On July 7, 2025, the White House announced a two-part update to the United States’ reciprocal tariff policy: an extension of the current 10% tariff suspension and the introduction of new, country-specific tariff rates effective August 1, 2025.
The Executive Order extends the temporary suspension—originally implemented under Executive Order 14266—for most US trading partners through 12:01 a.m. EDT on August 1, 2025. This means that goods from countries listed in Annex I of the original order will continue to be subject to the flat 10% reciprocal tariff rate—a temporary, uniform measure applied under the reciprocal tariff framework. This does not affect other existing trade remedy tariffs (e.g., Section 232, 301), which remain in effect unless separately suspended.
China, Hong Kong, and Macau remain excluded from this extension and are still governed by a separate Executive Order, which maintains a distinct suspension framework.
New Country-Specific Tariffs Coming August 1
Alongside the extension, the White House also issued a fact sheet announcing new reciprocal tariff rates ranging from 25% to 40% for a group of countries that, according to the administration, continue to maintain trade barriers or imbalanced practices. These rates are scheduled to take effect on August 1, 2025, and were communicated directly to the governments concerned.
Countries & Tariff Rates
- 25%: Japan, South Korea, Malaysia, Kazakhstan, Tunisia
- 30%: South Africa, Bosnia and Herzegovina
- 32%: Indonesia
- 35%: Bangladesh, Serbia
- 36%: Cambodia, Thailand
- 40%: Laos, Myanmar
While the administration reports progress with some countries—including reduced tariffs and eliminated trade barriers—the fact sheet emphasizes that enforcement will continue until all partners agree to reciprocal terms. The US has made clear that goods produced in the US or under an approved bilateral framework may qualify for exemption from these higher rates.
Current Trade Deal Landscape
- The United Kingdom remains the only country with a finalized reciprocal tariff agreement formally recognized in the Federal Register.
- A deal with Vietnam has been publicly discussed by the administration but has not yet been officially confirmed or published.
- China, Hong Kong, and Macau are operating under a separate tariff suspension and are not included in this latest action.
What This Means for Importers
With the 10% baseline now extended through the end of July and higher rates looming for certain countries, importers should carefully review their sourcing strategies and tariff exposure. The announcement signals a shift toward country-specific enforcement and less reliance on broad, uniform measures.
Need Help Navigating These Changes?
Mohawk Global Trade Advisors is closely monitoring the evolving tariff landscape and can provide guidance on country-specific implications, risk mitigation, and compliance planning.Contact us today for strategic support tailored to your supply chain.