Tariff Talk: What’s the latest?

There’s been a lot happening in the world of trade and tariffs over the last few weeks. To help you stay informed, we’ve summarised the latest updates below. Please remember that these policies can change quickly, and if you think you or your business might be affected, don’t hesitate to contact us for tailored advice.

And remember: the KPMG Tariff Modeller is updated with all the latest changes. Simply input your data to assess daily impacts and model new scenarios.

Key trade and tariff updates

Effective August 29, 2025, the U.S. will suspend duty-free de minimis treatment for all commercial shipments, except those sent through the international postal network.
For postal shipments, duties will be assessed using either:
- Ad valorem: Duty equal to the IEEPA tariff rate for the country of origin.
- Specific duty: $80 per item (if IEEPA rate is <16%), $160 (16–25%), or $200 (>25%), available for six months from the Executive Order’s effective date.
Exemptions for personal imports and gifts remain in place.

Read the Executive Order

A 40% ad valorem tariff applies to most imports from Brazil, effective August 6, 2025, following a national emergency declaration under IEEPA.
Exemptions apply to certain goods listed in Annexes I and II.
This duty is in addition to other applicable tariffs, except for products already subject to Section 232 tariffs (steel, aluminium, automobiles, auto parts, copper).

Read the Executive Order and Annexes

Effective August 1, 2025: 50% tariff on semi-finished copper products and copper-intensive derivatives (pipes, wires, connectors).
Tariffs apply only to the copper content; other materials are subject to their respective duties.
Copper 232 tariffs do not stack with auto 232 tariffs but may stack with steel/aluminium 232 tariffs if sharing an HTS code.
Strict copper content reporting is required; underreporting may result in severe penalties. No drawback is available for these duties.

Read the Proclamation

Read the Annex listing affected HTS codes

Effective August 1, 2025: Tariff on Canadian goods increased from 25% to 35%.
Goods qualifying for USMCA preferential treatment remain exempt from IEEPA tariffs.

Read the announcement

The US and Mexico have extended their current trade arrangement for 90 days.
During this period, Mexico remains subject to a 25% fentanyl tariff, 25% tariff on cars, and 50% tariff on steel, aluminium and copper.
The administration aims to complete a new trade deal with Mexico during this time.

Read the announcement

Effective August 7, 2025: New ad valorem duties imposed on goods from certain countries (see Annex I for rates and country list).
Countries not listed in Annex I: 10% additional ad valorem duty.
Goods originating from the European Union will not be subject to additional tariff rates if their existing ad valorem rate is 15% or more. If an EU originating good has an existing most favoured nation rate below 15%, its total rate will be MFN duty rate plus the additional ad valorem duty rate to equal 15%
Attempting to evade tariffs via transshipment can result in an extra 40% duty plus the correct reciprocal tariff.
This executive order does not change the current tariff stacking rules (i.e., a good subject to the Section 232 automobile tariffs will not be subject to the reciprocal tariffs) nor does the announcement affect the previous tariffs imposed on China.

Read the Executive Order

August 11, 2025: Temporary 10% reciprocal tariff on Chinese imports extended for 90 days.
Imports from China remain subject to the 10% reciprocal tariff, 20% fentanyl IEEPA tariff, and applicable Section 301 or 232 tariffs.
If no agreement is reached by November 10, 2025, an 84% reciprocal tariff will be imposed.

Read the Executive Order

What do these changes mean for businesses?

This latest wave of tariff increases and regulatory adjustments shows that trade policy remains a key tool for economic and foreign policy. For many companies, these changes can mean higher costs, more paperwork, and the need to revisit supply chain strategies. Importers should pay close attention to the new stacking rules, exemptions, and stricter reporting requirements - especially for products like copper.

How to prepare and respond

Proactive scenario planning is more important than ever. Tools like the KPMG Tariff Modeller can help you quickly assess the impact of new tariffs, explore alternative sourcing, and model financial implications. Open communication with suppliers and logistics partners is also key to staying compliant and minimising disruption.

We know these changes can feel overwhelming. If you think any of these updates might affect your business, suppliers or customers, please reach out. Our experienced team can help you understand the details, model the impacts and develop strategies to reduce your exposure. We’re here to help you stay compliant and competitive.