17 Jul Trump’s Tariff Shifts Continue
Following the raft of tariffs announced in April, the global trade landscape continues to shift with a plethora of tariffs due to be finalised and announced on the 1st of August 2025.
With negotiations continuing between the USA and countries across the globe still underway, below is an overview of the current state of tariffs:
China
Whilst a baseline tariff of 10% has been applied to all Chinese goods, a range of tariffs of up to 30% have been applied on a wide range of goods. This rate is a combination of 20% tariffs related to fentanyl trafficking and a 10% baseline reciprocal tariff. Conversely, China will apply a 10% tariff. Negotiations continue between the two nations, which may see the terms and conditions around these tariffs alter upon finalisation.
Canada
The USA has announced a 35% tariff on imports (effective 1st August 2025). Currently it is unclear how these tariffs will correspond to the existing 25% tariff and 10% tariff on energy imports, excluding those that are part of the United States Mexico-Canada Agreement (USMCA).
Conversely, Canada is preparing additional levies in response to steel, aluminium and general tariffs while also matching the US tariff on car imports not compliant with the USMCA. However, negotiations between both nations continue which may alter these terms upon finalisation.
Mexico
The USA has announced a 30% tariff on imports (effective 1st August 2025). Much like Canada, it is unclear how these will relate to the existing 25% tariffs on goods from Mexico, except for those that fall under the USMCA category. Conversely, Mexico has announced their intention to enact retaliatory actions, however negotiations are still underway which may alter these terms upon finalisation.
European Union
A 30% tariff, effective 1st August, has been announced by the USA. Again, as of now, there is no clarity as to how this will interact with the initial 10% baseline tariff. Conversely, the EU has delayed counter measures that target US imports worth $107 million while negotiations continue.
United Kingdom
The USA and UK have finalised a trade deal focused on tariffs and market access. The pact establishes a tariff-rate quota for car imports, reduced duties for autoparts and exemptions for civil aircraft engines, among other provisions.
Australia
The US currently has in place its “baseline” 10 per cent tariff on imports from Australia. However, Trump has flagged a 200% tariff on the Australian pharmaceutical industry, which is valued at $2.2billion (as of 2024).
Steel and aluminium
Trump introduced a 25% import tax on all steel and aluminium entering the USA, including products made from these metals. However, on 4th of June, this rate was doubled to 50% (with the exclusion of the UK). Similar intent has been announced with regards to pharmaceuticals, semiconductors and other goods.
Automotives
Trump announced a 25% levy on all foreign-made cars, effective as of April. This was extended to include imported engines and other car parts as of May; however, these rules have been modified to reduce the negative impact on US automotive companies.
Copper
The USA announced a 50% tariff on all copper imports, effective 1st of August 2025.
Other Nations
Some other tariffs include:
- Japan, Malaysia and South Korea: 25%
- Brazil: 50%
- Thailand: 36%
- South Africa: 30%
- With most other nations are attracting tariffs of 20% to 50%
The ongoing tariff negotiations have created a high degree of ongoing economic uncertainty across the globe as discussion continue between Trump and his international counterparts, with a further deadline of 1st of August for finalisation of trade agreements.
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