U.S. Trade Policy and Tariff Actions
- Switzerland IEEPA reciprocal rate retroactively set to 15%: On 18 December, USTR published a Federal Register Notice revising Switzerland’s IEEPA reciprocal rate to either a 15% flat rate for Switzerland goods into the United States (if the MFN is less than 15%), or the MFN rate if the rate is greater than or equal to 15%. The effective date is retroactive to 14 November 2025. CBP released the guidance under CSMS # 67133044, which mirrors similar language to that of the US-EU agreement. Given Switzerland is a top 5 source market for PMMI members, either post-summary corrections or protests should be used in order to apply the retroactive rate dependent on the liquidation status for entries.
- USMCA review and negotiations: On 17 December, The Wall Street Journal reported U.S. Trade Representative Jameison Greer remains supportive of USMCA, although previous statements indicated the Trump administration could withdraw from the deal next year. Meanwhile, on 18 December, Canadian Primes Minister Mark Carney indicated sector deals between the US and Canada, including for steel and aluminum, are unlikely to be struck prior to the 2026 USMCA review.
- Congressional members reintroduce a revised Carbon Border Adjustment Mechanism (CBAM) proposal: On 17 December, Sen. Whitehouse (D-RI) and Rep. DelBene (D-WA) reintroduced a bill proposing a fee based on greenhouse emissions in energy intensive sectors, such as steel and aluminum production. The proposed bill would apply a fee on domestic manufacturing and imports, as well authorize the President to negotiate carbon border agreements with other countries to lower fees. The proposed fee (known as CBAM) differs from a legislative initiative proposed in April by Senators Cassidy (R-LA) and Graham (R-SC) which would levy a fee only on imports based on the difference between their emissions and emissions from U.S. made goods. While neither proposal specifically targets the machinery manufacturer industry, emission-based fees on the manufacturing of steel and aluminum could increase sourcing cost for downstream users such as manufacturers for food processing and packaging machinery.
- 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 reduced tariffs on US goods not yet implemented.
|
22 December: Negotiations ongoing.
Resources:
|
| China |
Preliminary Agreement |
1 November: US and China announce trade deal. Federal Register notices include information on US 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 regarding Japan’s investment commitments in the United States including Energy, AI infrastructure, and Electronics and Supply Chain.
Resources:
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| 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 additional information on South Korea’s investment commitments in the US, the IEEPA reciprocal tariff rate, and reductions on Section 232 tariffs for auto and auto parts, timber and lumber, pharma, and chips.
Resources:
|
| Switzerland |
Preliminary Agreement |
5 December: Switzerland adopted negotiating directives on Switzerland–US agreement. US food processing and packaging machinery already MFN duty-free; additional market access benefits expected for US exports into Switzerland.
Resources:
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| India |
Negotiations ongoing |
22 December: Trade negotiations ongoing. No major updates.
|
| Canada |
Bilateral and USMCA negotiations ongoing |
8 December: Negotiations paused, no significant developments.
|
| Mexico |
Negotiations ongoing |
22 December: Trade negotiations ongoing. No major updates.
|
| Taiwan |
Negotiations ongoing |
1 December: Trade negotiations ongoing. Taiwan is aiming for a 5% reduction in reciprocal tariffs (15% from 20%).
|
| Brazil |
Negotiations ongoing |
20 November: Executive Order removed IEEPA Brazilian domestic policy tariffs for certain agricultural products. No impact on PMMI machinery.
Resources:
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