Compliance Summary: Tariff & Duty Updates
REMINDER - China is still in negotiations with the White House to potentially extend the current 90-day IEEPA-Reciprocal pause. There has been no official update. The pause is set to expire on August 12, 2025. The current Reciprocal rate is set at 10% until August 11, 2025. On August 12, 2025 it is meant to rise to 34%. This could change depending on negotiations.
Canada Duties Increased Under IEEPA-Fentanyl Tariffs (Effective August 1, 2025)
Imports from Canada are now subject to 35% duty, increased from 25% under IEEPA-Fentanyl provisions.
Applies to most Canadian goods unless specifically exempted.
Transshipped goods (to avoid duties) may be charged 40%.
IEEPA-Reciprocal Tariff Expansion (Effective August 7, 2025)
Executive Order (released 7/31/25)
New reciprocal tariffs now apply to goods from countries listed in Annex I (see executive order linked above), unless exempted.
China is not included in this update (remains under 10%).
EU Tariff Handling:
If General duty is less than 15%, no reciprocal tariff applies.
If General duty is 15% or greater, total Reciprocal duty will be 15%. (The pharmaceutical industry and many others will effectively now be taxed at a 15% rate now.)
Key Exemptions:
In-transit shipments (before Aug 7, entered by Oct 5)
Goods from Canada or Mexico (under USMCA rules)
Donations (food, medicine), books/media, and humanitarian aid
For U.S. - origin content – split the entries accordingly by U.S. origin content vs non - U.S. origin content.
Section 232 products
Certain Chapter 98 entries are exempt (except AGOA, CBTPA, some FTAs, and specific 9802 subheadings)
Important Note on Transshipment: Goods routed through other countries to avoid these duties may be charged 40% by Customs.
25% Tariff on Certain Indian Imports (Effective August 27, 2025)
Executive Order (released 8/6/25)
A 25% tariff will apply to most goods of Indian origin entered on or after August 27, 2025.
This is in addition to any existing duties.
Exemptions include:
Goods already excluded in Annex II of Executive Order 14257
Items subject to Section 232 (e.g., steel, aluminum, copper)
In-transit exception: Shipments loaded before Aug 27 and entered by Sept 17 are not subject to the new tariff.
FTZ goods entered after Aug 27 must be in Privileged Foreign Status and will be subject to the 25% when withdrawn.
Executive Order/Fact Sheet Ending De Minimis Exemption for Commercial Shipments Aug. 29
The White House issued an Executive Order/Fact Sheet on July 30, 2025, that eliminates the de minimis exemption for commercial shipments effective August 29, 2025.
This means that low-value imports (valued at $800 or less) shipped through commercial channels (not through the international postal service) will no longer qualify for duty-free entry. These shipments will now be subject to all applicable duties. (De Minimis/Section 321/Entry Type 86)
For the full details see the Fact Sheet released.
For assistance and additional questions, please reach out to Janel Group's Compliance Team or a Janel Group Representative.
Director of Trade Compliance
Senior Compliance Analyst