Brazil

The President on July 30 declared a new IEEPA emergency with respect to Brazil today resulting in a new tariff of 40% to be effective with respect to goods entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. ET Aug. 6.

In his executive order (EO) the President lays out the new tariff.  Please read below for a summary:

While this 40% tariff will have a significant impact on a number of imports from Brazil, there are several exceptions to the applicability of this tariff. Below is a summary of those exceptions and other significant details from the order:

Exceptions to the Tariff

• Goods in transit that were loaded on to a vessel at the port of loading and in transit on the final mode of transit prior to 12:01 a.m. ET Aug. 6, AND were entered for consumption, or withdrawn from warehouse for consumption before 12:01 a.m. ET on Oct. 5, 2025, the tariffs will NOT apply.

• Goods provided for in 50 U.S.C. 1702(b) , i.e. any postal, telegraphic, telephonic, or other personal communication; donations of food, clothing and medicine intended to relieve human suffering; merely informational materials; any transactions ordinarily incident to travel to or from any country, including importation of accompanied baggage for personal use.

• Goods in Annex I, which includes a wide variety of goods such as silicon metal, pig iron, civil aircraft, Brazil nuts, orange juice, some energy products, wood pulps, certain paper, etc. (see link above for details and Annex).

• Goods subject to section 232 actions, which would currently include steel, aluminum, autos & parts, and now copper (effective Aug. 1).

Stacking of tariffs

• The IEEPA reciprocal tariff will also apply to any goods subject to the new 40% rate for a total of 50% tariff above the MFN rate of due.

FTZ Goods

• Products admitted to an FTZ after 12:01 a.m. ET on Aug. 6, must be admitted as privileged foreign status.
• Goods eligible for admission to an FTZ under domestic status are exempt from the tariffs

Future Modifications (Increase or Decrease) 

• INCREASE

• o  If a country retaliates against U.S. goods as a result of these tariffs, the President may increase or expand the scope of the tariffs.
• DECREASE

• o  If a country remedies the non-reciprocal trade arrangements, the President my decrease or limit the scope of the tariffs.

Duty Drawback

• At this time, there is no express prohibition to claiming duty drawback on these tariffs.

Severability

• If any provision of the E.O. is held to be invalid, the remainder of the order will remain in place and not be affected.

Note, we will continue to monitor the Federal Register notice and any Customs and Border Protection (CBP) guidance issued on this action and will advise as more information is made available.

De Minimis

The White House released a Fact Sheet and Executive Order (EO) on July 30 claiming that a national emergency exists with respect to threats to national security, foreign policy and the economy of the United States and as a result the President is eliminating de minimis, effective Aug. 29 for all countries.

This EO modifies the EOs from February and April regarding the elimination of the de minimis first for China and Hong Kong and then from other countries once the Secretary of Commerce notified the President that adequate systems are in place to fully and expeditiously process and collect duties for goods previously entered under the de minimis $800 provision. The President amends the EOs on Mexico, Canada, China, and Hong Kong individually to remove de minimis and to suspend it for all other countries as well.

Low value shipments will still be allowed, but all shipments will have to pay duties (thus enter either under an informal (Type 11) entry or a formal (Type 01) entry). What is notable in this EO is that CBP may require that you have a bond for informal entries valued at or less than $2,500.

For goods shipped via the international postal system, they will have to pay either (1) the applicable IEEPA reciprocal duty rate, or (2) a per package fee based on a country’s applicable IEEPA reciprocal tariff. If the IEEPA reciprocal tariff is less than 16% the per package rate will be $80. If it is between 16-25%, the per package rate will be $160 and if it is greater than 25%, the rate will be $200.

However, option 2, paying the flat per package rate is only available for the first six months. After such time, ALL shipments will have to pay the applicable IEEPA reciprocal duty rate.

Also interestingly, this EO states that if any of the tariffs issued under the previous IEEPA EO’s that are being challenged in court are deemed to be invalid, the suspension of, or continued suspension of duty free de minimis treatment shall not be affected. So, it appears that the President is trying to retroactively “unscramble the egg” and sever the de minimis from the tariff issues noting that in the Detroit Axle case, the court felt that the IEEPA tariffs and de minimis prohibition were intertwined and could not be separated.

Regarding the “IEEPA reciprocal tariff,” the language in the EO references an earlier EO on stacking of tariffs. We refer you to our tariff stacking matrix to assist in having a basic understanding of the process. (Note: the chart is a reference tool and does not address every possible scenario, nor USMCA qualifying goods.)

