On August 1, the 10% worldwide IEEPA reciprocal rates are expected to be replaced by the country-specific rates provided for in April. The 10% will hold for countries not included on the country-specific list. However, a number of trade agreements have been announced, lowering the country-specific rates for select countries. As of today, we have seen announced agreements for some countries at the rates listed below. It is important to note that as of now, we have not seen the executive actions making these changes official, and while the White House has stated that there will be no further extension on the 10% rate, changes do occur in the current tariff environment.
On Sunday, an agreement between the US and the EU was announced, which would include rates of at least 15% on goods from EU member countries; this is a decrease from the threatened 30% tariff announced earlier. Some details of the agreement remain uncertain, but it appears that while the Section 232 tariffs on metals will remain, the tariffs on automobiles will be held at 15%. The carve-out for automobiles is similar to an announced agreement with Japan. The threat of a 50% tariff on goods from Brazil currently stands, though it has been noted that we actually have a trade surplus with Brazil. Negotiations are ongoing with some other countries.
Other than the exceptions noted above, the additional tariffs, such as those imposed on certain steel or aluminum products, automobiles and automobile parts under Section 232, and the IEEPA Fentanyl tariffs on goods from China and some goods from Canada and Mexico are not affected by these agreements. Currently, goods under a Section 232 tariff are excluded from the reciprocal tariff.
View adjusted reciprocal tariff rates by country.
Best Regards,
Sam McClure, LCB
Director of Compliance & Customs Services