United States by the Government of Brazil
• Executive Order 14325: Amendment to Duties to Address the Flow of Illicit Drugs Across Our Northern Border
• Executive Order 14324: Suspending Duty-Free De Minimis Treatment for All Countries

Download the full Issue Memo HERE.