New Executive Order Finalizes Country-Specific Tariffs

By David Zaiken

Failure to plan is planning to fail. This popular quote may be old, but it’s never been more relevant today for businesses impacted by tariffs.

With the latest executive orders at the end of July 2025 on reciprocal tariffs now public, most of the guessing game is over. We know which countries are affected, by how much and when the new rates kick in. The time for watching and waiting is over. If you don’t develop a strategy now, you risk taking a financial hit later. The trend is clear: this may migrate over time, but we have a path forward.

What’s in the Order

Signed on July 31, 2025, this executive order modifies the U.S. Reciprocal Tariff Regime, targeting trade partners that even if they have entered into an initial  reciprocal trade and national security agreements with the United States.

Key details:

• New country-specific tariff rates are now in effect
• The existing 10% baseline tariff remains for unlisted countries
• Countries in Annex I face much higher tariffs, ranging from 15% to 41%
• These rates apply to imports beginning August 7, 2025, unless already in transit before that date (those goods are exempt until October 5)

But there are important exceptions and country-specific notes to consider in your planning:

• Canada: Has a separate agreement in place. Most Canadian imports now face a 35% tariff unless they fully qualify under the US-Mexico-Canada Agreement (USMC). This change takes effect on August 1, 2025.
• Mexico: The U.S. has granted a temporary extension for 90 days, and both governments have until late October to conclude their negotiations. With no agreement, there will be a 30% expansion of tariffs on non-compliant imports.
• China: These tariffs are still under review, with a final decision expected August 12. Without a further extension or an agreement, tariffs could change from 10% currently to ~80%+ rates.
• Brazil: Assigned some of the highest rates, tariffs here are both economic and political. Starting August 6, 2025, with a grace period through October 5, imports are hit with an extra 40% reciprocal tariff, layered on top of the existing 10% baseline tariff. There is a carveout for roughly 700 Brazilian products, though.

Who’s Affected?

There are 68 countries plus the European Union listed in Annex 1, including:

• Japan: 15%
• India: 25%
• Vietnam: 20%
• South Korea: 15%
• Taiwan: 20%

Even nations like Vietnam, South Korea and the EU, which have made partial progress in negotiations, still face adjusted rates around 15–20%, depending on the product.

Whether your suppliers are directly listed or simply operate in or through these regions, the financial impact can be significant.

A Real-World Example: Procter & Gamble

If you’re wondering what happens when companies don’t get ahead of tariff risks, just look at Procter & Gamble. The global consumer goods giant is already feeling the squeeze from tariff-related cost pressures.

In its most recent earnings report, the company took a margin hit and had to raise U.S. prices due to tariff-related cost pressures. Even with deep resources, complex supplier networks and expert advisors, P&G’s strategy couldn’t avoid financial consequences.

If it can happen to them, it can happen to you.

What This Means for You

These new tariffs have the potential to reshape cost of goods sold, supplier relationships, profit margins and customer pricing models. And that shift can come fast.

Here’s what you should do now:

1) Evaluate sourcing

• Identify country of origin for your imported goods
• Cross-reference supplier countries with those listed in Annex I
• Review Harmonized Tariff Schedule (HTS) codes for accuracy

2) Model your exposure

• Forecast your cost increases under both short-term and long-term scenarios
• Account for transitional periods like the in-transit grace window ending October 5

3) Rethink supply chains

• Explore alternate suppliers in countries not subject to increased tariffs.
• Look at reshoring or nearshoring options if feasible

4) Monitor shifting policies

• Watch for updates, especially on China and Mexico, where terms are still evolving
• Legal challenges to the order are in motion, but no resolution is expected soon

5) Communicate with stakeholders

• Get your leadership, procurement and sales teams aligned on next steps
• Prepare messaging for customers if pricing changes are necessary

Don’t Let This Catch You Off Guard

Event companies with a plan may still see financial strain. The lesson isn’t that planning guarantees success. It’s not planning that guarantees problems. Combining tariff and tax planning (given the One Big Beautiful Bill Act) can clearly yield valuable results.

Whether you’re importing packaging, parts or finished goods, your business needs a proactive strategy. The rules are here. The rates are clear. The timelines are tight. And there is no future in waiting.