On July 31, 2025, the White House issued an executive order to modify reciprocal tariff rates as part of an ongoing effort to address significant trade deficits. The order cites the need to rectify imbalances in trade relationships and to impose additional duties on goods from certain countries that are considered non-reciprocal in their trade practices. This action follows previous declarations of a national emergency concerning trade practices that negatively impact the U.S. economy and national security.

The modifications to the Harmonized Tariff Schedule of the United States (HTSUS) will apply to goods entered for consumption after a specified date and will include varying rates for trading partners based on their cooperation in negotiating trade agreements with the U.S. Notably, the European Union has specific tariff rates based on existing duty rates, with a minimum rate established to ensure a baseline of reciprocity. Additionally, the order outlines strict measures against the transshipment of goods intended to evade duties, including severe penalties for violations.

The implementation of these tariff modifications will be overseen by various departments, including the Secretary of Commerce and the United States Trade Representative, who are responsible for monitoring compliance and recommending further actions if necessary. This executive order emphasizes the administration’s commitment to fair trade practices while reinforcing national economic security. The order is part of a broader strategy to engage with international partners on trade and economic matters, aiming for a balanced approach to trade relations.

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