U.S. Trade Policy and Tariff Actions
- U.S. Supreme Court alludes to upcoming opinions on the 20th, 24th, and 25th of February: On 13 February, The Supreme Court noted that it may announce opinions on cases on the 20, 24, and 25 of February. The Supreme Court may issue a decision on the legality of President Trump’s IEEPA tariffs on one of these dates.
- US-Taiwan sign agreement on reciprocal trade: On 13 February, the US and Taiwan signed the US-Taiwan Agreement on Reciprocal Trade (ART). Under the U.S. commitments, the United States is reducing the reciprocal tariff applied to imports from Taiwan from 20% to a flat 15% inclusive of MFN (or the MFN rate if MFN is greater than 15%). Under the Taiwan commitments, tariffs for U.S. food processing and packaging machinery of 8438 and 8422 will be eliminated upon entry into force (EIF). Current MFN tariffs for these products range between 2.5% and 4%, and tariff cost savings by gaining duty-free treatment into Taiwan is estimated at $310.7 K.
- EU lawmakers reach deal on U.S. trade pact implementation: On 11 February, European lawmakers reached a common position on legislation to implement the EU-US trade deal with several new safeguards, including a clause that would let the deal sunset in the last year of President Trump’s term. The trade committee is expected to vote on the legislation on 24 February. The legislation then could advance to a vote by full Parliament during a plenary session set for 9 March – 12 March. If the legislation passes, Parliament must then negotiate with the European Commission and Member States to resolve any differences and pass a final piece of legislation. EU concessions in the agreement include potential elimination of tariffs on industrial goods, including U.S. exports of food processing and packaging machinery into the EU (current MFN rate at 1.7%).
- U.S. House of Representatives votes to overturn President Trump’s tariffs on Canada: On 11 February, the House passed a resolution in favor of terminating the 35% IEEPA/trafficking tariff on non-USMCA compliant goods from Canada. The resolution comes just a week before the U.S Supreme Court is expected to issue a ruling on President Trump’s IEEPA tariffs. The Resolution would have to be signed off by President Trump, who would be unlikely to sign any bill that seeks to roll back tariffs. Based on the last 12 months of available data (November 2024 – October 2025), 63% ($472.5 M) of food processing and packaging machinery enter the United States from Canada as non-USMCA compliant and are subject to the additional 35% IEEPA/trafficking tariff.
Updates on Section 232 tariffs on steel and aluminum
- Administration officials dispute reports suggesting that the steel and aluminum tariffs are set to be rolled back: On 13 February, Trade Advisor Peter Navarro and Treasury Secretary Scott Bessent dismissed reports that President Trump plans to scale back Section 232 tariffs on certain steel and aluminum products. Their comments followed a Financial Times report that the Administration plans to review the list of goods covered by the 50% Section 232 tariffs, exempt some items, halt further list expansions, and instead pursue more targeted national security investigations into specific products. Currently, the Section 232 tariffs do not apply to food processing and packaging machinery of 8438 and 8422, but they do cover inputs used for machinery, such as rods, screws, bolts, etc.
- New Section 232 suit tests CBP’s discretion on valuing steel, aluminum derivatives: A lawsuit filed with the U.S. Court of International Trade challenging how U.S. Customs and Border Protection values and applies Section 232 tariffs on imported steel and aluminum derivative products could lead to major changes in how these duties are handled. In the lawsuit, the Plaintiff argued that CBP has been applying the 50% Section 232 tariff to the entire value of the product instead of the value of non-US origin steel or aluminum content. It is reported that Attorneys are saying that that the case may also set a wider precedent regarding how much discretion courts allow executive agencies in interpreting the Trump Administration’s tariff policies. It remains uncertain whether a future CIT decision will establish clear guidelines on when and how CBP may make such adjustments.
- Industry groups ask BIS to ease “unprecedented” Section 232 burdens: On 10 February, 28 trade associations representing a wide range of sectors asked the Bureau of Industry and Security (BIS) to overhaul the way it crafts, enacts, and implements new tariffs under Section 232 of the Trade Expansion Act of 1962 as it “is creating significant challenges that undermine the competitiveness of U.S. businesses and exacerbate affordability concerns across the U.S. economy”. The trade associations also added that any changes should include more opportunities for public comment and industry consultation on investigations, tariff actions, and product inclusion or exclusion requests; and allowing more phase-in time for new or modified duties and clarifying how these tariffs apply to products or categories. Currently, Section 232 tariffs do not apply to food processing and packaging machinery of 8438 and 8422, but they do cover inputs used for machinery, such as rods, screws, bolts, etc.
- Status of U.S. 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.
|
11 February 2026: EU trade committee expected to vote on legislation to implement the agreement on 24 February. Please see above for more information.
Resources:
|
| China |
Preliminary Agreement |
1 November 2025: 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 2025: Fact Sheet includes additional information regarding Japan’s investment commitments in the United States including energy, AI infrastructure, and electronics and supply chain.
Resources:
|
| South Korea |
Preliminary Agreement |
9 February 2026: South Korea’s Parliament voted to fast-track US–Korea trade agreement legislation after President Trump threatened to raise tariffs from 15% to 25%.
Fact sheet includes additional information on South Korea’s investment commitments in the US, South Korea’s 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 |
14 January 2026: Switzerland’s Federal Council adopted final negotiating mandate for talks on the trade agreement with the United States.
Retroactive to 14 November 2025: IEEPA duties on Switzerland will be no higher than 15% (imports subject to 15% or MFN rate, whichever is higher).
The Federal Register Notice states that refunds of duties collected will be processed pursuant to applicable law and CBP procedures. Importers may file post-summary corrections for duties originally assessed at 39%.
Resources:
|
| India |
Preliminary Agreement |
6 February 2026: United States–India Joint Statement released alongside Executive Order removing Russian oil tariffs.
Resources:
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| Canada |
Bilateral and USMCA negotiations ongoing |
27 January 2026: Preparations ongoing for USMCA mandatory 6-year review in July 2026. Bilateral trade negotiations are ongoing.
|
| Mexico |
Negotiations ongoing |
28 January 2026: Mexico and US agree to start formal discussions on USMCA.
|
| Taiwan |
Agreement |
13 February 2026: US and Taiwan signed an agreement on reciprocal trade. Please see above for more information.
Resources:
|
| Brazil |
Negotiations ongoing |
20 November 2025: The White House issued an executive order removing IEEPA Brazilian domestic policy tariffs for certain agricultural products. No impact on PMMI machinery.
Resources:
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Trade Policy Actions by Other Countries
- China and Mexico held talks to discuss tariffs: On 12 February, it was reported that China’s Chief Trade Negotiator Li Chenggang met with Mexico’s Deputy Economy Minister Vidal Llerenas in China to discuss the higher tariffs Mexico implemented on imports from China. Last month, Mexico’s new tariff measures took effect which imposed duties of 5% to 50% on 1,400 products, including certain steel products of Chapter 72, on imports into Mexico from countries without a trade agreement with Mexico, such as China, South Korea, Thailand, and Indonesia. Analysts saw the implementation of these tariffs as a move to please President Trump who implemented tariffs on Chinese goods. The China-Mexico talks come as the US, Mexico, and Canada prepare for the USMCA review in July.
