Cross Border Trade Updates
August 18, 2025
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- US Section 232 Steel and Aluminum Updates: On Friday, 15 August, the U.S. Department of Commerce’s Bureau of Industry and Security posted a draft Federal Register notice expanding the scope of the steel and aluminum derivatives list effective 18 August. The additional tariff of 50% still holds and only applies to the non-US origin of steel and aluminum content. Processing and packaging machinery and equipment of HS codes 8422 and 8438 are not included in the new list. We understand there are a number of non-industrial goods such as thumbtacks and pins but do see some industrial materials and goods tariff codes as well. As such, we anticipate the expanded scope may impact sourcing of inputs for some PMMI members.
- Status of US bilateral negotiations and discussions: Last Tuesday, 12 August, U.S. Treasury Secretary Scott Bessent, suggested new trade agreements with countries including India and Switzerland could be reached by October. Two weeks after the IEEPA reciprocal tariffs came into effect, countries are continuing to negotiate to reduce or avoid reciprocal tariffs. See list of country-specific reciprocal tariffs in the chart below for the top 10 source markets for machinery into the United States.
- India: Last Wednesday, 13 August, Reuters reported that India’s Prime Minister Narendra Modi is likely to meet President Trump next month to attend the UN General Assembly meeting.
- EU: On Tuesday, 12 August, Reuters reported that the EU could not say when a joint statement on tariffs would be published or when the White House would issue an Executive Order.
- China: On 12 August, Reuters reported that Bessent said U.S. trade officials will meet officials in China within the next two or three months to discuss the future of the economic relationship. A few days later, President Trump said he did not immediately need to consider retaliatory tariffs on countries such as China for buying Russian oil but might have to "in two or three weeks."
- Taiwan: On Monday, 11 August, Taiwan’s Vice Premier Li-Chiun said Taiwan's cabinet is still negotiating for more favorable tariff rates after President Trump imposed a 20% reciprocal tariff on the country earlier this month.
- South Korea: On Tuesday, 12 August, The Washington Post reported South Korean President Lee Jae Myung will meet with President Trump in Washington to continue trade talks and implementation of the trade deal announced 30 July.
- US IEEPA Tariffs: No change in tariffs as reported last week.
- China action at the WTO against Canadian Steel: Last Friday, 15 August, Bloomberg reported that China filed a complaint at the WTO on Canada’s restrictions of imported steel. China’s Minister of Commerce called the measures “typical trade protectionism.”
- China and Brazil Deepen Cooperation Given Trade Tensions with the United States: Last Tuesday, 12 August, it was reported China’s President Xi Jinping and Brazil’s President Luiz Inácio Lula da Silva held a 1-hour high-level meeting aimed at reinforcing ties and addressing joint concerns on trade relations with the United States. As China and Brazil are impacted by higher reciprocal tariffs, the two countries are seeking ways to mitigate those effects.
