Recent Executive Orders Affecting Imports

On July 30 and 31, 2025, the White House issued a series of executive actions introducing new tariffs and trade restrictions affecting a broad range of imported products and materials. The actions include new tariffs on finished or semi-finished copper products, the suspension of duty-free treatment for low-value shipments, country-specific tariff increases under the reciprocal tariff framework, and a new penalty structure for transshipped products and other materials. This alert provides a high-level summary of these announcements, which are subject to further clarification through administrative actions by U.S. Customs and Border Protection (CBP).

Key Provisions of Recent Executive Orders

Effective August 1, 2025: Tariffs on Canadian products increased from 25% to 35%. This rate will also apply to the value of repairs, alterations, or processing performed in Canada on products originating elsewhere, as defined under Chapter 98 of the Harmonized Tariff Schedule (HTS). Products transshipped through third countries to evade these duties will be subject to a 40% transshipment penalty, with no eligibility for mitigation or remission. However, products that qualify as originating under the United States–Mexico–Canada Agreement (USMCA) will continue to enter duty-free.^[i]

As a result of a Section 232 investigation, a 50% tariff now applies to semi-finished copper and intensive copper derivative products. This applies to the copper content only; non-copper content is subject to other applicable duties. The Department of Commerce will continue to review the market for copper and may expand the list of impacted products and materials in the future.^[ii]

Effective August 7, 2025: Country-specific reciprocal tariff rates take effect, ranging from 10% to 41%, depending on the country. Illustrative examples include a 25% rate for India, 15% for Japan and South Korea, and a variable rate for the European Union—either 0% or a “top-up” to 15%, depending on the product’s existing duty rate under the HTS. Syria is subject to a 41% rate, while Brazil faces a 10% reciprocal tariff (which is in addition to the additional tariffs described below, starting on August 9).

No changes have been made for products of China or of Mexico at this time. 

Shipments already in transit before the effective date of the new reciprocal tariff regime may still qualify for the uniform 10% reciprocal tariff previously imposed under Executive Order 14257, implemented on April 2, 2025. To be eligible, products must be loaded onto a vessel at the port of export and must have commenced their final leg of transport to the United States before 12:01 a.m. EDT on August 7, 2025. These shipments must then be entered for consumption, or withdrawn from warehouse for consumption, in the United States no later than 12:01 a.m. EDT on October 5, 2025.  ^[iii]

Effective August 9, 2025:  A 40% tariff applies to most products of Brazil, in addition to any other applicable duties that apply to a product or the 10% reciprocal duty effective August 7. Certain products are excluded by Annex I to the implementing executive order, including civil aircraft, raw materials, and other products. ^[iv]

Effective August 29, 2025: Duty-free treatment for low-value shipments, or those valued less than $800, will be suspended for all countries. All shipments must now be entered formally with U.S. Customs and will be subject to applicable duties. Postal shipments will temporarily retain simplified processing until a new entry system is implemented.^[v]

Enhanced Penalty Framework for Transshipping Products

U.S. law generally prohibits importers from making false statements or omissions in connection with the importation of merchandise, including misstatements of origin. Under 19 U.S.C. § 1592, CBP may impose civil penalties for fraud, gross negligence, or negligence—up to the full domestic value of the product. Building on this framework, these executive orders authorize CBP to impose a 40% penalty tariff rate on products or materials determined to have been transshipped through third countries to evade applicable reciprocal tariffs. This penalty replaces the product’s standard reciprocal tariff rate but is cumulative with all other applicable charges, including basic product duties, Section 232 and 301 tariffs, and any anti-dumping or countervailing duties. Notably, “transshipment” is not defined, leaving CBP broad discretion to determine when products have been transshipped. The orders also expressly prohibit mitigation or remission of civil penalties in these cases. Importers should ensure that the declared country of origin reflects the true origin under U.S. substantial transformation rules and proactively assess their supply chains for transshipment risk.

Federal Appeals Court Weighs Constitutionality of Presidential Tariff Authorities

Also on July 31, 2025, the U.S. Court of Appeals for the Federal Circuit heard en banc arguments challenging the constitutionality of those tariffs imposed under the International Emergency Economic Powers Act (IEEPA). Several judges expressed skepticism that IEEPA grants the President authority to unilaterally impose tariffs, noting that the statute does not mention tariffs and warning against an “unbounded” delegation of legislative power.  A decision could follow two lower court rulings that found the IEEPA tariffs exceeded executive authority,[vi] and it is reasonable to expect these issues to go to the Supreme Court, which means that there may be continued uncertainty, even under the most aggressive schedules.

While this pending litigation could ultimately affect the validity of the reciprocal tariffs imposed under IEEPA, including those applied globally and the so-called “fentanyl tariffs” targeting Canada, Mexico, and China, it would not impact other tariff regimes. These include Section 301 duties on Chinese products, Section 232 duties on automobiles, automotive parts, steel, aluminum, and copper, and any anti-dumping and countervailing duties. The new transshipment penalties described above are also authorized under IEEPA and could likewise be affected by the outcome of this litigation.

These actions represent a significant expansion of the United States’ tariff and trade enforcement framework, with broad implications for importers across industries. The new measures—particularly the country-specific reciprocal tariffs, the transshipment penalty framework, and the suspension of de minimis treatment—will require importers to reassess sourcing strategies, compliance protocols, and supply chain documentation. Businesses should expect continued regulatory developments, including further tariff adjustments, new entry procedures for postal shipments, and increased enforcement activity targeting transshipment and origin misdeclaration.

Honigman’s Regulatory and Executive Order Task Force is actively monitoring these developments and advising clients on compliance strategies, duty mitigation opportunities, and risk management. Please contact Angela Gamalski, Daniel Wendt, or another member of the Government Relations and Regulatory practice group for assistance in navigating these changes.

[i] https://www.whitehouse.gov/presidential-actions/2025/07/amendment-to-duties-to-address-the-flow-of-illicit-drugs-across-our-northern-border-9350/

[ii] https://www.whitehouse.gov/presidential-actions/2025/07/adjusting-imports-of-copper-into-the-united-states/

[iii] https://www.whitehouse.gov/presidential-actions/2025/07/further-modifying-the-reciprocal-tariff-rates/

[iv] https://www.whitehouse.gov/presidential-actions/2025/07/addressing-threats-to-the-us/

[v] https://www.whitehouse.gov/presidential-actions/2025/07/suspending-duty-free-de-minimis-treatment-for-all-countries/

[vi] https://www.honigman.com/alert-2972