On July 30, the White House issued three executive orders in another flurry of changes to the tariff landscape. As a result of the executive orders, certain copper products and products of Brazil will be subject to 50 percent tariffs, and modified procedures for entering "de minimis" shipments valued at $800 or less will be suspended. We've summarized the new actions below.
Section 232 on Copper Products
The executive order on copper imposes a 50 percent tariff on imports of semi-finished copper products and certain "copper-intensive derivative products" based on the copper content of the article. Semi-finished copper products include, for example, pipes, wires, rods, sheets, and tubes, and "copper-intensive derivative products" include, for example, pipe fittings, cables, connectors, and electrical components. Such tariffs will apply only to the copper content of the products; the non-copper content of the products will be subject to any applicable reciprocal tariffs and IEEPA fentanyl tariffs. The new 50 percent tariff is effective 12:01 AM EDT on August 1, 2025.
The order specifically excludes application of the 50 percent copper tariff to upstream copper materials including copper ores, concentrates, mattes, cathodes, anodes, and scrap. These materials are also exempt from reciprocal tariffs because they are included in Annex II of Executive Order 14257. The order also directs the Department of Commerce to determine by June 30, 2026 if imposing duties of 15 percent on refined copper products is warranted. Such duties would come into effect January 1, 2027 and increase to 30 percent January 1, 2028.
In terms of tariff stacking, the executive order provides that if a product is classified in a provision subject to Section 232 tariffs on both copper and automobiles/auto parts, the 25 percent tariff applicable to automobiles and auto parts applies and not the tariffs on copper.
The executive order references a forthcoming annex that will provide a comprehensive list of semi-finished copper products and "copper-intensive derivative products" that will be subject to 50 percent tariffs on the noted deadline. The order also directs the Commerce Department to establish, within 90 days, a process for interested parties to request inclusion of additional derivative articles on the annex.
The executive order also indicates that the Secretary of Commerce recommended a number of actions under the Defense Production Act to support the U.S. copper industry, including: a domestic sales requirement for copper input materials starting at 25 percent in 2027 (and increasing to 30 percent in 2028 and 40 percent in 2029); a domestic sales requirement of 25 percent for high-quality copper scrap; and an export licensing requirement for high-quality copper scrap. The order instructs the Secretary to take all appropriate action to implement the recommended domestic sales requirements but does not mention the Secretary's recommendation on export controls.
Additional information is also available in the fact sheet published on the White House website yesterday afternoon. Several other Section 232 investigations on imports of lumber, semiconductors, pharmaceuticals, trucks, critical minerals, commercial aircraft, polysilicon, and unmanned aircraft systems (drones) are ongoing.
New Tariffs on Imports from Brazil
In support of a new 40 percent tariff on imports from Brazil, President Trump declared a new national emergency under IEEPA regarding the Government of Brazil's unusual and extraordinary policies and actions harming U.S. companies and free speech in Brazil. The executive order also specifically targets Brazilian Supreme Court Justice Alexandre de Moraes for the imposition of fines on U.S.-headquartered companies and the ongoing trial of former president of Brazil Jair Bolsonaro, which the order states is based on "unjustified criminal charges."
The 40 percent tariff will be effective 12:01 EDT August 6, 2025 and will be in addition to the 10 percent rate currently in effect on goods from Brazil under IEEPA. The tariffs will not apply to products that are subject to Section 232 duties.
The executive order exempts a large number of tariff categories covering silicon metal, iron, civil aircraft, alumina, tin ore, precious metals, energy products, orange juice, and fertilizers. A full list of exempt subheadings is included in the executive order. An in-transit exemption applies to merchandise loaded prior to August 6 that is entered for consumption before 12:01 EDT on October 5, 2025.
The executive order and the fact sheet were published on the White House website yesterday afternoon.
Suspension of De Minimis
The new executive order suspends so-called de minimis treatment of low-value shipments effective 12:01 a.m. EDT on August 29, 2025. De minimis treatment currently allows packages from all countries valued under $800 to enter the United States duty-free. The Administration previously suspended the provision for packages of Chinese-origin; this new executive order makes no distinction based on country of origin. All packages would therefore be subject to applicable ad valorem duties. Suspending de minimis procedures has long been a policy issue considered by the Administration, as well as the Biden Administration, as we discussed in a previous blog post.
For packages valued under $800 sent through international postage, the executive order also allows importers to choose to pay either the applicable IEEPA tariff rate (reciprocal or IEEPA fentanyl) or a flat rate based on the country of origin of the merchandise. This option will only be available for the next six months.
The executive order and fact sheet were published on the White House website yesterday afternoon.
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