On July 7, 2025, President Trump issued an Executive Order extending the suspension of reciprocal tariffs to August 1, 2025. The suspension was initially set to expire on July 9, 2025. The suspension does not affect the 10% reciprocal tariff rate on China, which is in effect until August 12, 2025.
The country-specific reciprocal tariffs implemented under the International Emergency Economic Powers Act (IEEPA) were first announced on April 2 under EO 14257. Soon after, Trump implemented a 90-day suspension on the reciprocal tariffs (excluding tariffs on China) and imposed a 10% baseline tariff rate on all imports from all trading partners listed in Annex 1 of EO 14257, except China.
A Fact Sheet published by the White House summarizing the new EO noted that some of the reciprocal tariffs that will take effect August 1 will be modified from the tariff rates originally announced in April. Trump has sent letters to over a dozen countries notifying them of revised tariff rates, and additional letters and revised rates may be announced in the coming weeks. For some countries, including Cambodia, Bosnia and Herzegovina, and Myanmar, the revised reciprocal tariff rate is lower than the rate initially announced in April. In other cases, such as Malaysia, Korea, and Japan, the revised reciprocal tariff rate is the same or slightly higher.
Cases challenging the legality of the reciprocal tariffs under IEEPA are currently pending before the Court of Appeals for the Federal Circuit and the Court of Appeals for the District of Columbia Circuit. These appeals follow decisions at lower courts (the Court of International Trade and the District Court for the District of Columbia) that ruled that Trump's use of IEEPA to impose reciprocal tariffs was illegal and outside the scope of presidential authority. These decisions are currently stayed, pending the results of the appeals. Oral arguments for the case before the Federal Circuit are scheduled to take place on July 31, 2025.
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