According to Bloomberg, President Donald Trump’s expanded reciprocal tariffs are not going to apply to any products that were loaded onto a vessel for transport into the U.S. prior to Aug. 7 based on guidance issued by U.S. Customs and Border Protection.
The notice—which the federal government posted on Aug. 4—sets out the tariff implementation that Trump announced on Jul. 31, which are expected to significantly increase levies on dozens of trading partners, Bloomberg reported.
Expected exemptions for products under the U.S.-Mexico-Canada, or USMCA, free trade agreement that Trump negotiated in his first term are included in the document. Also listed are exemptions for relief items such as food, clothing, and medicine that are going to be distributed as aid. Included as well is a 40 percent tariff on goods that the federal government deems as transshipped to avoid country-specific duties.
Viewed together, the average U.S. tariff rate will increase to 15.2 percent if the rates are implemented as announced, according to Bloomberg Economics. That’s rose from 13.3 percent earlier and considerably higher compared to the 2.3 percent in 2024 prior to Trump assuming office for his second term.
Trump’s country-based tariffs have been characterized as the nucleus of his plan to lower trade deficits while putting pressure on businesses to shift manufacturing jobs to and invest in the U.S. Previously, Trump postponed his reciprocal tariffs that were first announced in April. He did this to give more time for negotiations as other countries tried to get better terms.
Some nations, including Switzerland and India, are still trying to negotiate deals to lower their duties before the Aug. 7 deadline.
Trump is expected to reveal separate tariffs on imports of pharmaceuticals, semiconductors, critical minerals, and other important industrial products in the upcoming weeks. Bloomberg said that this means continuing uncertainty for firms and investors.
Additionally, on Aug. 4, Trump also threatened to impose “substantially” higher levies on Indian exports to the U.S. due to New Delhi buying Russian oil.
Meanwhile, even though Trump's tariffs are now earning the U.S. billions in revenue, the long-term economic effects are still uncertain. Those against the tariffs have stated that they will increase the costs for U.S. consumers and businesses while worsening inflation, Bloomberg reported.