New IEEPA Reciprocal Tariffs in Place: See list of country-specific reciprocal tariffs in the chart below for the top 10 source markets for machinery into the United States. One week after the IEEPA reciprocal tariffs came into effect, countries are continuing to negotiate to reduce or avoid reciprocal tariffs:
China: On 11 August, CNBC reported that President Trump signed an Executive Order that will further delay the implementation of 34% reciprocal tariffs on China for another 90 days. China’s reciprocal tariffs were supposed to go into effect at midnight, 12 August. The pause will end 10 November.
Japan: On 8 August, the Washington Post reported that Japan and the United States are in disagreement over the interpretation of the newly announced trade deal and lawmakers are pushing for clarity. As no official document has been published, fact sheets from the United States and Japan have conflicting information. Both countries said that the US would impose a 15% tariff on goods from Japan, however, Japan is saying that any item subject to tariffs higher than 15% would be exempt from the new taxes, whereas the US is saying that the new 15% tariff is stackable.
Switzerland: On 7 August, Reuters reported that Switzerland is continuing trade talks with the United States after President Trump placed a 39% import levy on the country.
India: On 7 August, President Trump said that he has no plans to open fresh trade negotiations with India after hiking tariffs on India’s imports into the US to 50% in retaliation for the country’s continued purchases of Russian oil.
EU: On 6 August, President Trump threatened the EU with 35% blanket tariffs if the EU does not invest $600 billion in the United States by the end of President Trump’s second term as agreed upon in the handshake deal announced 27 July. The day before, the EU said that it would suspend retaliatory tariffs with the United States even as specifics of the newly announced trade deal have not been signed off yet by President Trump.
Brazil: On 6 August, Brazil’s President Luiz Inacio Lula de Silva said that he will not retaliate against the U.S reciprocal tariffs but instead will seek out other members of the BRICS (Brazil, Russia, India, China, and South Africa) bloc to gauge their interest in a joint response to the tariffs.
U.S. Copper Tariffs Apply to $15 billion of Goods: On Tuesday, 5 August, the Federal Register published a list of copper products subject to U.S. Section 232 tariffs of 50%. The copper tariff is expected to impact imports valued at more than $15 billion. The list includes semi-processed products such as wires, tubes, and rods, and cabling. The tariff will be levied according to the value of copper content. Non-copper content of a product remains subject to reciprocal tariffs and other duties. PMMI members that source copper for inputs for machinery may be impacted.
Canada and Mexico to Cooperate as ‘Free Traders’: On Tuesday, 5 August, it was reported that Canada is seeking closer collaboration with Mexico in multiple sectors. Canada’s Foreign Affairs Minister Anita Anand said that the two countries agreed “to build a work plan” covering “resilient supply chains, port-to-port lines of trade, artificial intelligence” among other things. As the 6-year review of USMCA is scheduled for next year, both countries are taking proactive steps to further engage.
Actions at the World Trade Organization (WTO): On Wednesday, 6 August, Brazil filed a request for consultations at the WTO over tariffs imposed by President Trump, alleging the President’s plan to impose 50% duties on the country runs afoul of the most-favored nation principle and tariff ceilings agreed by WTO members.
IEEPA country-specific tariffs for top 10 source markets for processing and packaging machinery:
