Updated August 7, 2025 | Written by Kellen Staff
Updates on Tariff Actions
August 7, 2025: Since the pause of the U.S. reciprocal tariffs on dozens of countries in April, there has been significant trade activity between the U.S. and key trading partners. On July 31, President Trump signed an executive order modifying reciprocal tariff rates for certain countries in order to address trade deficits. As noted in a fact sheet published alongside the executive order, the modified rates follow significant action by several countries which have led or are leading to “meaningful trade deals and security agreements,” as well as actions by some countries which “do not sufficiently address the national emergency [Trump] declared on April 2,” and no action take by some countries. The executive order includes an updated Annex I which outlines those countries facing higher reciprocal tariff rates, with it being noted that those countries not listed are subject to 10% rates. These rates go into effect on August 7. The executive order also includes Annex II, which outlines updates to the Harmonized Tariff Schedule of the U.S. (HTSUS)
The fact sheet also outlines trade deals which have been made since April, including:
- A trade deal with the European Union in which “the EU has agreed to purchase $750 billion in U.S. energy and make new investments of $600 billion in the United States, all by 2028, while accepting a 15% tariff rate.”
- A trade deal with Japan where “Japan has agreed to invest $550 billion in the United States to rebuild and expand core American industries, as well as to further open its own market to U.S. exports, all while paying a baseline 15% tariff rate.”
- A trade deal with the United Kingdom (UK) which “includes billions of dollars of increased market access for American exports.”
- “Additional trade deals with Indonesia, the Philippines, South Korea, Vietnam, and others will protect our industries, open foreign markets, and encourage foreign investment in American industries.”
Below are recent updates for several key trading partners of potential interest.
CANADA: In addition to the executive order on modifying reciprocal tariff rates, on July 31, President Trump also issued an executive order noting that due to “Canada’s lack of cooperation in stemming the flood of fentanyl and other illicit drugs across our northern border…and Canada’s efforts to retaliate against the United States,” the U.S. is increasing the tariff rate from 25% to 35% for Canadian-origin products, set to go into effect on August 1. As has been the case, all products which fall under the U.S.-Mexico-Canada Agreement (USMCA) are exempt from tariffs. The Administration also published a fact sheet alongside the executive order. In response to the increased tariff rate, Canadian Prime Minister Patrick Carney issued a statement expressing disappointment in the action, particularly given the impacts on key sectors of the Canadian economy, such as lumber, steel, aluminum, and autos. Carney also noted the actions taken by Canada to address drug trafficking and border security given the rationale provided by the U.S. in enforcing the higher duties. The U.S. and Canada remain in negotiations to figure out a new trade deal with trade officials from both countries continuing to meet.
MEXICO: On July 31, President Trump posted on social media that he would be pausing any increase in tariff rates on Mexico for 90 days, but that “Mexico will continue to pay a 25% Fentanyl Tariff, 25% Tariff on Cars, and 50% Tariff on Steel, Aluminum, and Cooper.” He also noted that the U.S. and Mexico hope to reach a new trade deal during the pause. The pause follows a previous threat from Trump to increase the rate from 25% to 30%, as noted in a Bloomberg article. As with Canada, those products which are USMCA-compliant are exempt from tariffs.
EUROPEAN UNION: As noted in a fact sheet from the White House, on July 27, President Trump announced a trade deal with the European Union (EU). The deal resulted in a 15% tariff rate for EU exports to the U.S., including for autos, auto parts, pharmaceuticals, and semiconductors. However, the 50% tariff rate for steel, aluminum, and cooper and their derivatives will remain in place. As noted in the fact sheet, the trade deal also includes a $600 billion investment from the EU into the U.S. as well as the purchase of $750 billion in U.S. energy through 2028. The EU also agreed to address various tariff and non-tariff barriers to trade, including for agricultural exports. In response to this deal, on August 4, as noted in an article from NBC News, the EU agreed to postpone planned countermeasures, which were set to begin on August 7, for six months.
