Below is an overview of the trade announcements from today:
- Suspending Duty-Free De Minimis Treatment for All Countries: President Trump signed an executive order suspending duty-free de minimis treatment on all imports regardless of value, country of origin, mode of transport, or method of entry. Most products imported into the United States by manufacturers of food processing machinery and equipment are likely commercial shipments valued over the $800 value threshold and therefore would not qualify for De Minimis treatment. However, the suspension will impact imports of any low value spare parts or components which were previously duty free.
- Section 232 Copper Tariffs: As a result of the Section 232 investigation into copper, President Trump signed a proclamation imposing universal 50% tariffs on non-US origin copper content of imports of semi-finished copper products and copper derivative products effective 1 August. Non-copper content of a product remains subject to reciprocal tariffs or other applicable duties.
- Brazil Executive Order: President Trump signed an executive order placing a 40% tariff on Brazilian imports starting on 1 August, citing his authorities under the International Emergency Economic Powers Act (IEEPA) and declaring Brazil’s judicial actions and digital content policies a national emergency. While there is a list of exemptions for certain products (including carve outs for articles of civil aircraft), PMMI products are not present on this list.
- South Korea deal announced: President Trump announced on Truth Social that US and South Korea have struck a trade deal which would implemented a 15% reciprocal tariff rate on all Korean imports into the US. As part of the announcement, President Trump noted that the US would not be subject to tariffs. It is unclear if this means that South Korea agreed to market access provisions for US origin products. No official announcement or details have been published by the White House.
- Potential 25% tariff on India: This morning, President Trump truthed that India will be subject to 25% tariffs on imports to the United States “plus a penalty” starting 1 August. This is a 1% decrease from the reciprocal tariff announced on 2 April. Given the US and India have been negotiating a trade deal, we believe this threat is likely a tactic by the Trump Administration to push India to finalize an agreement before the 1 August deadline.
