Welcome to this week’s Sourcing Spotlight.
In this weeks edition, we will be fully concentrating on the two new executive orders reset on U.S. tariffs: what changed, why it matters, and what to watch next.
The White House signed two orders overnight that immediately raise the tariff on Canadian imports to 35% (non-USMCA goods) and finalize a “reciprocal” tariff schedule for dozens of other countries that will phase in over the coming week. Most partners now face headline rates between 10% and 41%, with Canada singled out for same-day implementation and a new 40% penalty on goods deemed trans-shipped to evade duties.
Order #1: The IEEPA, aimed at Canada
Canada has been singled out. The new executive order increases Canada’s tariff from 25% to 35% on non-USMCA goods effective today, 1 August, alongside a 40% trans-shipment tariff will be applied if U.S. Customs finds the goods were routed through a third country to dodge the measure. USMCA-qualifying goods remain exempt.
Why the White House says it’s doing this. The order invokes IEEPA and frames the move as a response to a national emergency tied to illicit fentanyl and other synthetic opioids “flowing across the northern border,” citing claims of cartel-linked “super-labs” operating in Canada and seizure totals this fiscal year that exceed the previous three years, with amounts “enough to kill 16 million people.”
Order #2: The “reciprocal” tariff schedule
Since 2 April, the U.S. has applied a 10% baseline tariff to all countries, with higher country-specific rates (effective 9 April) for partners with large U.S. goods-trade deficits. Yesterday’s order modifies those rates: countries named in Annex I get specified tariffs; all others remain at 10%.
To give customs systems time to update, most of the new/adjusted rates take effect on 7 August, except Canada, which moved today.
The administration frames the policy as ensuring “fair, balanced, reciprocal” trade, strengthening the defence industrial base, and encouraging firms to manufacture in the U.S. (it promises faster approvals and says no tariff applies if production is moved to the U.S.).
Claimed deals/investment. The White House highlights headline commitments it says were unlocked by the tariff strategy:
EU: by 2028, $750B in U.S. energy purchases and $600B in U.S. investments; accepts a 15% baseline.
Japan: $550B in U.S. investments/market access at a 15% baseline.
UK, Indonesia, Philippines, South Korea, Vietnam: expanded U.S. export access and investment.
Country snapshot (headline rates the administration is publishing)
Canada: 35% from 1 Aug; 40% trans-shipment penalty; USMCA goods exempt.
European Union: ~15% baseline; metals remain under separate measures. Activation aligned with 7 Aug window.
Mexico: 90-day extension on current posture; no step-up this week.
India / Taiwan / South Africa / Switzerland: ~25% / 20% / 30% / 39% respectively, staging with the 7 Aug rollout.
Brazil: up to ~50% on selected lines; check HS specifics.
(Final rates are subject to HS-line exceptions and ongoing talks; use broker guidance for product-level mapping.)
China: talks on a separate track, deadline 12 August
A 90-day tariff truce with China remains in place, keeping most China-origin imports at the 10% baseline for now. Officials signalled they may seek an extension, but the call is up to President Trump; without a deal or extension by 12 August, higher country-specific rates could snap back. Expect tighter enforcement against suspected trans-shipment.
For more of a breakdown, please see the full article below.
/
Archived Articles
DISCOVER OUR PREVIOUS ARTICLES….
From new AI concepts that could benefit you, to new technologies and strategies to navigate the current global economy. Read through for impactful resources to help you become proactive in your business.
How Stoke-on-Trent Kept Britain’s Ceramics Alive & What Can We Learn From It.
Walmart is using AI tool Pactum to negotiate with suppliers, and 85% prefer it to a human.
As tariffs escalate, Illinois finds itself caught in the crossfire. From manufacturing supply chains tied to Canada and Mexico, to billions in farm exports now facing retaliation
That’s it for this weeks Sourcing Spotlight.
Stay ahead of the curve by following us daily on Instagram at @thesourcingspotlight for fresh updates. Craving deeper insights? Dive into exclusive, in-depth analysis with our premium subscription, just £9.99 a month, and the first month is on us! Get all your most important small business news in one place, helping you navigate information effortlessly with actionable and insightful updates.
This Newsletter is sponsored by
Unlock the most powerful, structured system for Amazon success. With over 10 years of operating experience, billions in collective private label sales, and insights from thousands of top-performing sellers, we’ve engineered a clear roadmap for profitable growth. Our proven tools, strategies, and community provide everything you need to scale faster, smarter, and more confidently—without the guesswork.
Until next time,
Quiet sourcing. Loud impact.