CHINA: In May, the U.S. and China announced an agreement for a trade deal with higher tariff rates being paused for 90 days. As noted in a fact sheet from the White House, the agreement led to the U.S. pausing the 34% reciprocal rate for 90 days while retaining the 10% tariff rate. China and the U.S. have continued to work on negotiations ahead of the end of the current pause period, which is set to expire on August 12. As noted in a New York Times article, while talks between the two countries have been “constructive,” it is up to President Trump to determine whether an additional pause would be granted, with Treasury Secretary Bessent noting that if Trump approved another pause, “it is likely to be for another 90 days.” In June, the two countries worked on a trade agreement framework with China relaxing “restrictions on rare earths,” with the U.S. rolling back “limits on exports of U.S. products and technology, as well as proposed visa restrictions.” President Trump has also recently indicated potential secondary sanctions on countries which import Russian oil, which includes China.
BRAZIL: Following criticism by the current Brazilian administration regarding their treatment of former Brazilian president Jair Bolsonaro, President Trump announced plans for increased tariff rates on Brazil. As noted in a July 30 executive order and accompanying fact sheet, the U.S. has implemented an additional 40% tariff on Brazil, “bringing the total tariff amount to 50%, to deal with recent policies, practices, and actions by the Government of Brazil that constitute an unusual and extraordinary threat to national security, foreign policy, and economy of the United States.” Such policies and actions include those “harming U.S. companies, the free speech rights of U.S. persons, U.S. foreign policy, and the U.S. economy,” along with the “politically motivated persecution, intimidation, harassment, censorship, and prosecution of former Brazilian President Jair Bolsonaro and thousands of his supporters.” The increased duties go into effect on August 6. As noted in the executive order, there are a number of exemptions to the increased rates, including agricultural products (e.g., Brazil nuts and orange juice), coal and related derivatives, fuel products, fertilizer products, rubber products, wood products, metal products, electronics, aviation products, various equipment and accessories, and various furnishings. As noted in a Reuters article, Brazil plans to “challenge the U.S. decision through the appropriate channels, either within U.S. jurisdiction or before international bodies.”
INDIA: As with China, India is a significant importer of Russian oil, which threatens to increase their potential tariff rates from the U.S. As noted in an article from The Hill, in July, President Trump noted the U.S. would impose a 25% tariff on India. In an August 4 post on Truth Social, Trump noted that the U.S. will “be substantially raising the Tariff paid by India to the USA” as India is “buying massive amounts of Russian Oil.” The article in The Hill also notes that Trump had previously threatened higher tariffs on India due to their purchase of Russian military equipment. India has indicated they would continue to buy Russian oil as their relationship with Russia is “steady and time-tested” and as their “stance on security energy is guided by the availability of oil in the markets.” While the U.S. had previously noted positive negotiations with India on a trade deal, no formal deal has been announced.
July 9, 2025: Today, the Trump administration announced that the implementation of new global reciprocal tariff rates, initially scheduled for July 9, will take effect on August 1, allowing additional time for negotiations. Introduced as part of the “Liberation Day” trade initiative, these tariffs impose country-specific rates ranging from 25% to 40% on 14 nations, including Japan, South Korea, Malaysia, and Thailand. The Executive Order does not affect existing tariffs on imports from China, which remain under separate designations. Over the past week, President Trump has sent formal notification letters to the affected countries, signaling that these tariffs will take effect on August 1 unless bilateral agreements are finalized. The White House released a fact sheet detailing the specific tariff levels by country. Additionally, the Commerce Department shared procedures for companies seeking to be included or excluded from the new tariffs, with eligibility based on supply chain, origin, and national security criteria. Finally, President Trump announced that countries aligning with BRICS “anti-American policies” could face an added 10% tariff. While no official policy has been issued, the post reflects earlier threats tied to BRICS discussions on forming a joint currency.