Further, we will monitor the Federal Register and the CSMS from Customs to glean any additional information and share it as soon as we have reviewed and digested it.

Section 232 Copper

The President on July 30 issued a Fact Sheet and Presidential Proclamation imposing tariffs of 50% on imports of semi-finished copper and intensive copper derivative products pursuant to Section 232 of the Trade Expansion Act of 1962 due to a threat to national security.

Effective Date:

These tariffs will be effective with respect to goods entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. ET Aug. 1.

Copper Tariff Rate:

• 50% additional ad valorem duties (which are in addition to any other duties, fees, etc., applicable to such imported goods).

Scope Expansion:

• The Commerce Department will establish a process to add products to the scope of the tariffs within 90 days (Oct. 28). The process will be similar to the process currently in place to add products to the scope of coverage for aluminum and steel products.

Application of the 50% Tariff and Stacking:

• The 50% tariff will be assessed on the value of the copper content in a product.
• The non-copper content of the product will be subject to IEEPA reciprocal tariffs or other duties such as the IEEPA border/fentanyl tariffs on Mexican and Canadian products, or the IEEPA Fentanyl tariff on China, or the Section 301 tariffs on China.

Exclusions:

• The 50% tariff shall not apply to products subject to the autos/parts Section 232 tariffs.
• According to the Fact Sheet, Copper input materials (ores, concentrates, mattes, cathodes, and anodes) and copper scrap are not subject to 232 or reciprocal tariffs. (A summary of the Copper Chapter 99 HTSUS classification list is available here.) 

FTZ Goods:

• Products admitted to an FTZ after 12:01 am ET on Aug. 1, must be admitted in Privileged Foreign Status.
• Goods eligible for admission to an FTZ under domestic status are exempt from the tariffs.

Modifications and Expansion:

• The Commerce Department will monitor imports to determine if modifications are required.
• By June 30, 2026, the Commerce Department report on domestic copper markets, including refining capacity and the market for refined copper in the U.S., is to be provided to the President, which could support the President imposing on refined copper a 15% tariff effective Jan. 1, 2027, and 30% tariff on Jan. 1, 2028, if warranted. (note: the Fact Sheet references potential increased tariffs on such goods up to 40% in 2029, but the Pres. Proc. does not reference such dates or additional tariff amounts). 

Duty Drawback:

• Duty Drawback is prohibited.

CBP Guidance for Section 232 Import Duties on Copper and Copper Derivative Products

Customs and Border Protection (CBP) on July 31 provided guidance on applying the 50% Section 232 ad valorem duty on all imports of semi-finished copper products and intensive copper derivative products imposed by the Proclamation issued on July 30, 2025.

Background

On July 30, President Trump issued a Proclamation on Adjusting Imports of Copper into the United States, under Section 232 of the 1962 Trade Expansion Act, as amended (19 U.S.C. 1862), imposing an ad valorem tariff of 50 percent on all imports of semi-finished copper products and intensive copper derivative products, from all countries.

Entry Filing Instructions

This guidance provides instructions for importers, customs brokers, and filers on submitting entries to Customs and Border Protection (CBP) of semi-finished copper products and intensive copper derivative products, from all countries, as provided for in headings 9903.78.01 and 9903.78.02 of the Harmonized Tariff Schedule of the United States (HTSUS), entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. ET on Aug. 1, 2025

Heading 9903.78.01:

50% additional ad valorem rate of duty on the copper content of semi-finished copper and intensive copper derivative product

Heading 9903.78.02:

0% additional ad valorem rate of duty on

• the non-copper content of semi-finished copper and intensive copper derivative products; and
• imported goods under the subject HTSUS classifications which contain no copper 

Reporting Instructions for Applying Duties Based on Copper Content (HTSUS 9903.78.01

The 50% duty is to be reported based upon the value of the copper content.

The value of the copper content should be determined in accordance with the principles of the Customs Valuation Agreement, as implemented in 19 U.S.C. 1401a.

The value of the copper content is the total price paid or payable for that content, which is:

• the total payment made/to be made for the copper content by the buyer to, or for the benefit of, the seller of the copper content.
• Normally, this would be based on the invoice paid by the buyer of the copper content to, or for the benefit of the seller of the copper content.

For imported articles composed only of copper, the dutiable value of the copper content is the total entered value, and the duty must be reported under the HTSUS 9903.78.01 classification based on the total entered value, on only one entry summary line.

If the value of the copper content cannot be determined, then report the duty based on the total entered value, on only one entry summary line.

