New Duties, New Risks: What Importers and Exporters Need to Know in August 2025
- Schulz Trade Law
- Aug 12
- 5 min read
New Duties, New Risks:
What Importers and Exporters Need to Know in August 2025
By Schulz Trade Law PLLC
August 11, 2025
The global trade landscape is changing rapidly — and 2025 has proven to be one of the most volatile years in recent memory. In just the past few weeks, the United States has rolled out multiple sweeping trade actions, including the suspension of the de minimis duty exemption, new Section 232 copper tariffs, targeted tariffs on India-origin goods, and a significant new trade deal with the European Union.
For importers, exporters, manufacturers, and supply chain professionals, these changes bring both new risks and new opportunities. This article breaks down each major development, outlines its potential impact, and offers practical steps you can take to protect your business and remain compliant.
1. De Minimis Exemption Suspended
Key date:
Executive Order issued: July 30, 2025
Effective: August 29, 2025
For decades, the de minimis threshold has been a crucial tool for businesses engaged in cross-border e-commerce and small parcel trade. Under current law, shipments valued under $800 could enter the United States duty-free, provided they met all regulatory requirements.
That changes on August 29, 2025. Under the new Executive Order, all shipments — regardless of value — will now be subject to the applicable duty rate listed in the Harmonized Tariff Schedule of the United States (HTSUS). This suspension applies to imports from all countries.
Why It Matters
E-commerce Impact: Small and mid-sized online retailers that relied on duty-free shipments will now face increased landed costs.
Administrative Burden: Even low-value imports will require full customs declarations, increasing compliance costs and paperwork.
Pricing Pressure: Businesses may need to adjust retail pricing or absorb the increased costs, depending on their competitive landscape.
What Businesses Should Do
Review Your Supply Chain: Identify products previously imported under the de minimis rule and determine their applicable duty rates.
Update Cost Models: Adjust landed cost calculations to account for the new duties.
Enhance Compliance Processes: Ensure your customs brokers and internal teams are prepared for the additional filings.
2. Copper Import Tariffs Introduced
Key Date:
Proclamation issued: July 30, 2025
Effective: August 1, 2025
Following a Section 232 investigation into copper imports, the Trump Administration has imposed a 50% tariff on semi-finished copper products. This measure took effect August 1, 2025, with refined copper now under evaluation for a potential phased tariff schedule.
Section 232 investigations are conducted under the authority of the Trade Expansion Act of 1962, allowing tariffs to be imposed when imports are determined to threaten national security.
Why It Matters
Industrial Impact: Copper is a critical material in sectors ranging from electronics and construction to renewable energy and electric vehicles.
Cost Increases: A 50% tariff will significantly raise raw material costs for U.S. manufacturers relying on imported copper.
Supply Chain Disruption: Companies may need to secure alternative suppliers or consider reshoring production.
What Businesses Should Do
Audit Your Copper Usage: Identify where imported copper enters your production process.
Explore Domestic Sourcing: Consider negotiating with U.S.-based suppliers to reduce tariff exposure.
Monitor Further Announcements: If refined copper is added to the tariff list, cost impacts could extend across additional industries.
3. Tariffs on India-Origin Goods
Key date:
Announcement: August 6, 2025
Effective: August 27, 2025
In response to India’s continued purchases of Russian oil, the Trump Administration has used the International Emergency Economic Powers Act (IEEPA) to impose a 25% “Russian Oil” tariff on goods originating from India.
Crucially, this tariff does not replace India’s existing 25% reciprocal tariff rate. Instead, the two rates stack — meaning India-origin goods could face a total tariff burden of 50%.
Why It Matters
Targeted Industries: The measure could hit textiles, pharmaceuticals, automotive parts, and technology imports from India particularly hard.
Bilateral Strain: This move underscores escalating trade tensions between the U.S. and India.
Supply Chain Realignment: Businesses dependent on India for raw materials or manufacturing may need to diversify sourcing.
What Businesses Should Do
Evaluate India Exposure: Quantify the share of your imports that originate from India.
Consider Alternative Suppliers: Explore sourcing options in tariff-neutral countries.
Revisit Contracts: Negotiate with suppliers on pricing and delivery terms to offset the tariff impact.
4. U.S.–EU Trade Agreement Reached
Key date:
Agreement announced: July 28, 2025
Effective date: TBD
In one of the most significant trade developments of the year, the U.S. and European Union have announced a new bilateral trade agreement. While the effective date has yet to be set, the proposed framework includes:
15% tariff rate on EU imports into the U.S.
Elimination of tariffs on U.S. industrial exports to the EU.
$750 billion EU commitment to purchase U.S. energy.
$600 billion EU investment in the U.S. over a three-year period.
Why It Matters
Export Opportunities: The elimination of EU tariffs on U.S. industrial goods could benefit manufacturers in aerospace, automotive, and heavy machinery.
Energy Sector Boost: The $750 billion energy purchase commitment is expected to drive demand for U.S. oil, gas, and renewable energy exports.
Foreign Investment Surge: The EU’s $600 billion investment pledge could stimulate U.S. infrastructure and technology sectors.
What Businesses Should Do
Prepare for Market Entry: U.S. companies looking to expand into the EU should begin compliance preparations now.
Target Energy Supply Chains: Firms in the energy sector should position themselves to capture a share of the EU’s purchasing commitment.
Watch for Implementation Details: Timelines and regulatory requirements will be key to leveraging the deal.
The Bigger Picture:
A Shift in U.S. Trade Enforcement Priorities
Taken together, these actions signal a more aggressive, targeted approach to U.S. trade enforcement. The Administration is:
Tightening import thresholds (ending de minimis duty exemptions)
Imposing punitive tariffs for strategic materials (copper)
Leveraging tariffs for geopolitical influence (India and Russian oil)
Pursuing large-scale bilateral deals (U.S.–EU agreement)
This combination of protectionist and strategic trade moves creates heightened uncertainty for global supply chains. Companies that fail to adapt could face eroded margins, supply chain disruption, and compliance risks.
Practical Steps to Protect Your Business
Conduct a Comprehensive Tariff Exposure ReviewMap your imports and exports against the updated HTSUS duty rates, Section 232 measures, and targeted tariffs.
Scenario-Plan for Cost IncreasesDevelop multiple financial models that reflect different tariff rates and sourcing changes.
Diversify Supply ChainsIdentify secondary suppliers in tariff-neutral countries to minimize risk.
Enhance Compliance ProgramsEnsure your internal controls, customs declarations, and supplier certifications are up-to-date.
Monitor Regulatory Changes in Real TimeMany of these measures have short lead times before taking effect. Staying informed is critical.
Key Trade Compliance Keywords for 2025
De minimis threshold suspension
HTSUS tariff classification
Section 232 copper tariffs
International Emergency Economic Powers Act (IEEPA)
India-origin goods tariff
U.S.–EU trade deal 2025
Harmonized Tariff Schedule compliance
Supply chain risk mitigation
Import/export compliance strategies
Tariff exposure assessment
Be Proactive, Not Reactive
These recent trade actions illustrate the speed and scale at which trade policy can shift. Businesses that wait until tariffs take effect to respond often face higher costs, delayed shipments, and compliance penalties.
At Schulz Trade Law PLLC, we specialize in helping clients navigate complex trade regulations, reduce tariff exposure, and adapt compliance strategies to meet changing requirements. Whether you are a small importer, multinational exporter, or supply chain manager, our team provides the legal insight and practical solutions you need to stay competitive.
Contact us today to ensure your business is prepared for the evolving trade landscape.
About Schulz Trade Law
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