Further Modifying the Reciprocal Tariff Rates

7/31/2025

Executive Orders

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Action Summary

National Emergency Background:
- Addresses persistent large U.S. goods trade deficits deemed a national security and economic threat.
- Builds on Executive Order 14257 (April 2, 2025) by responding to disparities in bilateral trade practices and non-tariff barriers.
Tariff Modifications:
- Imposes additional ad valorem duties on goods from specified trading partners as detailed in Annex I.
- Modifies the Harmonized Tariff Schedule (HTSUS) per Annex II, with effective dates and transitional provisions.
- Special provisions for the European Union where:
  - If Column 1 Duty Rate is less than 15%, the total duty is adjusted to 15%.
  - If Column 1 Duty Rate is 15% or greater, no additional duty is imposed.
- Goods from foreign trading partners not listed in Annex I will incur a 10% additional duty.
Transshipment Penalties:
- Goods transshipped to evade applicable duties will face a 40% additional ad valorem duty, extra fines, and penalties.
- Biannual publication of a list detailing countries and facilities involved in circumvention schemes.
Implementation Measures:
- Authorities including the Secretary of Commerce, Secretary of Homeland Security, and the USTR, in consultation with other key officials, are empowered to implement this order.
- Agencies may use regulatory adjustments, temporary suspension or amendment of regulations, and Federal Register notices as needed.
Monitoring and Future Action:
- Ongoing monitoring by the Secretary of Commerce and USTR to assess the effectiveness of this order.
- Recommendations for additional measures if the emergency persists or if trade partners fail to take adequate steps.
Legal and General Provisions:
- Includes severability, ensures continuity of existing measures under EO 14257 (except as modified), and clarifies that no rights are created against the U.S. or its agencies.
- References that the order will not affect the measures in Executive Order 14298 regarding reciprocal tariff rates with the People’s Republic of China.
Annex I – Tariff Rates by Trading Partner:
- Lists countries and territories with their respective reciprocal tariff rates, ranging from 10% to 41%.
- Details specific adjustments for goods from the European Union based on their current HTSUS Column 1 Duty Rate.
Annex II Reference:
- Annex II provides additional modifications to the HTSUS to align with the new tariff structures.

Risks & Considerations

The modification of reciprocal tariff rates could lead to increased costs for imported goods, affecting the university’s procurement processes, especially for research equipment and materials sourced internationally.
There is a potential risk of strained international relations, which could impact Vanderbilt’s collaborations with foreign universities and research institutions, particularly those in countries affected by the new tariffs.
The imposition of additional duties may lead to retaliatory measures from affected countries, potentially impacting international students and faculty from those regions, as well as study abroad programs.
Changes in trade policies could affect the availability and cost of goods and services, necessitating adjustments in budget allocations and financial planning for university departments.

Impacted Programs

Vanderbilt’s International Programs may need to reassess partnerships and exchange programs with institutions in countries affected by the tariff changes.
The Office of Global Safety and Security might need to provide updated guidance and support for students and faculty traveling to or from affected countries.
Research departments that rely on international collaborations or imported materials may face challenges in maintaining their current operations and may need to seek alternative sources or adjust project timelines.
The Financial Aid Office may need to consider the financial implications for international students affected by changes in their home countries’ economic conditions due to the tariffs.

Financial Impact

The increased tariffs could lead to higher costs for imported goods, impacting the university’s budget for research and operational expenses.
Potential retaliatory tariffs from other countries could affect the university’s revenue from international students, who may face higher costs or barriers to studying in the United States.
Vanderbilt may need to allocate additional resources to manage the financial and logistical challenges posed by the new trade policies, including potential increases in administrative costs related to compliance and procurement.
There may be opportunities for Vanderbilt to engage in research and policy analysis related to international trade and economics, potentially attracting new funding and partnerships.

Relevance Score: 4 (The order presents a need for potential major changes or transformations of programs.)

