Cross Border Trade Updates
June 17, 2025
Click image to view gallery
- U.S. Section 232 Tariffs on Steel from Mexico
- On Tuesday, 10 June, the United States and Mexico were reported to be negotiating a deal that would reduce or eliminate President Trump’s 50% tariff on steel imports up to a certain value. The media is reporting that the outcome would include a quota arrangement, under which a specified volume of steel and steel products from Mexico could enter duty free or at a reduced rate and any imports above that level would be charged the full 50% tariff. Any quota deal is not expected to impact finished machinery imported under 8422 or 8438 from Mexico into the United States. It is not yet clear how PMMI members that source steel products, parts and components from Mexico may benefit.
- Last Monday, 9 June, the Federal Register Notice was published for the Executive Order (EO) on increasing Section 232 tariffs on steel and aluminum from 25% to 50% effective 4 June.
- China and the United States Come to a Trade Agreement Framework
- On Wednesday, 11 June, after two days of talks, China and the United States agreed on a framework that is awaiting approval of both Presidents Trump and Xi. Full scope has not yet been published. The framework revives the previous agreement struck in Switzerland on 12 May which reduced tariffs based on China’s accelerating approvals of export licenses for critical minerals. China agreed to supply rare earths and magnets; the U.S. will permit Chinese students to study in America.
- The framework does not change U.S. tariff rates on Chinese goods. President Trump truthed that the United States is getting a total of 55% tariffs and China is getting 10%. The 55% encompasses the 20% IEEPA fentanyl + 10% IEEPA universal + up to 25% Section 301 tariffs.
- Domestic Legal Actions Against President Trump’s Tariffs
- On Tuesday, 10 June, the U.S. Court of Appeals for the Federal Circuit in Washington agreed to allow President Trump to maintain his tariffs on China, Mexico, Canada, and other U.S. trading partners while the appeal proceeds. The appeals court has yet to rule on whether the tariffs are permissible under IEEPA. Oral arguments are scheduled on 31 July.
- Actions at the World Trade Organization (WTO)
- On Wednesday, 11 June, at the WTO, the United States stated that the European Union (EU) improperly proposed to retaliate because new U.S. duties are not safeguard measures, and as such the EU’s proposal does not apply.
- The United States shot down India’s request for consultations on the Trump Administration’s tariffs on autos and auto parts which India argued are “safeguard” measures under WTO rules.
- U.S. Tariff Negotiations
- On Wednesday, 11 June, Treasury Secretary Scott Bessent said that the United States might extend a 90-day pause on reciprocal tariffs for 18 trading partners that the administration views as negotiating in good faith. That same day, Bessent said to the House Ways and Means Committee that the United States is prioritizing pushing back against foreign digital service taxes as part of trade negotiations.
- Please see below for the latest as reported by the press on trade negotiations between the United States and countries seeking to reduce or avoid higher reciprocal tariffs on their goods.
- EU: On 16 June, it was reported that Brussels negotiators are willing to accept U.S. tariffs of 10% on all of the EU’s exports into the United States with hopes that the United States will avert any higher duties on cars, drugs, and electronics. On 11 June, Commerce Secretary Howard Lutnick said the European Union is likely to be among the last deals that the US completes, as the administration rushes to secure tariff agreements with other trading partners.
- Canada: On 12 June, Canadian Prime Minister Mark Carney said a bilateral meeting with President would occur on the sidelines of the upcoming G7 summit and could determine how close the two sides are on a bilateral deal over tariffs. It was also reported that Canada and the United States have exchanged a document outlining potential trade deal terms.
- Thailand: On 16 June, Thailand's commerce minister said his country would have trade talks with the United States and expressed confidence both sides could agree on good terms on U.S. tariffs, possibly as low as 10%.
- UK: On 13 June, UK Prime Minister Keir Starmer said that there are no “hiccups or obstacles” remaining in the way of finalizing a trade deal with the United Staes and indicated that the agreement would likely come soon.
- Indonesia: On 13 June, Indonesia decided that they will no longer send a delegation to the United States for tariff negotiations after Indonesian President Prabowo Subianto and President Donald Trump held a 15-minute phone call to talk about strengthening ties.
- Vietnam: On 13 June, it was reported that the United States and Vietnam are closing in on a framework trade agreement. Vietnam is seeking to secure tariffs in the range of 20%-25%.
- India: On 10 June, India and the United States were reported to have made progress in their latest round of talks on a bilateral trade deal. Areas of focus were market access for industrial and some agricultural goods, tariff cuts, and non-tariff barriers.
