U.S. Delays Implementation of Higher Reciprocal Tariff Rates to August 1

Trade Update • July 7, 2025

Key Points:

• New Effective Date: Higher reciprocal tariffs postponed from July 9 to August 1, 2025.

• China Exception: The separate 145% tariff rate suspension on China remains unchanged.

• Affected HTS Headings: The suspension applies to HTSUS headings 9903.01.43 through 9903.01.62, 9903.01.64 through 9903.01.76, and related notes.

• Justification: Delay based on updated input from senior officials and ongoing discussions with trading partners.

• Authorities Cited: The President invoked powers under IEEPA, the Trade Act of 1974, and prior executive orders.

• Next Step: Full implementation expected August 1 unless further changes arise.

n a move that provides additional time for ongoing trade discussions, President Donald Trump issued a new executive order on July 7, postponing the effective date of higher country-specific reciprocal tariff rates from July 9 to August 1, 2025. The delay follows further analysis and recommendations from senior government officials and reflects the evolving status of bilateral talks with U.S. trading partners.

Suspension Period Extended

The newly issued order extends that suspension until 12:01 a.m. EDT on August 1, 2025, stating that it is “necessary and appropriate” in light of ongoing discussions with trade partners. The change applies to the specific Harmonized Tariff Schedule of the United States (HTSUS) provisions affected by the reciprocal tariff regime:

• HTSUS headings 9903.01.43 through 9903.01.62

• HTSUS headings 9903.01.64 through 9903.01.76

• Subdivisions (v)(xiii)(1)-(9) and (11)-(57) of U.S. Note 2 to Subchapter III of Chapter 99

Background, Authority and Implementation of Reciprocal Tariff Measures

The higher reciprocal tariffs stem from Executive Order 14257, issued in April 2025, which declared the United States’ large and persistent goods trade deficit a national emergency. Under that order, Trump imposed country-specific ad valorem duties as a corrective response to non-reciprocal trade practices, particularly targeting those that undermine U.S. economic and national security.

The policy was later amended through Executive Order 14266 in April 2025, which temporarily suspended the full tariff increases for 90 days—replacing them with a flat 10% duty—while partners demonstrated “sincere intentions” to align with U.S. trade and security priorities. That 90-day reprieve was set to expire on July 9.

The President directed relevant departments and agencies—including Commerce, Homeland Security, and the USTR—to implement the order in accordance with applicable laws. Agencies may use all authorities granted under the International Emergency Economic Powers Act (IEEPA) and related statutes to adopt rules, regulations, or guidance necessary for enforcement.

This authority also allows for temporary regulatory amendments and Federal Register notices as needed to carry out the suspension or later impose higher rates.

Looking Ahead

Unless another order is issued in the interim, the full reciprocal tariff rates—presumably higher than the 10% placeholder—will now take effect at 12:01 a.m. EDT on August 1, 2025. For importers and customs brokers, this means continued duty planning uncertainty, though it also offers a short window to adjust logistics and explore alternative sourcing.

The administration emphasized that the extension is designed to allow trade partners “more time to take significant steps” to address non-reciprocal trade practices. The decision also signals that, while enforcement is delayed, the broader policy direction of aggressive trade enforcement under Executive Order 14257 remains firmly in place.

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