For articles not composed only of copper, the value of the copper content and the value of the non-copper content should be reported on two entry summary lines. The first line should represent the non-copper content, and the second line should represent the copper content. Each line should be reported in accordance with the instructions below.

Non-copper content, first line:

• Ch. 1-97 HTSUS, this same HTSUS must be reported on both lines.
• The same country of origin must be reported on both lines.
• Total entered value of the article less the value of copper content.
• Report the total quantity of the imported goods.
• Report the 0 percent Section 232 duties based on the value of the non-copper content with HTSUS 9903.78.02.
• Report all other applicable duties, such as IEEPA tariffs and antidumping and countervailing duties.

Copper content, second line

• Same Ch. 1-97 HTSUS reported on the first line.
• Same country of origin reported on the first line
• Report 0 quantity for the Ch. 1-97 HTSUS.
• Report the value of the copper content.
• Report the Section 232 duties based on the value of copper content with HTSUS 9903.78.01.
• Report a second quantity (of the copper content) in kilograms with the HTSUS 9903.78.01.
• Report all other applicable duties, such as IEEPA tariffs and antidumping and countervailing duties.

For all Section 232 duties based on copper content which are based on a value other than the entire value of the good, importers must keep documentation to support the reported values and provide to CBP upon request. Examples of such documentation include, but are not limited to, the bill of materials for the production of the goods, invoices for the materials used in the production of the goods, and accounting documentation to substantiate the reported values.

When insufficient documentation is provided to substantiate the reported values, CBP said it will collect the duties on the copper content based on the entire value of the good.

“Importers who submit underreported declarations may be subject to severe consequences, such as significant monetary penalties, loss of import privileges, and criminal liability, consistent with United States law,” CBP said.

Duties Applying to the Non-Copper Content

Per the July 30, 2025 Proclamation, the non-copper content of all subject copper articles shall be subject to any other import duties in effect, including import duties established by Presidential Proclamations, except as specified below.

Exemption for Goods Subject to Section 232 Duties on Auto Parts

If an imported good is subject to both the Section 232 duties on automobiles and automobile parts under Proclamation 10908, as amended, and the Section 232 duties on copper and copper derivative products, then the Section 232 duties on copper and copper derivative products are not applicable.

IEEPA Reciprocal Tariff Exception

International Emergency Economic Powers Act (IEEPA) Reciprocal tariff exception 9903.01.33 applies to goods subject to Section 232 tariffs including semi-finished copper and intensive copper derivative products provided for in 9903.78.01.

Drawback

No drawback shall be available with respect to the duties imposed pursuant to the July 30, 2025 Proclamation.

Foreign Trade Zone

Any product, except those eligible for admission under “domestic status” as defined in 19 CFR 146.43, that is subject to the duty imposed by the July 30, 2025 Proclamation and that is admitted into a U.S. foreign trade zone on or after the effective date of Aug. 1, 2025, must be admitted as “privileged foreign status” as defined in 19 CFR 146.41, and will be subject upon entry for consumption to any ad valorem rates of duty related to the classification under the applicable HTSUS subheading.

Questions from the importing community concerning ACE entry rejections involving copper goods and their derivative filings should be referred to their CBP Client Representative.

For reference, a summary of Copper Chapter 99 HTSUS classification list is available here. (Note: click the attachment at the bottom of the related CSMS.)

For questions regarding our trade Remedy programs, visit the CBP Trade Remedy webpage at https://www.cbp.gov/trade/programs-administration/trade-remedies, or contact the Trade Remedy Branch at TradeRemedy@cbp.dhs.gov. If you encounter any errors in filing an entry summary, contact your CBP Client Representative or the ACE Help Desk.

White House Provides Additional U.S.-EU Trade Deal Details

Following the Trump administration’s announcement on Sunday, July 27, regarding a trade deal reached with the European Union (EU), the White House published this fact sheet which includes additional details.

The EU will pay the U.S. a tariff rate of 15%, including on autos and auto parts, pharmaceuticals, and semiconductors, while the EU has zeroed out most tariffs on U.S. goods. The sectoral tariffs on steel, aluminum, and copper will remain unchanged, meaning the EU for now will continue to pay 50%.

