ExecutiveOrdersEO
EO 14326Executive OrderTrump 47 · R

Executive Order 14326

Further Modifying the Reciprocal Tariff Rates

TradeTradeEconomy & LaborEconomy & LaborDefense & SecurityDefense & Security

In simple terms

Executive Order 14326 modifies reciprocal tariff rates imposed under EO 14257, replacing country-specific additional ad valorem duties with new rates in Annex I effective August 7, 2025. The order creates a 15% combined duty floor for EU goods, maintains a 10% default rate for unlisted partners, imposes a 40% transshipment penalty, and requires biannual publication of circumvention facility lists.

Federal Register Open PDF 90 FR 37963

Record & deadlines

  1. Signed

    Signed by the President

  2. FR published

    Published in the Federal Register · 90 FR 37963

    Federal Register PDF

  3. Subsequent biannual circumvention list publications

  4. First biannual publication of circumvention countries and facilities list

  5. Deadline for in-transit goods (loaded before August 7, 2025) to be entered for consumption under prior EO 14257 rates

  6. Tariff modifications effective; new Annex I rates apply to goods entered for consumption or withdrawn from warehouse

Market exposure

Policy exposure mapping — not investment advice. Illustrative public companies are incomplete and not recommendations.

Sectors

Steel & aluminumAutosAgriculturePharmaTechnology & softwareSemiconductors

Mechanisms

TariffBan / prohibitionProcurement

Role pressure

  • AdverseImporter — Higher or restructured ad valorem duties on covered goods; 40% transshipment penalty creates compliance risk; EU floor at 15% raises costs for EU-sourced goods
  • ProtectiveDomestic producer — Tariff walls against imports from non-compliant partners and EU goods below 15% baseline; emergency declared to protect domestic manufacturing base and defense industrial base
  • MixedDownstream manufacturer — Protected from import competition but faces higher input costs for EU goods subject to new floor and other partner goods with elevated Annex I rates
  • MixedTrading-partner exporter — Adverse for non-compliant partners and those with insufficient offers; protective/uncertain for partners 'on verge of concluding' agreements whose rates may be memorialized in subsequent orders
  • AdverseProject developer — Supply chain uncertainty from biannual circumvention lists affecting procurement and due diligence; potential exclusion from public procurement if facilities listed

Geographies

USEUCNJPKRTWMXCAUKINVNMY

Exposure dates

  • — Tariff modifications effective; new Annex I rates apply to goods entered for consumption or withdrawn from warehouse
  • — Deadline for in-transit goods (loaded before August 7, 2025) to be entered for consumption under prior EO 14257 rates

Illustrative public companies

Curated watchlist matches by sector/role — incomplete; not a recommendation.

AAAlcoaGOOGLAlphabetAAPLAppleADMArcher Daniels MidlandAVGOBroadcomBGBungeCATCaterpillarCENXCentury AluminumCLFCleveland-CliffsCTVACortevaLLYEli LillyFFordGMGeneral MotorsHYMTFHyundai MotorINTCIntelQQQInvesco QQQ TrustJNJJohnson & JohnsonMRKMerckMETAMeta PlatformsMUMicron TechnologyMSFTMicrosoftNVSNovartisNUENucorNVDANVIDIA

Confidence: high · Policy alerts

Key directives

  • Modify HTSUS per Annex II effective 12:01 a.m. EDT August 7, 2025
  • Impose new country-specific ad valorem duties per Annex I in lieu of EO 14257 rates
  • Apply 15% combined duty floor for EU goods (Column 1 Duty Rate less than 15% gets supplemental rate to reach 15%; at/above 15% gets zero additional)
  • Maintain 10% default additional duty for unlisted trading partners
  • Impose 40% ad valorem penalty on transshipped goods evading duties
  • Publish biannual list of circumvention countries and facilities (every 6 months)
  • Terminate existing HTSUS headings 9903.01.43-9903.01.62 and 9903.01.64-9903.01.76 and subdivisions upon Annex II effective date
  • Commerce/USTR determine additional HTSUS modifications via Federal Register notice
  • Commerce/USTR monitor emergency and recommend further action

Who is ordered

Prior policy

  • otherEO 14257 additional ad valorem duties for certain trading partners
  • otherHTSUS headings 9903.01.43-9903.01.62 and 9903.01.64-9903.01.76 and subdivisions (v)(xiii)(1)-(9) and (11)-(57) of U.S. note 2 to subchapter III of chapter 99
  • otherexisting HTSUS headings upon Annex II effective date

Related orders

What to expect

Immediate

  • EO takes effect upon signing July 31, 2025
  • tariff modifications effective August 7, 2025 at 12:01 a.m. EDT (7 days after signing)
  • in-transit goods loaded before August 7, 2025 exempt from new rates if entered before October 5, 2025
  • HTSUS heading suspensions continue until Annex II effective date

Near term (90d)

  • first biannual circumvention facility list due within 6 months (by January 31, 2026)
  • Commerce/USTR monitoring and recommendations to President on partner compliance
  • potential subsequent orders memorializing trade agreements with partners near conclusion

Long term

  • ongoing tariff regime subject to further modification based on trade negotiation outcomes
  • potential additional action if emergency not resolved or partners retaliate
  • permanent remedy of trade barriers dependent on bilateral agreement conclusions

Risks & tensions

  • EU 15% floor creates asymmetric treatment that may provoke retaliation from Brussels
  • Biannual circumvention list weaponizes reputational risk for supply-chain due diligence but criteria undefined
  • 'On the verge of concluding' agreements with certain partners creates uncertainty for rates that may change with subsequent orders
  • Transshipment 40% penalty plus non-mitigable fines risks severe supply disruption if CBP enforcement aggressive
  • EO 14298 China carve-out preserved, maintaining separate bilateral tension track
Executive Order 14326: Further Modifying the Reciprocal Tariff Rates · Executive Orders