May 29, 2025: A federal appeals court lifted the first of two rulings blocking President Trump’s tariffs, granting a temporary stay. The appeals court set a briefing schedule through June 9 for the parties to present their arguments, after which the court will rule on whether to grant a longer pause.
May 29, 2025: Yesterday, the U.S. Court of International Trade blocked President Trump’s ability to impose his tariffs on U.S. trading partners, ruling he overstepped his legal authority under federal law. The decision by a panel of federal judges was in response to lawsuits filed by small businesses and several states, which argued the tariffs were unconstitutional and lacked precedent. The court found President Trump lacked the legal power to impose broad global tariffs under the International Emergency Economic Powers Act (IEEPA) of 1977, emphasizing the law does not grant the president unlimited authority to regulate imports. The ruling gave the executive branch up to 10 days to complete the process of halting the tariffs. A White House spokesman sharply criticized the court’s ruling, saying, “It is not for unelected judges to decide how to properly address a national emergency,” he said, adding that Mr. Trump would use “every lever of executive power to address this crisis.” The Trump administration announced plans to appeal the decision, which could impact existing trade negotiations and agreements with countries such as the U.K. and China.
May 25, 2025: Following a request from European Union (EU) Leaders, for more time to negotiate a trade deal, and a conversation with to Ursula von der Leyen, president of the European Commission, for more time to negotiate a trade deal, President Donald Trump announced today he would delay imposing new tariffs on all imports from the EU until July 9, 2025. The move helps to ease trade tensions between the two and briefly boosts U.S. markets.
May 12, 2025: At a press conference in Geneva, the United States and China officials announced an agreement to reduce most of the recently imposed tariffs and implement a 90-day pause in their ongoing trade dispute to allow for further negotiations. Financial markets responded positively to the development, which helped ease concerns over global economic instability. As part of the agreement, the United States will reduce its tariff rate on Chinese imports from 145% to 30%, while China will lower its tariff rate on U.S. goods from 125% to 10%.
May 8, 2025: Today, President Donald Trump and UK Prime Minister Keir Starmer announced a new, “full and comprehensive” trade agreement between the United States and the United Kingdom. The agreement aims to strengthen transatlantic economic relations by lowering tariffs on British steel, aluminum, and automobiles while expanding market access for key U.S. agricultural exports, including beef. The UK will join a broader U.S. economic security framework as part of the agreement, deepening collaboration in advanced technology and defense. While still being finalized, this deal intends to drive job creation, boost investment, and promote sustained economic growth in both nations.
April 10, 2025, 5:00 PM ET: Yesterday, President Trump announced he was enacting a 90-day pause for the reciprocal tariffs, as noted in a post on Truth Social. Along with pausing the reciprocal tariffs and lowering the rate to 10%, he announced an increase in the tariff rate for China to 125%, effective immediately. The White House also published an executive order regarding the amended reciprocal tariffs, which notes the pause of 90 days following outreach from “more than 75 other foreign trading partners, including countries enumerated in Annex I to Executive Order 14257.” As noted in the order, the 90-day pause would delay enforcement of the reciprocal tariffs until July 9, 2025, and these countries would be subject to the 10% baseline rate. Of note, as the U.S. implemented an additional 20% tariff on China due to concerns around fentanyl, the total tariff rate for China is 145%, as noted by a White House official. The executive order also stated the U.S. would apply tariffs on small parcels previously exempt from duties. Starting May 2, the U.S. will tax imports of shipments priced up to $800 at a rate of 120%. The U.S. will also increase the per postal item fee on goods between May 2 and June 1 to $100. This escalation towards China follows a back-and-forth between the two nations, which saw each raising levies over the past week, with China announcing plans yesterday to raise the rate on U.S. imports to 84%.
