Tax insight

Trump administration announces additional country tariff rates, trade agreement ahead of August 1 deadline

Insight
5 minute read
July 18, 2025

What happened?

Over the past week, President Trump has continued to pursue tariff enforcement measures as part of the administration’s broader trade policy agenda. President Trump has escalated the administration’s tariff strategy with new and proposed duties on goods from the European Union (EU), Mexico, Canada, and Russia, while simultaneously pursuing trade negotiations that led to preliminary agreements with Vietnam and Indonesia, and a potential agreement with India nearing completion. These steps are aimed at reducing bilateral tariffs and expanding US exports. Letters to additional countries are expected to be released soon, notifying them of assigned tariff rates.

President Trump this week also addressed sector tariffs, again stating that he would impose tariffs on pharmaceutical imports, as well as on semiconductors.

Why is it relevant?

These actions reflect intensifying trade negotiations, with the August 1 effective date serving as a critical deadline for countries to secure revised trade terms and avoid new duty exposure. Businesses continue to grapple with supply chain disruption and unexpected costs, coupled with a growing desire for more tariff certainty. The timeline for the conclusion of negotiations remains unclear.

Actions to consider

For businesses, these developments signal the need to reassess cross-border operations, evaluate tariff impacts on imports and exports, and continue to proactively engage in mitigation planning to manage potential cost increases and compliance risks. Implementing dynamic modeling and planning strategies is crucial. Companies should closely monitor for future developments in the lead up to August 1 — including potential retaliatory actions taken by countries in response to the Trump administration’s tariffs.

For more details, read the full Tax Insight linked below.