Cross Border Trade Updates

U.S. Trade Policy and Tariff Actions

• US announces trade deal with Switzerland: On 14 November, the White House released a Joint Statement and Fact Sheet outlining details of the US-Switzerland-Liechtenstein Agreement. The agreement's core development is that the US is offering imports from Switzerland similar tariff concessions offered to the European Union. Under the agreement, imported goods will be subject to a reciprocal flat rate of 15% (unless MFN is higher) which is a significant improvement from the 39% reciprocal tariff currently in place. The US imported $378.5 M in packaging and processing machinery from Switzerland last year (3rd largest supply market).

• US releases fact sheet on South Korea’s trade agreement: On 13 November, the White House issued a Fact Sheet on President Trump’s recent meeting with South Korea’s President Lee Jae Myung on 29 October. The Fact Sheet states that the US will apply a reciprocal flat rate of 15% on imports from South Korea (unless MFN or the U.S.-Korea Free Trade Agreement rate is higher), and there are no anticipated tariff cost savings from this announcement.‍
• US-EU Agreement talks this week: US and EU officials, including U.S. Trade Representative Jamieson Greer and U.S. Commerce Secretary Lutnick, are expected to meet this week and next to continue negotiations on the EU-US Framework Agreement. The EU is expected to share its implementation action plan, which includes proposed action on tariffs and market access; economic security issues; regulatory cooperation; strategic investments, and cooperation in steel and aluminum. To date, the US implemented a 15% flat rate tariff on imports from the EU as part of the joint statement of the agreement in August 2025, while the EU presented legislation to lower tariffs on US industrial goods and select non-sensitive agricultural exports. This legislation is pending approval in Parliament and is anticipated no earlier than February. Both the US and EU have expressed concerns and negotiating positions leading into the meetings:‍
  
  • United States:  On 16 November, U.S. Trade Representative Jamieson Greer highlighted concerns with the pace of EU implementation of the EU-US agreement, particularly in tariff reductions.  The US is also pressuring the EU over its regulations regarding corporate supply chain and deforestation, which were outlined in a set of proposals sent in October.‍
  • European Union: On 17 November, Bloomberg reported that European Union officials are concerned that the United States may expand the list of products subject to Section 232 steel and aluminum tariffs to include additional derivative products. EU-origin steel and aluminum products are still subject to the Section 232 tariff of 50%. Any further expansion of Section 232 tariffs could dilute the impact of the EU-US Framework Agreement.  
• US announces agreements with four Western hemisphere countries: On 13 November, the White House announced four new framework agreements with Ecuador, Argentina, Guatemala, and El Salvador. While none are top export market destinations for PMMI members, the US exported a combined $81 million in packaging and processing machinery to these countries last year. The US agreed to “positively consider the effect… on national security” under the agreements with Argentina and El Salvador.   This could mean that positive steps taken by these two countries could lead to some easing of tariffs by the United States on Section 232 actions (including steel, aluminum, and copper).‍
• US rejects India’s claim at the WTO that Section 232 duties on copper are safeguard measures: In September, India requested consultations at the World Trade Organization (WTO) over US implementation of 50% tariff on imports of copper under Section 232. India’s argues the copper duties are a safeguard measure. The US responded stating that duties on copper imports were imposed as a national security measure, in line with similar arguments at the WTO with respect to Section 232 duties on steel and aluminum. If the WTO determines that Section 232 duties on copper are safeguard measures, then India may be authorized to retaliate by taking equivalent action (i.e., raise tariffs on imports from the United States).
• 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.  

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Trade Policy Actions by Other Countries

• EU to reject India’s demand to be exempt from the EU carbon border tax: On 16 November, the Financial Times reported that the European Union (EU) will reject India’s demand to be exempt from the EU’s carbon border tax under the Carbon Border Adjustment Mechanism (CBAM). The CBAM, which fully enters into force on 1 January 2026, applies a carbon import duty on how much carbon is emitted during the manufacturing of imports such as steel and aluminum. The purpose of this tax incentivizes manufacturers to cut greenhouse gas emissions. India and the EU are hoping to reach a trade agreement by the end of the year. India considers CBAM to be a significant barrier to trade. India is one of the biggest trading partners for the EU and a top import and export market for processing and packaging machinery.