While there is the 90-day pause to move non-exempt countries besides China to a 10% tariff rate, the other tariffs which have been implemented remain in place, including the 25% tariff on autos, the 25% steel and aluminum tariffs, and the 25% tariffs on non-U.S.-Mexico-Canada Agreement (USMCA) compliant goods from Canada and Mexico. In comments made after the announcement to reporters, President Trump noted he may look at tariff exemptions for some companies. He had previously indicated there would be no exemptions or exclusions, though there are different opinions amongst his Cabinet and advisors on the possible use of exemptions. The president also acknowledged that the volatility of the markets following the tariff announcements and implementation played a role in his decision to pause the reciprocal tariffs.
The president and administration officials indicated the pause allows countries to negotiate with the U.S. on trade deals, which could result in those countries not facing higher duties following the 90-day pause if they decrease their tariffs on the U.S. or remove other non-tariff barriers. Many countries welcomed the pause for reciprocal tariffs, particularly those facing higher duties, including Malaysia, Vietnam, South Korea, and Thailand. However, even with the pause, uncertainties remain, which will continue to impact markets and may even impact negotiations on trade deals between countries and the U.S., particularly if the U.S. is not viewed as a reliable trading partner.
April 2, 2025, 5:00 PM ET: President Trump officially announced reciprocal tariffs for imports from 60 countries, including several long-standing allies, as well as a baseline 10% tariff for all imports, declaring a national economic emergency. The president emphasized that while these tariffs will not be fully reciprocal, they aim to achieve a “fair” balance. A baseline 10% minimum tariff was introduced for all imports, and then higher reciprocal tariff rates will be applied for those countries with larger trade surpluses with the U.S., including a 34% rate for China, a 20% rate for the European Union, a 25% rate for South Korea, a 24% rate for Japan, and a 32% rate for Taiwan. These reciprocal tariffs will take effect on April 9 at 12:01 AM ET, and the baseline tariffs will go into effect on April 5 at 12:01 AM ET. In addition, the administration will impose a 25% tariff on all foreign-made automobiles starting April 3 at 12:01 AM ET. Additional import taxes will also be levied on cars, semiconductors, and pharmaceuticals—these taxes will be applied “on top of” the reciprocal tariffs. President Trump indicated that countries wishing to avoid these measures could choose to manufacture their products within the United States. This announcement represents a significant escalation in the ongoing trade tensions, with broad potential consequences for global trade and economic stability. The new tariffs will impact key industries, including agriculture, manufacturing, and the medical sector. Notably, the administration announced that it will continue the U.S.-Mexico-Canada Agreement (USMCA) exemption for Canada and Mexico tariffs, so neither country will be subject to the reciprocal tariffs. White House Fact Sheet.
March 4, 2025, 12:01 AM ET: President Trump officially imposed a 25% tariff on nearly all goods imported from Mexico and Canada, alongside an additional 10% tariff on goods from China. As the top three export markets for the United States, these countries accounted for more than 40% of total U.S. imports last year. The imposition of these tariffs marks a significant escalation in trade tensions. It has triggered a reciprocal trade war, which could have widespread economic consequences, impacting agriculture and manufacturing industries. In response, China, and Canada swiftly retaliated, announcing their own tariffs on U.S. goods. China will impose tariffs on $21 billion worth of American agricultural and food products, including 15% tariffs on chicken, wheat, corn, and cotton, as well as 10% tariffs on imports of sorghum, soybeans, pork, beef, seafood, fruits, vegetables, and dairy products. Beijing has also imposed export and investment restrictions on 25 U.S. companies on the grounds of national security. Canada also announced 25% tariffs on $30 billion worth of U.S. goods just after midnight, though it has yet to specify which products are affected. Mexico is expected to announce its response later today.
Feb. 28, 2025, 12pm ET: After a one-month pause, tariffs, a signature part of Trump’s campaign, are set to take effect beginning March 4. The President is promising a 25% tariff on goods from Canada and Mexico and an additional 10% on goods from China. The taxes will impact over $1 trillion of imports and likely start a trade war in retaliatory tariffs. The President has claimed that Canada, Mexico, and China have allowed illicit drugs and illegal immigrants into the U.S., and the tariffs are meant to spur an increase in North American border security and crackdown on the illegal fentanyl trade in China.
