Tariff Talk Thursday is Back!
Visit our Events page for details or register here.
Tariff Talk Thursday is Back!
Visit our Events page for details or register here.
JULY 2025
July was marked by ongoing tariff negotiations, with progress made with partners like Japan, Philippines and the EU, while key deals with India and Canada remain unresolved. The extension of the tariff pause to August 1 offered temporary relief but prolonged uncertainty. Despite trade tensions, U.S. inflation held steady at 2.4%, and markets rebounded to February 2025 levels. Container lines announced capacity reductions on trans-Pacific routes to address falling freight rates and weakening import demand. August 1 is expected to bring significant tariff increases. Meanwhile, the baseline for tariff negotiations has seemingly increased from 10% to 15%, and enforcement remains a top priority under President Trump. Rising consumer prices and increased funding for export regulation signal continued volatility until new trade agreements are fully implemented.
April showers bring May flowers—and July anxiety brings August tariff increases. Importers (and Customs brokers) spent much of July in a steady workflow, gaining comfort with the changes to date while waiting to see what August would bring. The first of the month is set to introduce many changes in reciprocal tariff rates. As these rates and agreements vary, the industry is preparing.
Importers of small, low-value shipments will also see a tariff increase, as the de minimis process is formally being suspended for all countries effective August 29. This change follows previous limitations placed on de minimis, now that the Secretary of Commerce is confident systems are in place to manage the shift. Shipments valued under $800 will now require filing as either informal or formal entries and will be subject to all applicable tariffs. Shipments sent through the postal system will be assessed based on the destination country’s reciprocal rate. The order also specifies that any suspension of IEEPA tariffs will not affect the loss of de minimis treatment.
While tariff increases are making headlines, import user fees will also rise effective October 1. The long-standing Merchandise Processing Fee (MPF) for formal entries will remain at 0.3464%, but the minimum fee will increase from $32.71 to $33.58, and the maximum from $634.62 to $651.50. Fees for informal entries ($2.69), vessel and aircraft passenger arrivals ($7.39), and truck arrivals ($7.35) will also see modest increases, among other adjustments.
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