Other trade highlights in the fact sheet include:

• Tariff Barriers:  The European Union will work with the United States to eliminate tariffs in various sectors and will provide meaningful quotas for other products, which when combined will create commercially meaningful market access opportunities for a significant amount of U.S. goods exports to the European Union, supporting high-quality American jobs. 
• Non-Tariff Barriers for U.S. Industrial Exports: The European Union will work to address a range of U.S. concerns related to various EU requirements that are burdensome to U.S. exporters, particularly small and medium-sized businesses, including through efforts to eliminate the red tape that U.S. exporters face when doing business in the European Union.
• Non-Tariff Barriers for U.S. Agriculture Exports: The United States and the European Union intend to work together to address non-tariff barriers affecting trade in food and agricultural products, including streamlining requirements for sanitary certificates for U.S. pork and dairy products.
• No Free Riders: The United States and the European Union will establish strong rules of origin to ensure that the benefits of this agreement flow directly to the United States and the European Union, not to third countries.

European Commission Factsheet Regarding July 27 EU-U.S. Trade Deal

The European Commission on July 29 released a document, “EU-US trade deal explained,” which NCBFAA believes would be of value to our members. Some of the key highlights from this document include the following commitments from both the EU and U.S.

• Establishing a single, all-inclusive U.S. tariff ceiling of 15% for EU goods. As of 1 August, the U.S. will apply this maximum tariff on the vast majority of EU exports. It is an all-inclusive tariff rate and represents a ceiling, including the U.S. most favoured nation (MFN) tariff that was previously stacked on top of additional tariffs the US introduced.
  • The 15% ceiling applies to nearly all EU exports currently subject to reciprocal tariffs (except where the U.S. MFN tariff exceeds 15%, in which case only the MFN tariff applies with no additional tariffs on top).
  • The 15% ceiling applies also to cars and car parts, currently subject to a tariff rate of up to 25% tariff with an additional MFN tariff of 2.5%, providing immediate tariff relief.
  • The 15% ceiling will also apply to any potential future tariffs on pharmaceuticals and semiconductors, including those based on Section 232. Until the U.S. decides on whether to impose additional tariffs on these products pursuant to Section 232, they will remain subject only to U.S. MFN tariffs.
• Providing special treatment for strategic products. As of 1 August 2025, U.S. tariffs on EU aircraft and aircraft parts, certain chemicals, certain drug generics or natural resources will go back to pre-January levels. This will provide immediate tariff relief for key EU industries, while the EU and U.S. agreed to keep working to add more products to this list.
• Joining forces to protect the steel, aluminium and copper sectors from unfair and distortive competition. Global overcapacity threatens EU and U.S. industry alike. Together, the EU and the U.S. will establish tariff rate quotas for EU exports at historic levels, cutting the current 50% tariffs, while jointly ensuring fair global competition.

You can read the entire “EU-US trade deal explained” document here.

“The political agreement of 27 July 2025 is not legally binding. Beyond taking the immediate actions committed, the EU and the U.S. will further negotiate, in line with their relevant internal procedures, to fully implement the political agreement,” the European Commission document concluded.

President Trump Extends Trade Talks with Mexico 90 Days

President Trump on July 31, after a phone call with Mexico President Claudia Sheinbaum, announced that trade talks between the U.S. and Mexico will be extended for 90 days, past the original Aug. 1 deadline for a 30% tariff to take effect.

“[W]e are getting to know and understand each other. The complexities of a Deal with Mexico are somewhat different than other Nations because of both the problems, and assets, of the Border. We have agreed to extend, for a 90 Day period, the exact same Deal as we had for the last short period of time, namely, that Mexico will continue to pay a 25% Fentanyl Tariff, 25% Tariff on Cars, and 50% Tariff on Steel, Aluminum, and Copper. Additionally, Mexico has agreed to immediately terminate its Non Tariff Trade Barriers, of which there were many. We will be talking to Mexico over the next 90 Days with the goal of signing a Trade Deal somewhere within the 90 Day period of time, or longer,” President Trump wrote in his Truth Social post.

Canada Products Receive 35% Tariff, Effective Aug. 31

President Trump on July 31 signed an Executive Order, according to this Fact Sheet, that increased the tariff on Canada products from 25% to 35%, with the higher tariff set to go into effect at 12:01 a.m. ET on Aug. 1.

“Canada has failed to cooperate in curbing the ongoing flood of fentanyl and other illicit drugs, and it has retaliated against the United States for the President’s actions to address this unusual and extraordinary threat to the United States,” the Executive Order said. “In response to Canada’s continued inaction and retaliation, President Trump has found it necessary to increase the tariff on Canada from 25% to 35% to effectively address the existing emergency.”

