U.S. Trade Policy and Tariff Actions
- US and EU indicate no finalized deal expected in near term: On 24 November, US and EU officials noted negotiations are ongoing yet without a date for implementation. EU officials are expected to challenge US expansion of scope of Section 232 tariffs on steel and aluminum. Commerce Secretary Lutnick indicated the EU would have to roll back rules in the digital sector for a reduction in Section 232 tariffs. The US-EU agreement was announced on 28 July followed by a Joint Statement issued 21 August. Until the EU implements the agreement, EU tariffs of 1.7% on US-made packaging and processing machinery will remain in place.
- 100% on semiconductors not yet in play: On 19 November, Reuters reported the United States may not implement a 100% semiconductor tariff that President Trump alluded to in August. While “triple digit tariffs could be imposed at any time,” delay in implementation is expected to avoid possible retaliation from China on U.S. goods.
- 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. |
24 November: Bilateral negotiations ongoing. Reports indicate no agreement will result from 24 November meetings between senior level US-EU officials.
Resources:
- Federal Register Notice
- Fact Sheet |
| China |
Preliminary Agreement |
1 November: US and China announce trade deal. The Federal register notices include information on US modifying China's IEEPA tariff to 20% (10% IEEPA fentanyl + 10% IEEPA reciprocal). Higher reciprocal tariff increased paused until next year.
Resources:
- Federal Register Notice IEEPA fentanyl
- Federal Register Notice IEEPA Reciprocal
- Fact Sheet |
| 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:
- Fact Sheet |
| South Korea |
Preliminary Agreement |
13 November: 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:
- Joint Fact Sheet |
| Switzerland |
Preliminary Agreement |
14 November: US announces trade agreement and releases joint statement and fact sheet that includes additional information on Switzerland's investment commitments in the US, Switzerland's IEEPA reciprocal tariff, and Switzerland's commitment to lower tariffs on U.S. industrial goods to zero.
Resources:
- Joint Statement
- Fact Sheet |
| India |
Negotiations ongoing |
17 November: India Commerce Secretary stated the first phase of US-India Trade deal is close to being finalized. |
| Canada |
Bilateral and USMCA Negotiations ongoing |
No major updates. |
| Mexico |
Negotiations ongoing |
29 October: US paused the implementation of the additional 5% IEEPA tariff (to total 30%) on non-USMCA compliant goods. |
| Taiwan |
Negotiations ongoing |
No major updates. |
| Brazil |
Negotiations ongoing |
20 November: The White House issued an Executive Order removing IEEPA Brazilian domestic policy tariffs for certain agricultural products. No impact to PMMI machinery.
Resources:
- Modifying the scope of tariffs on the government of Brazil. |
Trade Policy Actions by Other Countries
- EU implements safeguard measures on imports of certain ferroalloys (alert sent on 18 November): On 18 November, the EU implemented country specific tariff rate quotas (TRQ) as part of safeguard measures to limit the imports of certain ferroalloys into the European Union. The measures will be in place effective immediately and for a period of three years, expiring on 17 November 2028. Ferroalloys are used to strengthen steel and are used in numerous industries including construction, automotives, and aerospace. While these measures may not directly impact PMMI members, the downstream effects could impact the cost of certain steel sourced in the EU for machinery manufacturing.
- Canada and India seek to restart trade talks: On 23 November, India’s Prime Minister Narendra Modi and Canada’s Prime Minister Mark Carney met at the G20 summit where they agreed to start negotiations on a Comprehensive Economic Partnership Agreement that would increase bilateral trade. Canada and India previously pursued a trade deal; discussions ended in 2023 over geopolitical tensions. While tariffs into Canada on processing and packaging machinery of HS 8422 and 8438 are duty-free, tariffs are 7.5% into India. A new agreement could include potential reduction in tariffs for Canadian-origin food processing and packaging machinery into India depending on scope of a final agreement.
