U.S. Trade Policy and Tariff Actions
- Department of Commerce Bureau of Industry and Security to delay new Section 232 inclusions decision until 2026: Inside Trade reported that the list of steel and derivative goods subject to Section 232 tariffs is not expected to be amended to include additional goods in 2025. The list was originally intended to be updated with new inclusion decisions by 28 November 2025, per the original Federal Register Notice published on 2 May 2025.
- Trump Administration officials confirm IEEPA tariff replacement plan: On 5 December, White House National Economic Council Director, Kevin Hassett confirmed the Administration’s plan to recreate a similar tariff structure using different legal authorities if IEEPA tariffs are ruled illegal. These statements echo Treasury Secretary Bessent’s claim that similar tariffs can be imposed using Section 301, 232, and 122. For an overview of potential legal authorities, please see the most recent December 2025 FAQs.
- IEEPA tariffs on South Korea reduced from 25% to 15% flat rate: On 4 December, following South Korea’s legislative initiative to implement US investment commitments under the recently announced bilateral agreement, USTR published a Federal Register Notice on 4 December implementing the IEEPA 15% flat rate for South Korean goods and the related CSMS message published 3 December. The flat rate is effective 1 November 2025.
- Switzerland adopted negotiating mandates for the US-Switzerland proposed reciprocal trade agreement: On 5 December, the government of Switzerland adopted its negotiating mandate for its bilateral agreement with the United States. For U.S. exports, of food processing and packaging machinery of 8422 and 8438, we anticipate no additional benefit as Switzerland’s tariffs are already duty-free. For U.S. imports, a Federal Register Notice and related guidance from U.S. Customs have not yet been published to implement the reduction in the IEEPA tariff from 39% to 15%. Once published, PMMI will share with members.
- 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.
| Market |
Status Update |
Summary |
| EU |
Agreement Framework released through Executive Order.
EU tariffs on US goods not yet implemented.
|
28 November: EU adopted negotiating directives on EU-US agreement.
Resources:
|
| China |
Preliminary Agreement |
1 November: US and China announce trade deal. Notices include information on modifying China’s IEEPA tariff to 20% (10% IEEPA fentanyl + 10% IEEPA reciprocal). Higher reciprocal tariff increases paused until next year.
Resources:
|
| Japan |
Preliminary Agreement |
28 October: Fact Sheet includes additional information on Japan’s investment commitments in Energy, AI infrastructure, Electronics, and Supply Chain.
Resources:
|
| South Korea |
Preliminary Agreement |
1 December: South Korea introduced legislation in parliament to implement the US–South Korea trade agreement. Retroactive to 1 November 2025, IEEPA duties on South Korea will be 15%.
Fact sheet includes updated information on South Korea’s investment commitments in the US, the IEEPA reciprocal tariff rate, and reductions on Section 232 tariffs for auto/auto parts, timber/lumber, pharma, and chips.
Resources:
|
| Switzerland |
Preliminary Agreement |
5 December: Switzerland adopted negotiating directives on Switzerland–US agreement.
Resources:
|
| India |
Negotiations ongoing |
28 November: USTR negotiators in India 10–11 December for ongoing trade negotiations.
|
| Canada |
Bilateral and USMCA negotiations ongoing |
8 December: Negotiations paused, no significant developments.
|
| Mexico |
Negotiations ongoing |
29 October: US paused implementation of the additional 5% IEEPA tariff (to total 30%) on non-USMCA compliant goods.
|
| Taiwan |
Negotiations ongoing |
1 December: Trade negotiations ongoing. Taiwan is seeking a 5% reduction in reciprocal tariffs (down to 15% from 20%).
|
| Brazil |
Negotiations ongoing |
20 November: Executive Order removed IEEPA Brazilian domestic policy tariffs on certain agricultural products. No impact on PMMI machinery.
Resources:
|
Trade Policy Actions by Other Countries
- Russia and India agree to increase trade: On 5 December, in a joint press conference, Russian President Putin and Indian Prime Minister Modi agreed on an economic cooperation program through 2030. Prime Minister Modi noted the program would “make our trade and investment more diversified, balanced, and sustainable."
- EU Member States continue bilateral negotiations with China: As the European Commission continues to place tougher trade policies against China, EU Member States have looked to improve relations. On 4 December, China’s President Xi and France’s President Macron signed 12 agreements ranging from diplomacy to trade. President Xi said in a joint appearance that France and China would work towards greater economic cooperation in areas of aerospace, green industries, and AI. Separately, Germany’s Foreign Minister Wadephul is scheduled to visit China on 8 and 9 December to discuss trade.
