In what has now become a familiar pattern, on July 31, 2025, markets throughout the world were once again disrupted by wide-ranging actions on tariffs instituted by the US administration.
Once the dust had settled on last week’s announcements, various countries and industries could take stock of their position (and others are still looking to “sweeten the deal”) before these tariffs take effect on August 7, 2025.
For companies exporting Canadian-made apparel to US, little has changed in terms of tariffs. Owing to the exemption for CUSMA-compliant goods, the increase in tariffs on Canadian goods to 35% has little impact on this industry.
Not so for many other countries that are facing an increasing tariff burden, albeit generally less than was originally outlined in April under the so-called "liberation day" initiative. Taken together, the US seems to be trying to establish a tariff baseline of 15% for virtually all countries.
In a separate announcement last week, the Trump administration also took aim at the de minimis program, which allows duty-free, simplified entry for shipments valued up to $800 into the United States.
This program has been criticized in the US for allowing companies such as Shein and Temu to flood the US market with ultra-fast fashion goods while paying no duties. It was also blamed for allowing shipments of illicit drugs to enter the United States without CBP scrutiny.
Earlier this year, the de minimis program was effectively eliminated for goods from China, Hong Kong and Macau.
The announcement made on July 30 indicated that this tariff benefit would end for all countries, effective August 29.
New member-only news section
Partially in response to these increasing actions relating to tariffs and trade we have set up a new member-only news on our website. We have added multiple backgrounders on various policies including de minimis, reciprocal tariffs, CUSMA renegotiation and many others.
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