U.S. Tariff Measures Updates : Postponement of Reciprocal Duties, Ongoing EU-U.S. Negotiations, and Upcoming Elimination of the De Minimis Import Exemption

15 July 2025 2 min read

Highlights of the Week of July 9^th, 2025

The reciprocal duties on EU products – set at 20% – which were to take effect, on July 9^th, replacing the 10% additional duties currently in force, were postponed to August 1^st by a presidential decree dated July 7^th. On July 12^th, President Trump announced that he would increase them to 30% if no agreement was reached by August 1^st.

This tariff readjustment, while remaining dissuasive, aims to fulfill President Trump’s explicit objective of encouraging the relocation of productive activities back to the U.S., as well as to support political negotiations and the conclusion of bilateral agreements designed to correct the trade imbalances identified by his administration.

In particular, this new timetable offers additional time for negotiations with the European Union Commission on behalf of the Twenty-Seven. During a press conference held on July 9^th, the Chair of the International Trade Committee, Bernd Lange, recalled the Union’s objective of reaching a balanced agreement that would not be imposed unilaterally by Washington. In light of President Trump’s proposal to grant a 10% baseline tariff to all EU products, with a few exceptions, the agreement under consideration seems to take as a model the one currently in force between the United Kingdom and the U.S. The acceptance of this 10% baseline tariff by the EU would then be used as leverage to obtain preferential treatment – or even an exemption- from the tariffs currently applied to certain sectors. Steel and aluminum – taxed at rates of up to 50% – are a first example, but other affected sectors include aerospace, automotive, alcoholic beverages, cosmetics, and pharmaceuticals—all of which are top concerns for the Union.

Among these developments, a quieter measure – yet not without consequences – has also been adopted. This is the elimination of the ‘de minimis‘ rule (or $800 duty-free exemption considering to the threshold adopted in 2016), which allows shipments with an aggregate value up to $800 per day per person to be imported free of duties and taxes into the U.S. This elimination is the result of a provision of the wide-ranging budget policy bill known as ‘The One, Big, Beautiful Bill‘, signed into law on July 4^th by President Trump. The latter provides for the pure and simple abolition of the legal basis of the exemption, taking effect from July 1^st, 2027. This process is similar to the proposal presented as part of the EU Customs Reform to eliminate the €150 threshold for duty exemption that currently applies within the EU.

This implied that, going forward, all shipments — regardless of their value or origin — will be subject to import duties and taxes, from the first dollar. This measure, aligned with the treatment of Chinese products since May 2, 2025, has significant consequences for B2C flows in particular.

Tools available to operators

While waiting for a possible transatlantic agreement, operators must be twice as vigilant about customs fundamentals and determine the most appropriate responses to their needs with regard to the triptych – tariff classification, origin, and customs value.

Tariff measures differ according to the US Harmonized System (‘HTSUS’) classification of products. A compliance review must therefore be conducted before importation. When possible, this analytical work would allow for the application of a benefit of one of the preferential treatments by type of product that could result from EU-U.S. negotiations. In addition, the way the additional duties introduced on April 2^nd, 2025, have been implemented so far demonstrates the relevance of ongoing monitoring of the measures applicable to HTSUS codes declared upon import and the provisions relating to the list of exemptions and preferential treatments.

The ‘bilateralist’ orientation of U.S. trade policy emphasizes the origin of products – which is distinct from their geographical origin. On the one hand, some areas benefit (or will benefit) from preferential rates for products whose preferential origin, specific to a free trade agreement, will be certified. On the other hand, an in-depth analysis of the origin and, where applicable, supply chain restructuring, must enable the identification of an eventual ‘US Content’ part that is not subject to additional duties, the determination of the place where the last ‘substantial transformation’ took place, and, where appropriate, to decide on its relocation based on the intended benefit for products destined for the U.S. market.

Given the elimination of the ‘de minimis’ rule by July 2027, customs value – which is the basis for calculating duties – remains an important one among the instruments to be favored. Where possible, a transition to the business-to-business (B2B) model for U.S. import flows will offer more leverage. Firstly, companies may determine the customs value based on a transfer price established in a sale between related companies, provided that applicable tax rules are complied with. Where applicable, and in determining the customs value, this transfer price may be adjusted for certain costs whose inclusion in the value is not mandatory. In addition, its retroactive adjustments, considered as part of the value previously declared, may justify a possible refund of customs duties previously paid. Finally, operators can target the application of the ‘First Sale Rule‘. In a scheme involving a middleman, this rule allows the customs value to be based on a previous sale in the supply chain, often set at a lower price. However, this mechanism is subject to strict conditions in terms of logistics, traceability, and documentation, which require rigorous anticipation, both on a contractual and operational level.