The Donald Trump administration introduced new customs duties targeting numerous countries through a presidential proclamation titled “Further Modifying the Reciprocal Tariff Rates,” which was signed on July 31, 2025. These new regulations are a continuation of the “Liberation Day” tariffs announced on April 2, 2025, and have comprehensively redefined the differentiated tax rates applied to countries with which the U.S. has a trade deficit.

_{US President Donald Trump, July 30, 2025 - (Anadolu Agency)}

Under the new tariff regime, special tax rates have been set for 69 countries, with these rates ranging from 10% to 41%. A universal 10% tariff has been established for countries with which the U.S. has a trade surplus, while a minimum base rate of 15% will be applied to countries with a trade deficit. The highest rate, 41%, has been set for Syria, followed by Myanmar and Laos at 40%. New tariffs of 39% have been imposed on Switzerland, and 35% on Canada and Serbia.

The majority of the new tariff rates are scheduled to take effect as of August 7, 2025. However, the special 35% tariff on Canada was implemented earlier, on August 1, 2025. A seven-day transition period has been granted to Customs and Border Protection (CBP) to complete the necessary technical adjustments. Furthermore, it has been announced that the previous rates will apply to goods in transit to the U.S. until October 5, 2025.

These tariffs are not limited to country-based rates. Sector-specific tariffs for strategic industries such as steel, aluminum, automotive parts, copper, pharmaceuticals, and semiconductors have also been simultaneously put into effect. An additional penalty tax of 40% will be applied to imports made through transshipment methods.

Industrial and Sectoral Tariff Policies

In addition to country-specific tariff rates, the Trump administration has also implemented high-rate tariffs targeting specific sectors. These regulations are designed to reduce foreign dependency and encourage domestic production, particularly in strategically important sectors. Sectoral tariffs are applied based on product category, independent of the country of origin.

Steel and Aluminum

• A 50% customs duty on steel and aluminum imports became effective as of June 4, 2025.
• This tariff rate applies to all steel and aluminum products manufactured outside the U.S.
• This rate has been doubled from the previous 25% tariff.
• An exceptional rate of 25% is in place for countries with specific agreements (e.g., the United Kingdom).

Copper

• With a proclamation that took effect on August 1, 2025, a 50% customs duty has been imposed on copper products.
• The U.S. administration cited the importance of copper for critical infrastructure and the defense industry, as well as heavy imports from countries like China, as the justification for this decision.

Automobiles and Automotive Parts

• Regulations implemented in April and May 2025 introduced a 25% tariff on the import of automobiles and spare parts.
• This rate affects both production lines and spare part supply chains.
• Some countries are subject to lower rates due to agreements in this sector (e.g., Japan and South Korea: 15%).

Pharmaceutical and Semiconductor Products

• Under a Section 232 investigation initiated in the second quarter of 2025 for pharmaceuticals and semiconductors, new tariff rates that could go up to 200% are under consideration.
• While a final tariff rate is not yet in effect for these products, temporary rates of 25%–50% have started to be applied to some import items.
• Negotiations for sector-specific exemptions are ongoing with Taiwan and South Korea, which are major centers for semiconductor production.

Transshipment Products

• The U.S. government is applying a 40% punitive tax on products sent to the U.S. via third countries with altered country-of-origin labels, a practice known as "transshipment."
• This measure specifically targets textile, electronic, and plastic products shipped to the U.S. through countries like China, Vietnam, Malaysia, and Cambodia.
• U.S. Customs and Border Protection (CBP) applies both the punitive tax and administrative sanctions under 19 U.S.C. 1592 when transshipment is detected.

Legal Basis and Administrative Procedures

The Donald Trump administration's 2025 global tariff policies were first initiated by Presidential Proclamation 14257, dated April 2, 2025. This proclamation declared a "trade-related national emergency," citing that large and persistent deficits in U.S. merchandise trade pose an unusual and extraordinary threat to national security and the economy.

