The U.S. will resume country-specific tariffs next week under a new executive order signed by President Trump, setting rates as high as 41% and introducing steep penalties for evasion. While some trading partners have secured exemptions or special terms, others face sharply increased duties amid a shifting global trade environment.
Country-Specific Tariffs Resume
President Donald Trump on Thursday signed an executive order confirming the United States will begin enforcing a slate of country-specific tariffs starting August 7. The order outlines import duties for nearly 70 countries, with rates ranging from 10% to 41%. The decision ends a temporary pause on differentiated tariffs that began earlier this year, replacing the flat 10% levy with a more targeted framework tied to bilateral trade negotiations.
The new tariff regime reflects agreements and policy shifts Trump has been rolling out in recent months. A 25% duty on imports from India, previously threatened in public statements, has now been formally enacted. Countries that have negotiated favorable terms, such as the European Union, Japan, and South Korea, secured defined rates aligned with their respective deal frameworks. Meanwhile, goods from Canada, Mexico, and China remain subject to their own separate duties and are unaffected by this latest order.
The order includes a key logistical carveout: goods already in transit to U.S. ports by August 7 will be exempt from the new duties, provided they are entered for consumption by October 5. However, the administration introduced a strict penalty clause to deter circumvention. Products flagged by U.S. Customs and Border Protection as having been transshipped to evade duties could face a punitive 40% tariff along with further fines and enforcement actions.
Executive Order Reflects Strategic Reset in U.S. Trade Policy
The finalized tariff structure revives a version of the country-specific duty framework Trump first proposed in April, which was shelved in favor of a uniform 10% rate to give trade partners time to negotiate. That pause has now ended, and the new directive is being framed as a tool to reward cooperation and penalize delay. Trump stated that while some countries offered “meaningful trade and security commitments,” others “declined to engage” or “offered insufficient terms,” prompting the reimposition of targeted duties.
This move reflects a broader shift in U.S. trade posture under Trump’s current term. The administration has signaled a preference for bilateral over multilateral arrangements, using tariffs as leverage to extract more favorable trade terms. The inclusion of a specific clause penalizing transshipment attempts also signals an increased focus on enforcement mechanisms, a theme consistent with recent CBP crackdowns on duty circumvention through Southeast Asian routing and shell importers.
Additionally, the tariff recalibration coincides with rising global concern over the fracturing of trade alliances. According to recent data from the Peterson Institute for International Economics, retaliatory tariffs imposed in previous trade cycles have reshaped sourcing patterns across industries, from semiconductors to consumer electronics. The updated U.S. structure is likely to reinforce those shifts, particularly for countries now facing elevated rates without having secured new trade frameworks.
What Happens After August 7 May Matter Even More
While much of the attention is focused on the tariff rates themselves, the more important test may come in how rigorously they are enforced and how other nations respond. In previous rounds of tariff escalation, some companies rapidly shifted sourcing to “tariff-neutral” countries or relied on third-party consolidators to mask country of origin. The introduction of a 40% penalty for transshipment violations suggests U.S. agencies are preparing for these evasive strategies, and this time, they intend to act swiftly. That could create an undercurrent of supply chain volatility that extends well beyond the headline tariff list.