EU: In response to President Trump’s announcement of increasing tariffs on the EU to 30%, EU’s trade minister, Maroš Šefčovič, said it was “absolutely unacceptable” and that the EU is looking to release a new set of countermeasures in response to this new tariff increase. However, the countermeasures which were scheduled to be implemented on 14 July have been postponed until early August. No formal updated list has been released from the EU, and there is no timeline for when countermeasures will be finalized.
Indonesia: President Trump truthed that the United States has entered into a trade agreement with Indonesia. Details of the agreement are forthcoming, but news reporting indicate that the US will impose a 19% reciprocal tariff on imports from Indonesia and products of US origin imported into Indonesia will be duty free.
Please note that cross-border trade of PMMI relevant products between the US and Indonesia is not significant, but the announced deal is indicative of the uncertainty and lack of clarity that may come from potential trade deals with other manufacturing countries (e.g., Japan, Taiwan, and South Korea).
Indonesia is set to face 19% reciprocal tariffs which is similar to the 20% rate on Vietnam announced 2 July. Truths by President Trump for both agreements also indicated that US products would face no tariffs into the respective markets. Reports indicate that Vietnam and Indonesia do not consider the deals finalized, and are likely “agreements in principle” with technical aspects to be negotiated.
Tariff Letters: Please see the table below regarding tariff letter announcements. Updates from this week are highlighted in yellow.