Goods qualifying for preferential tariff treatment under the U.S.-Mexico-Canada Agreement (USMCA), however, continue to remain not subject to the IEEPA Canada tariffs. Goods transshipped to evade the 35% tariff will be subject, instead, to a transshipment tariff of 40%.

CBP Update on Additional Duties on Imports from Canada

Customs and Border Protection (CBP) late yesterday evening, July 31, sent the trade updated guidance on the additional duties due on U.S. imports on Canadian products, pursuant to Executive Order 14193, “Imposing Duties to Address the Flow of Illicit Drugs Across Our Northern Border,” issued on February 1, 2025, as amended July 31.

Guidance

For goods that are products of Canada, that are entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. ET on Aug. 1, the following HTSUS classifications and additional duty rates apply:

9903.01.10: All imports of articles that are products of Canada, other than products classifiable under headings 9903.01.11, 9903.01.12, 9903.01.13, 9903.01.14 or 9903.01.15 and other than products for personal use included in accompanied baggage of persons arriving in the U.S., will be assessed an additional ad valorem rate of duty of 35%.

All articles that were subject to the additional ad valorem rate of duty of 25% under Executive Order 14193, as amended, shall instead be subject to an additional ad valorem rate of duty of 35%, effective 12:01 a.m. ET on Aug. 1.

For goods that are determined by CBP to have been transshipped to evade the additional ad valorem for products of Canada, the agency said it will direct the importer that such goods are subject to the following HTSUS classification and additional duty rate:

9903.01.16: Except for products described in 9903.01.11, 9903.01.12, and 9903.01.14, articles the product of Canada that are determined by CBP to have been transshipped to evade applicable duties, will be assessed an additional ad valorem rate of duty of 40%, in lieu of the rates that would otherwise be applicable under 9903.01.10, 9903.01.13 and 9903.01.15.

CBP said it will provide additional guidance to the trade community through CSMS messages as appropriate. If you encounter any errors in filing an entry summary, contact your CBP Client Representative or the ACE Help Desk. Questions regarding this message should be directed to CBP Trade Remedy at traderemedy@cbp.dhs.gov.

Trump Executive Order Imposes Reciprocal Tariffs on Countries Without Trade Deals

President Trump issued an Executive Order on July 31 which sets in motion the imposition of reciprocal tariffs on most countries which have not reached trade deals with the U.S.

“Some trading partners have agreed to, or are on the verge of agreeing to, meaningful trade and security commitments with the United States, thus signaling their sincere intentions to permanently remedy the trade barriers that have contributed to the national emergency declared in Executive Order 14257, and to align with the United States on economic and national security matters. Other trading partners, despite having engaged in negotiations, have offered terms that, in my judgment, do not sufficiently address imbalances in our trading relationship or have failed to align sufficiently with the United States on economic and national-security matters. There are also some trading partners that have failed to engage in negotiations with the United States or to take adequate steps to align sufficiently with the United States on economic and national security matters,” the Executive Order said.

The Executive Order said that the tariffs become effective for goods entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. ET seven days after the date of this order (July 31), except that goods loaded onto a vessel at the port of loading and in transit on the final mode of transit before 12:01 a.m. ET seven days after the date of this order (July 31), and entered for consumption, or withdrawn from warehouse for consumption, before 12:01 a.m. ET on Oct. 5, 2025.

Customs brokers which handle import entries from the EU should pay particular attention to this aspect of the Executive Order regarding reciprocal tariffs:

“As provided in Annex I to this order, the additional ad valorem rate of duty applicable to any good of the European Union is determined by the good’s current ad valorem (or ad valorem equivalent) rate of duty under column 1 (General) of the HTSUS (“Column 1 Duty Rate”).  For a good of the European Union with a Column 1 Duty Rate that is less than 15 percent, the sum of its Column 1 Duty Rate and the additional ad valorem rate of duty pursuant to this order shall be 15 percent.  For a good of the European Union with a Column 1 Duty Rate that is at least 15 percent, the additional ad valorem rate of duty pursuant to this order shall be zero.”

In order to calculate the duty for specific or compound rate for the EU. (See Annex II):

“As provided in headings 9903.02.19 and 9903.02.20, for any good of the European Union subject to a specific or compound rate of duty under column 1-General, the ad valorem equivalent rate of duty of such good shall be determined by dividing the amount of duty payable under column 1-General by the customs value of the good. For example, if a good were subject to a specific duty of 50 cents per kilogram, and one kilogram of the good were entered with a customs value of $10, then the ad valorem equivalent rate of duty would be obtained by dividing 50 cents by $10, yielding 5 percent.”