The U.S. Tariff Landscape Has Changed, Again. Here’s What You Need to Know

The US tariff landscape has changed significantly in the last two months, with the expiration of several temporary pauses and the implementation of new, country-specific tax rates on imports. The overarching policy is one of “reciprocal tariffs,” where the US aims to match the tariffs other countries place on its goods.

Executive Orders (EOs) and Their Impact

• Executive Order 14257 (April 2, 2025): “Regulating Imports With a Reciprocal Tariff…”
  • This EO was a major step, imposing a baseline 10% tariff on most imports. It also included higher, country-specific rates that were initially paused for 90 days to allow for trade negotiations.
  • Current State (August 7, 2025): The negotiation period has ended. The broad, country-specific tariffs under this order have now officially gone into effect. The administration has set a wide range of new tariff rates based on the outcomes of negotiations (or lack thereof). Shipments already in transit before this date may still be subject to the old 10% rate if they arrive by October 5, 2025.
• Executive Order 14289 (April 29, 2025): “Addressing Certain Tariffs on Imported Articles”
  • This EO aimed to prevent products from being hit with multiple high tariffs. It ensured that if a product was subject to several different tariffs, only the single highest rate would be applied, not all of them combined.
  • Current State (August 7, 2025): This order remains in effect, guiding how tariffs are calculated across various product categories.

Current Tariffs and Their Impact

• “Reciprocal Tariffs” (Broad, Newly Implemented):
  • The temporary pauses have ended. As of August 7, 2025, goods from dozens of countries are subject to new, specific tariff rates. Some key examples:
    • European Union: A 15% tariff.
    • Canada: A 35% tariff on most goods.
    • United Kingdom: A 10% tariff.
    • India: A new 25% tariff took effect today, with another 25% set to start on August 27.
    • Japan and South Korea: Goods from these countries are subject to a 15% duty.
• Tariffs on Computer Chips and Semiconductors:
  • A significant new tariff of 100% is planned for imported computer chips and semiconductors. The goal is to encourage companies to build these products within the United States.
  • Impact: This could lead to a steep increase in the price of electronics, cars, and other items that rely on these components, unless companies shift their production to the US.
• Tariffs on Steel and Aluminum (50%):
  • Tariffs on most imported steel and aluminum were increased from 25% to 50% in early June.
  • Current State: This higher 50% rate is still in place for most countries. The United Kingdom remains a notable exception, with a 25% tariff on its steel and aluminum.

• Tariffs on China: On August 11, just hours before the previous pause was set to expire, an Executive Order was signed to extend the temporary tariff truce with China for another 90 days. The temporary 30% tariff on most Chinese imports will remain in place until mid-November.

• New “Transshipment” Penalty (40%): A new rule now imposes a 40% penalty on goods that are found to have been sent through a third country specifically to avoid paying a higher tariff. This is a powerful tool to enforce the new tariff system.

Legal Challenges to the Tariffs

The legality of these new tariffs is still being fought in court. A lower court previously ruled that the Executive Orders exceeded the president’s authority, but an appeals court has temporarily blocked that ruling. This means the tariffs remain in effect for now while the legal battle continues. The issue could ultimately be decided by the Supreme Court, creating ongoing uncertainty about the future of the new tariff system.