On August 5, 2025, U.S. Customs and Border Protection (CBP) issued guidance via Cargo Systems Messaging Service (CSMS) # 65829726 regarding the implementation of reciprocal tariff rates under Executive Order (EO) 14257, effective August 7, 2025, at 12:01 a.m. ET.
Affected Goods:
- Goods originating from countries listed in Annex I are subject to new tariff classifications under HTSUS 9903.02.02-9903.02.71
European Union (EU):
The reciprocal tariff for the EU is dependent on the Column 1/General duty rate for the applicable goods.
- If the duty rate is 15% or greater – no reciprocal tariff applies (HTSUS 9903.02.19)
- If the duty rate is less than 15% - additional duty applies to reach 15% (HTSUS 9903.02.20)
China (including Hong Kong and Macau) and any country not listed in Annex I will remain at 10% tariff rate for now.
Exemptions
- In-transit goods (limited window)
- Products from Canada, Mexico, and certain Column 2 countries.
- Humanitarian donations and informational materials
- Previous exemptions outlined in EO 14257 of April 2, 2025
- Articles of iron, steel, or aluminum, their derivatives and semi-finished copper and intensive copper derivative products, of any country that are subject to the full Section 232 tariffs. (Non-steel/aluminum content will be subject to the reciprocal tariff rates).
- Goods with U.S. content of 20% or greater (only non-U.S. portion taxed)
- Chapter 98, with exception
HTSUS Reporting Sequence
The notice provides specific filing instructions and examples. For entries with multiple HTSUS numbers, the following HTSUS sequence must be followed.
- Chapter 98 (if applicable)
- Chapter 99 (additional duties)
- Trade remedies (301, IEEPA Fentanyl, IEEPA Reciprocal, Section 232/201)
- Replacement duties (e.g., MTB)
- Other quotas
- Chapter 1–97 (commodity tariff)
Resources: