Skip to content

Tariffs, Trade Negotiations, and No More Extensions!

 

President Trump reached new trade deals with the European Union and Japan. As of August 1st, the tariff rates will be imposed on the following countries:

  • Japan Deal – 15 %
  • EU Deal – 15%
  • UK Deal – 10%
  • Philippines Deal – 19%
  • Indonesia Deal – 19%
  • Vietnam Deal – 20% - 40% on transshipment

The Secretary of Commerce has initiated investigations under Section 232 of the Trade Expansion Act of 1962 to determine the effects on the national security of imports of the following:

  • Copper
  • Timber and Lumber
  • Semiconductors
  • Pharmaceuticals
  • Trucks
  • Critical Minerals
  • Commercial Aircraft
  • Polysilicon
  • Unmanned Aircraft Systems

Since President Trump began his second term, new U.S. tariffs mark the largest protectionist move in nearly a century, despite some pauses and exemptions. These tariffs have unsettled global markets and concerned trading partners as the U.S. has imposed broad and sector-specific levies on imports from all its trading partners. President Trump has implemented:

  • A 30% tariff is currently imposed on products originating from China, reduced from the previous rate of 145% that was in effect for one month. This adjustment follows a mid-May agreement between the two nations to temporarily lower tariffs on each other's exports for a 90-day period.
  • A minimum tariff of 10% applies to other imports, subject to certain exceptions. Additional reciprocal tariffs introduced by President Trump in April, targeting goods from countries with significant trade surpluses with the United States, have been paused to facilitate further negotiations. As of late July, President Trump indicated that most major U.S. trading partners could expect reciprocal tariffs ranging from 15% to 50%, signaling a willingness to implement substantial duties pending new trade agreements.
  • Goods imported from Canada and Mexico that are not covered under the United States–Mexico–Canada Agreement (USMCA) are subject to a 25% blanket levy. However, President Trump has announced potential increases to 35% for Canadian products and 30% for Mexican goods effective August 1. Imports of Canadian energy products are assessed a reduced 10% duty.
  • A 50% tariff is levied on imports of steel and aluminum products, an increase from the previous 25% as of June 4. The United Kingdom has secured an exemption, with its steel and aluminum exports subject to a 25% duty pending finalization of a quota-based zero-tariff agreement.
  • Imports of fully assembled automobiles are taxed at a rate of 25%, with exceptions granted to vehicles from Canada and Mexico. A 25% tariff on vehicle parts is being phased in over two years, although components meeting USMCA requirements are exempt. Automobile imports from Japan and the European Union are subject to a reduced 15% duty due to trade agreements with the Trump administration.
  • Lastly, a 54% tariff or a flat fee of $100—whichever is higher—is imposed on packages shipped directly to consumers from mainland China or Hong Kong with a retail value of $800 or less. Prior to May 2, such shipments qualified for duty-free entry into the United States under the "de minimis" exemption.

At his confirmation hearing, Scott Bessent outlined three intended uses of tariffs by President Trump: correcting unfair trade, generating federal revenue to offset tax cuts, and leveraging negotiations with foreign powers instead of relying on sanctions. Tariffs have already increased revenue, with June's $27 billion in customs duties almost quadrupling the amount collected in the same month in 2024.

Return to the ASAtoday page to read more articles