Cross Border Trade Updates

U.S. Trade Policy and Tariff Actions

• US and India agree to a trade deal: On 2 February 2026, President Trump announced on truth social that the United States has agreed on a trade deal with India.
  
  • TARIFFS INTO THE US: India’s IEEPA reciprocal tariff lowered from 25% to 18%. The Truth Social announcement did not mention India’s additional IEEPA Russian oil tariff of 25% and it is unclear if it will be eliminated. President Trump did note that India has agreed to stop purchasing Russian oil.  Based on the latest full year of data (November 2024 – October 2025), the US imported $56 M in food processing and packaging machinery of 8422 and 8438 from India.
  • TARIFFS INTO INDIA: India has committed to reducing tariffs to zero and non-tariff barriers against U.S. origin goods. India’s Government has not confirmed if it has committed to eliminating tariffs on all U.S. origin products or if there will be limitations on products subject to the preferential commitments. Based on the latest full year of data, the US exported $42 M in food processing and packaging machinery of 8422 and 8438 to India, where current tariffs are 7.5%.‍
  • No detailed information has been published by the White House or USTR. We will continue to monitor and update including with tariff cost impact estimate once further information is published. Please let us know if you have any questions.
• President Trump plans to increase tariffs on South Korea: On 26 January, President Trump announced on Truth Social that he is planning on increasing South Korea’s IEEPA reciprocal tariffs (and some Section 232 tariffs) from 15% to 25% arguing that South Korea is not “living up” to its trade agreement with the United States. In the trade deal announced in November 2025, South Korea was not granted preferential treatment for Section 232 steel or aluminum tariffs. As there has been no official publication, it is unclear if Section 232 steel and aluminum tariffs on South Korea will be impacted by a tariff increase. Based on the latest full year of data (November 2024 – October 2025), the US imported $93 M in food processing and packaging machinery of 8422 and 8438 from South Korea.‍
• Taiwan’s President warned legislature that US could hike tariffs if trade deal is not approved: On 28 January, it was reported that Taiwan’s President Lai Ching-te warned his legislature that failure to approve the new trade deal with the United States could result in increased tariffs of 25% or higher. The trade deal, which was announced on 15 January, lowered Taiwan’s reciprocal tariff from 20% to no more than 15%. President Lai Ching-te’s comments come after President Trump truthed that he is planning on increasing tariffs on South Korea. Based on the latest full year of data (November 2024 – October 2025), the US imported $111 M in food processing and packaging machinery of 8422 and 8438 from Taiwan. ‍
• Mexico to begin ‘formal’ talks on USMCA review: On 28 January, it was reported that Mexico and the United States have agreed to begin discussions on “possible structural and strategic reforms” ahead of the upcoming USMCA review in July. Topics for discussion relevant to PMMI members include stronger rules of origin for key industrial goods and external trade policy alignment to defend workers and producers in the United States and Mexico and to combat the relentless dumping of manufactured goods in the region.‍
• Lawsuit filed at CIT challenging how U.S. CBP has been valuing and applying Section 232 tariffs: On 27 January, a lawsuit was filed at the U.S. International Court of International Trade (CIT) challenging how U.S. Customs and Border Protection (CBP) has been valuing and applying Section 232 tariffs on imported steel and aluminum derivative products. Current guidance from CBP’s Cargo System Messaging Service (CSMS) states that the 50% tariff on steel and aluminum is to be applied to the value of non-US origin steel or aluminum content of the product, not the entire value of the product. The plaintiff is arguing in the lawsuit that CBP has begun applying the 50% tariff to the entire value of imported products, including factory overhead and other non-steel costs. PMMI members importing inputs for food processing and packaging machinery of 8422 and 8438 should work with their brokers to ensure that any Section 232 tariffs are applied correctly based on non-US origin content of the steel/aluminum.    ‍
• 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.