Feb. 13, 2025, 2pm ET: President Donald Trump unveiled a plan today to raise tax rates on imports from other countries in an effort to eliminate trade imbalances. The tariffs, enacted via executive action, could boost U.S. revenue but may spark a global trade war and exacerbate rising inflation. These reciprocal tariffs target countries imposing import duties on U.S. goods, adding to the 25% tariffs on steel and aluminum and a 10% across-the-board tariff announced earlier this week. The tariffs will not take effect immediately, allowing nations time to negotiate new trade terms with the U.S., according to a White House official.
Feb. 10, 2025, 6pm ET: President Trump today announced a 25% tariff on all steel and aluminum imports, including finished metal products. The new tariffs will apply to all trading partners, with no exemptions, including Canada and Mexico, the United States’ top two foreign suppliers of these metals. This move follows last week’s 10% tariffs on goods from China and the currently suspended 25% levies on Canada and Mexico. Additionally, the president has outlined plans for reciprocal tariffs against other nations. The tariffs were approved under Section 232 of the Trade Expansion Act, which grants the president broad authority to impose trade restrictions for national security reasons. Trump had previously invoked this same provision to implement steel and aluminum tariffs during his first term in office.
Feb. 4, 2025, 9am ET: The United States imposed a 10% tariff on Chinese imports starting today. In response, China retaliated with targeted tariffs and issued warnings to several U.S. companies, including Google, about potential sanctions. President Trump is scheduled to speak with Chinese President Xi Jinping in the coming days.
Feb. 3, 2025, 5pm ET: After discussions with Mexican President Claudia Sheinbaum and Canadian Prime Minister Justin Trudeau, President Donald Trump announced a 30-day delay in imposing tariffs on Mexico and Canada. This delay follows agreements by both neighboring countries to enhance border security efforts. As of this posting, tariffs on China remain in effect and are scheduled to take effect on Tuesday.
What Happened?
On Saturday, February 1st, the White House officially announced that President Donald Trump would impose new tariffs on Canada, Mexico, and China. Senior figures on Capitol Hill were briefed on the decision.
Trump is imposing a 25% tariff on imports from Canada and Mexico and a 10% additional tariff on imports from China. Energy resources from Canada will have a lower 10% tariff.
The White House fact sheet is available here.
On What Authority did the President do This?
Citing an emergency situation from the extraordinary threat posed by undocumented immigrants and illegal drug trafficking, including fentanyl, the President exercised his authority under the International Emergency Economic Powers Act (IEEPA) to impose tariffs on Mexico, Canada, and China. This is an unprecedented action under the IEEPA, and it is unchartered legal territory.
The Executive Orders were published on February 1, 2025.
When Will this Take Effect? For How Long?
The tariff actions against Mexico, Canada, and China will begin on February 4, 2025.
It is unclear how long the tariffs will be imposed. The order notes that the tariffs will be removed when the flow of migrants and illegal fentanyl into the United States is alleviated.
What was the Response?
Both Canadian Prime Minister Justin Trudeau and Mexican President Claudia Sheinbaum announced counter-tariffs on Saturday.
Canada will impose 25% tariffs on $155 billion worth of U.S. goods, starting with $30 billion on Tuesday and followed by $125 billion in 21 days.
Mexico plans retaliatory “tariff and non-tariff measures,” in retaliation for Trump’s move, but the potential scope was not clear.
China said it would file a legal case against the United States at the World Trade Organization and vowed to take “corresponding countermeasures” without offering details.
Reactions from the business, manufacturing, and building trades were swift and harsh.
See a sampling of statements from the U.S. Chamber of Commerce, the National Association of Manufacturers, the National Association of Home Builders, and the Distilled Spirits Council.
