SIA Alerts Security Industry to New Tariff Rates Taking Effect Aug. 7

The Trump administration has announced a new round of tariff increases impacting imports from more than 70 countries, effective August 7. The changes, issued via executive order on July 31, are based on the administration’s assessment of bilateral trade reciprocity, retaliatory measures, and national security alignment.

According to the Security Industry Association (SIA), these updated country-specific tariff rates replace the prior 10% universal rate and introduce a more tailored structure. Products covered under the U.S.-Mexico-Canada Agreement (USMCA) remain exempt, provided they comply with USMCA rules of origin.

Key takeaways for the security industry include:

• Enhanced enforcement: U.S. Customs and Border Protection is now authorized to impose an additional 40% tariff on goods found to be “transshipped” in order to evade U.S. tariffs by misrepresenting their country of origin.

• Continued exemptions: Product categories excluded under previous announcements remain exempt, including those already covered by Section 232 tariffs, and items such as pharmaceuticals, semiconductors, copper, critical minerals unavailable domestically and others.

• China’s tariff rate unchanged (but more may be coming): Imports from China are currently subject to a combined 54% tariff, stemming from earlier actions taken in March and April. An additional 34% tariff was scheduled for Aug. 12 but has been delayed as negotiations continue.

• Negotiated reductions for some countries: The administration lowered proposed rates for several countries following trade discussions. Bangladesh’s tariff rate, for example, dropped from 35% to 20%, while Cambodia, Indonesia, Malaysia and Thailand were set at 19%. Japan and South Korea both received 15% rates.

• Product-specific tariffs still apply: Globally imposed tariffs on specific products remain in effect and generally supersede country-based rates. Cumulative rules were updated via executive order on April 29.

• Future tariffs possible: Nine active Section 232 investigations could result in additional product-specific tariffs, including on semiconductors, critical minerals, uncrewed aircraft systems, pharmaceutical ingredients and more — categories that may impact security product supply chains.

SIA advises companies to review the Harmonized Tariff Schedule of the United States to determine which rates apply to their imports. The association is also soliciting industry feedback through a brief survey to better understand how security companies may be affected by the evolving tariff environment.

“If you are particularly concerned about a specific tariff, now is the time to make us aware and tell your story,” writes Lauren Bresette, senior manager, Government Relations, SIA.

Read the full SIA blog here.