Potential increase of tariffs on imports from Canada: On 25 October, President Trump truthed that he would be “increasing the tariff on Canada by 10%...”. News outlets are reporting that Canada is still willing to resume trade talks with the United States despite President Trump’s recent announcement. No details on timing of duties have been published, nor scope of products impacted, i.e., on all imports from Canada or only on non-USMCA-compliant goods.
Four new trade agreements announced: On 26 October, USTR announced new framework agreements (link includes agreement of text, fact sheet, and joint statements for all agreements) with Thailand, Malaysia, Cambodia, and Vietnam.
Impact on US exports: As exports of packaging and food processing machinery currently enter Thailand and Malaysia MFN duty free, there is no expected additional benefits to PMMI members from these trade agreements. However, for exports to Vietnam, we anticipate removal of tariffs ranging from 3 to 5%, and for exports to Cambodia, we anticipate removal of tariffs ranging from 7% to 15%.
Impact on U.S imports: No change in IEEPA tariffs nor on Section 232 tariffs for goods imported from the four countries. For imports from Cambodia, Malaysia and Thailand, the reciprocal rate remains at 19%, and from Vietnam reciprocal rate remains at 20%.
Timing: More details expected “in coming weeks”, and we anticipate implementation in early 2026.
Status of US bilaterial negotiations and discussions: Please see the chart below for the latest on how certain countries are engaging with the United States in effort to reduce reciprocal tariffs and conclude bilateral deals.
Trade Policy Actions by Other Countries
Canada’s Government submits legislation to ratify the UK’s CPTPP accession: On 21 October, Canada introduced legislation to implement the United Kingdom’s accession to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) which currently includes Australia, Brunei, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, and Vietnam. The expanded agreement will be implemented with the UK on 15 December given six of the ten CPTPP members (Japan, Singapore, Chile, New Zealand, Vietnam and Peru) have ratified the agreement. The agreement with the UK will come into effect for other countries, e.g., Canada, as they ratify. This agreement may provide tariff cost benefits for PMMI members that are exporting from the UK to countries within the CPTPP region that have tariffs including Australia, Chile, Mexico, New Zealand and Vietnam.
