New US country-specific tariffs and the EU’s response
The US announces new country-specific tariffs as of 1 August 2025
The United States has announced new country-specific reciprocal tariffs, with implementation set for 1 August 2025. These tariffs are being communicated through official letters from the White House to affected trading partners. The initial list includes several key economies, among them the European Union, Canada, Brazil, Mexico, Japan, and South Korea.
To date, tariff notifications have been issued to the following countries and territories:
| Country/Territory | Tariff rate |
| Algeria | 30% |
| Bangladesh | 35% |
| Brazil | 50% |
| Brunei | 25% |
| Bosnia | 30% |
| Cambodia | 36% |
| Canadian | 35% |
| European Union | 30% |
| Indonesia | 32% |
| Iraq | 30% |
| Japan | 25% |
| Kazakhstan | 25% |
| Korea (South) | 25% |
| Laos | 40% |
| Libya | 30% |
| Malaysia | 25% |
| Mexico | 30% |
| Moldova | 25% |
| Myanmar | 40% |
| Philippines | 20% |
| Serbia | 35% |
| South Africa | 30% |
| Sri Lanka | 30% |
| Tunisia | 25% |
| Thailand | 36% |
Additional tariff notifications to other countries and territories may follow in the coming days and weeks.
Importantly, these country-specific reciprocal tariffs apply separate from sectoral tariffs (e.g., those targeting steel, aluminium, automotive goods, etc.). If a foreign country raises its own tariffs in retaliation, the US may apply the new reciprocal tariff on top of that increase. Transshipment schemes aimed at circumventing higher tariffs (e.g., by misdeclaring the country of origin) will be subject to the higher applicable rate.
EU response and temporary suspension of retaliatory tariffs
European Commission President Ursula von der Leyen has reaffirmed the EU’s readiness to engage in dialogue and reach a mutual resolution before the 1 August deadline. However, she also emphasized that the EU will take proportionate countermeasures to protect its economic interests if needed.
As part of its response, the EU has adopted Commission Implementing Regulation (EU) 2025/1446 on 14 July 2025, which temporarily suspends additional customs duties imposed by previous regulations – (EU) 2025/778, (EU) 2018/886, and (EU) 2020/502 – until 6 August 2025. The European Commission will continuously reassess this suspension in light of the ongoing developments in EU-US trade relations and reserves the right to shorten the suspension period or take further action.
The European Commission is further evaluating a supplementary list of imports from the United States that may become subject to EU countermeasures, should the ongoing EU-US negotiations fail to yield a mutually satisfactory resolution and the removal of existing US tariffs.
The list, previously submitted for public consultation, comprises a wide range of industrial and agricultural products originating in the United States. In parallel, the Commission is also examining the feasibility of introducing restrictions on certain EU exports to the United States, specifically in relation to steel scrap and selected chemical products.
These prospective countermeasures aim to address the US's global tariffs, as well as the specific duties imposed on automobiles and automotive parts.
Recommended actions and how we can support you
To mitigate the commercial and compliance risks associated with the new tariff measures, we advise companies to take the following proactive steps:
- Review country of origin: Given that certain US tariff measures (e.g., reciprocal tariffs and tariffs on Chinese goods) are country-specific, businesses should thoroughly examine the origin of their goods. Accurate origin documentation is critical, as authorities will closely scrutinize imports subject to these tariff measures. Being audit-ready will ensure compliance and avoid unnecessary operational complications such as import and export delays.
- Ensure correct customs classification: Properly classifying goods is essential in determining whether specific products are subject to certain tariffs or qualify for exemptions. With the complexity of targeted tariffs on steel, aluminum, automobiles, and related parts, companies must ensure their product classifications are correct and up-to-date.
- Rationalize customs valuation: Companies should, in compliance with customs valuation rules, assess the potential to adjust pricing strategies and cost components – particularly for intangible elements – to ensure a rational customs value and prevent the overpayment of tariffs. For intercompany transactions, it is critical to ensure that declared values reflect “arm’s length pricing” from a customs valuation perspective. In chain transactions involving successive sales of the same goods, businesses should carefully determine which transaction qualifies as the “sale for export” for customs valuation purposes.
- Engage with stakeholders: Open communication with suppliers, customers, and internal teams is essential to navigating the impact of these tariffs. Companies should collaborate with suppliers to explore alternative sourcing options and keep customers informed about potential price changes. Additionally, internal stakeholders should be regularly updated on trade and customs regulatory developments that could impact sourcing, pricing, and other operational or commercial aspects.
We are here to guide you through these changes, ensuring your business remains compliant, adaptable, and well-positioned in response to the evolving tariff landscape. Please reach out to our Trade and Customs team at KPMG Meijburg & Co for further assistance.
Note: This alert reflects the state of play as of the date of publication. It will not be updated automatically as further developments occur.
