A major update in U.S. trade policy takes effect at 12:01 a.m. ET on July 24, introducing new tariff rates across dozens of trading partners. For importers and supply chain leaders, navigating these shifting duty structures and grace period deadlines is critical to avoiding unexpected customs fees or delivery delays.
Below is a breakdown of the key duty changes, effective dates, and exceptions.
Key Effective Dates & “In Transit” Rules
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Implementation Date: The new tariffs officially go into effect at 12:01 a.m. ET on July 24.
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In-Transit Grace Period: Shipments that were loaded prior to 12:01 a.m. ET on July 24 will be exempt from the new rates, provided they arrive in the U.S. before 12:01 a.m. ET on July 28.
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Action Required: Goods arriving on or after July 28 will be subject to the new duty rates regardless of when they were loaded.
Tariff Breakdown by Region & Country
The incoming measures impact 59 countries plus the European Union, applying tailored rates based on origin and current Most-Favored-Nation (MFN) status:
1. Flat 10% Tariff Group
A flat 10% tariff will apply to most goods imported from:
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Americas: Argentina, Canada, Ecuador, El Salvador, Guatemala, Honduras, Mexico, Trinidad and Tobago
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Asia & Pacific: Bangladesh, Cambodia, India, Indonesia, Malaysia, Pakistan, Sri Lanka
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Middle East: Jordan, United Kingdom
2. European Union & Taiwan (Targeting a Flat 10% Duty)
For imports originating from the EU and Taiwan, the U.S. will combine existing MFN rates with additional Section 301 duties to achieve an overall 10% duty rate:
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If the item’s existing MFN rate is under 10%, a Section 301 duty will be added to bring the total rate up to 10%.
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If the item’s existing MFN rate is already 10% or higher, no additional duty will be assessed.
3. Japan, South Korea, and Switzerland (Targeting a Flat 12.5% Duty)
Goods coming from Japan, South Korea, and Switzerland will follow a similar combined structure aimed at a 12.5% effective rate:
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A combination of MFN and Section 301 duties will be levied to reach 12.5%.
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If the item’s standard MFN rate exceeds 12.5%, no additional duty will apply.
Exemptions and Carveouts
Not all products or countries are affected equally by this regulatory shift:
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Universal Exemptions: A master list of product exemptions applies across all 59 countries and the EU.
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Country-Specific Carveouts: Additional specific product exemptions have been designated for:
Argentina, Bangladesh, Cambodia, Ecuador, El Salvador, the EU, Guatemala, Indonesia, Jordan, Malaysia, Switzerland, Taiwan, and the United Kingdom.
How Sobel Network Shipping Can Help
Navigating overlapping Section 301 duties, MFN classifications, and tight transit windows can complicate your customs entry process.
Our team of customs brokerage experts is available to review your HTS codes, verify transit times, and ensure your shipments clear customs smoothly without costly tariff surprises. Contact your Sobel representative today for guidance on your specific trade lanes.