Key Actions

Vanderbilt’s Office of Federal Relations should closely monitor the changes in tariff rates and their potential impact on research funding and international collaborations. Understanding these changes will be crucial for maintaining and expanding partnerships with foreign institutions and securing necessary resources.
The Vanderbilt Center for International Business should evaluate the implications of the modified tariff rates on global trade dynamics. This evaluation can help identify new opportunities for research and collaboration in international trade and economics.
Vanderbilt’s Procurement Office should assess the impact of the new tariff rates on the cost of imported goods and materials. This assessment will be essential for budgeting and financial planning, ensuring that the university can manage any increased costs effectively.
The Department of Political Science should conduct research on the broader geopolitical implications of the executive order. This research can provide valuable insights into how these changes affect international relations and economic policies, enhancing Vanderbilt’s role as a thought leader in political science.

Opportunities

The executive order presents an opportunity for Vanderbilt’s Owen Graduate School of Management to develop new programs focused on international trade and economic policy. By leveraging its expertise, the school can contribute to the education and training of future leaders in global commerce.
Vanderbilt can capitalize on the increased focus on trade and security agreements by developing new partnerships with international institutions. This could include joint research initiatives, student exchange programs, and collaborative curriculum development, enhancing Vanderbilt’s reputation and reach in the global academic community.
The emphasis on monitoring and recommendations offers an opportunity for Vanderbilt’s Law School to engage in policy analysis and advocacy. By providing evidence-based recommendations, the school can influence how these policies are implemented and used to support economic equity and access.

Relevance Score: 3 (The order requires some adjustments to processes or procedures due to potential impacts on international collaborations and research funding.)

Average Relevance Score: 4

Timeline for Implementation

Effective Date: The modifications to the Harmonized Tariff Schedule become effective for goods entered for consumption (or withdrawn from a warehouse for consumption) starting at 12:01 a.m. EDT, 7 days after the order date (i.e., August 7, 2025).
Exception for In-Transit Goods: Goods loaded onto a vessel in transit before 12:01 a.m. EDT, 7 days after the order date and entered for consumption before 12:01 a.m. EDT on October 5, 2025, remain subject to the previous duty rates.

Relevance Score: 5

Impacted Government Organizations

Department of Commerce: Tasked with modifying the Harmonized Tariff Schedule, implementing ad valorem duty changes, and coordinating policy adjustments through rule making.
United States Trade Representative (USTR): Responsible for monitoring trade conditions, recommending additional actions, and coordinating with other agencies on trade negotiations.
Department of Homeland Security (U.S. Customs and Border Protection – CBP): Charged with enforcing import regulations, determining cases of transshipment to evade duties, and applying penalties.
United States International Trade Commission (USITC): Engaged in advising on trade-related modifications and ensuring compliance with tariff adjustments.
Department of State: Consulted to provide guidance on foreign relations aspects that influence economic and national security considerations within trade policy.
Department of the Treasury: Involved in evaluating and managing the economic implications and financial oversight related to modified tariff rates.
Office of Management and Budget (OMB): Indirectly impacted as this order underscores adherence to budgetary, administrative, and legislative proposals during implementation.

Relevance Score: 3 (Six to ten federal agencies are directly impacted by the directive.)

Responsible Officials

Secretary of Commerce – Directed to take all necessary actions to implement the order, including modifications to the Harmonized Tariff Schedule, and to monitor trade conditions and emergencies.
Secretary of Homeland Security – Responsible for implementing transshipment provisions and, acting through the Commissioner of U.S. Customs and Border Protection, enforcing customs measures related to the order.
United States Trade Representative – Charged with coordinating trade policy modifications, monitoring the national emergency trade conditions, and advising the President on further necessary actions.
Secretary of State – Consulted to ensure that trade measures align with U.S. foreign policy objectives.
Secretary of the Treasury – Consulted for guidance on the economic impacts and fiscal implications related to the order.
Assistant to the President for Economic Policy – Provides economic policy input essential for the implementation of the order’s measures.
Assistant to the President and Senior Counselor for Trade and Manufacturing – Consulted on trade dynamics and manufacturing impacts stemming from the order.
Assistant to the President for National Security Affairs – Engaged in consultations to address the national security aspects inherent in the emergency trade directives.
Chair of the International Trade Commission – Consulted for technical expertise in trade classification and tariff modifications.
Commissioner of U.S. Customs and Border Protection – Acts under the direction of the Secretary of Homeland Security to implement enforcement measures regarding transshipment and tariff evasion.

Relevance Score: 5 (Directives affect high-level Cabinet officials and senior advisors, impacting national security and economic policy at the highest levels).