The second proclamation, "Further Modifying the Reciprocal Tariff Rates," signed on July 31, 2025, amended and expanded the previous regulations. This new executive order is based on the powers granted to the President by the U.S. Constitution, in addition to the following federal laws:

• International Emergency Economic Powers Act (IEEPA)
• National Emergencies Act
• Section 604 of the Trade Act of 1974
• Title 3, Section 301 of the U.S. Code

This legal framework authorizes the President to implement extraordinary regulations in international trade relations. Accordingly, changes were made to the Harmonized Tariff Schedule of the United States (HTSUS), and both country-based tariffs and sector-based tax lines were restructured.

The technical regulations for implementing the proclamation are as follows:

• As of August 7, 2025, the country-based tariff rates specified in Annex I will take effect for 69 countries.
• For goods loaded before July 31, 2025, and arriving in the U.S. by October 5, 2025, the old rates will apply.
• According to Annex II, the customs classifications for tariffed goods have been redefined, and the 9903 series subheadings under which previous tariffs were applied have been canceled.
• The Department of Commerce, U.S. Customs and Border Protection (CBP), and the Office of the U.S. Trade Representative (USTR) are jointly responsible for implementing the tariff changes.

Additionally, special punitive provisions have been introduced for transshipment practices. If the CBP detects products indirectly brought into the U.S. via intermediate ports, those goods will be subject to a 40% additional ad valorem tariff, and financial sanctions may also be applied under 19 U.S.C. 1592. This measure aims to prevent non-U.S. origin goods from being relabeled and entering the U.S. through low-tariff countries.

Section 5 of the proclamation tasks the Department of Commerce and the USTR with monitoring the effects of the tariffs and, if necessary, making additional recommendations. These agencies will report new policy proposals to the President, taking into account the possibility of retaliation from foreign countries, compliance with the principle of reciprocity, and national security concerns.

International Reactions and Negotiation Processes

The U.S. global tariff regime of 2025 has led to various reactions from the international community and directly affected countries.

Canada

Canada has described the 35% tariff implemented by the Trump administration on August 1, 2025, as "contrary to our alliance and a form of economic sanctions." In a statement, Prime Minister Mark Carney said this decision would harm not only trade but also the security cooperation between the two countries. On August 5, Canada proposed a schedule for bilateral talks with the U.S., but Washington has not yet responded positively.

South Africa and Switzerland

The South African government has opposed the 30% tariff that took effect on July 31, 2025, and requested a temporary exemption, at least for the pharmaceutical sector. Similarly, Switzerland has objected to the 39% general tariff, asking for exceptions for its biotech drugs and medical devices. The U.S. administration has stated that these requests are under review.

Japan

In a quarterly report published on July 28, 2025, the Bank of Japan (BOJ) assessed the impact of the new tariff regime on the country's economy, despite an existing agreement with the U.S. The report stated that profitability in the automotive sector had fallen by 6% and export volume had decreased by 12%. The Japanese government has announced stimulus packages for the domestic market and plans separate talks with the U.S. for additional sectors (especially electronic components and agriculture).

China

China, which remains in a state of temporary truce until August 12, 2025, has objected through various channels to the Trump administration's threat of a 30% tariff. The Chinese Ministry of Commerce stated that the tariffs violate World Trade Organization (WTO) rules and argued that the U.S.'s unilateral economic policies are "disrupting global supply chains." China continues to maintain import quotas on U.S. agricultural products and has not yet made any proposals for structural reforms during negotiations.

European Union and the United Kingdom

The EU Commission announced the creation of a "Joint Trade Impact Assessment Mechanism" to monitor the sectoral and product-based effects of the tariffs following a framework agreement signed on July 27, 2025. Likewise, the United Kingdom announced that a joint committee, set to convene twice a year after a June 2025 agreement, will review tariff applications for the automotive and energy sectors.

Southeast Asian Countries

Countries like Vietnam and Indonesia are attempting to form a united front in regional forums against the 40% additional punitive tariffs they face due to transshipment practices. ASEAN (Association of Southeast Asian Nations) has presented a plan to hold a new framework agreement negotiation with the U.S. by the end of 2025. Thailand and Cambodia, despite facing tariffs of 19%, have also submitted requests for exemptions in certain sectors (textiles, electronics).