On July 7, U.S. President Donald Trump announced plans to move forward with issuing reciprocal tariff letters to over 20 countries with which the U.S. had not reached a tariff agreement. These tariff letters indicate the new reciprocal tariff rate to be applied, with rates ranging from 20%-50%.
President Trump has threatened additional letters to come in the following days. He also extended the deadline for all reciprocal tariffs to August 1 to allow for more time to finish any outstanding negotiations. According to the U.S. administration, August 1 will be the final extension date, and all agreements must be finalized before then.
Despite President Trump’s insistence that the reciprocal tariff letters are final, many countries continue to negotiate with the hope of bringing their tariff rates down before August 1. These countries include Japan, South Korea, Thailand, and Indonesia. Negotiators from several nations have questioned whether the current tariff rates are final, or whether they could be a negotiating tactic to push for more concessions before August 1.
| Country | Tariff rate | Value of exports to U.S. in 2024 | Key exports to U.S. |
| Japan | 25% | $148.4 billion | Cars, auto parts, pharmaceuticals |
| South Korea | 25% | $131.6 billion | Cars, auto parts, machinery |
| Thailand | 36% | $63.3 billion | Electronic parts |
| Malaysia | 25% | $52.5 billion | Electronic parts |
| Brazil | 50% | $42.3 billion | Oil & gas, iron, coffee |
| Indonesia | 32% | $28.1 billion | Palm oil, clothing and apparel, electronic parts |
| South Africa | 30% | $14.7 billion | Industrial and precious metals, cars |
| Philippines | 20% | $14.2 billion | Machinery, electronic parts |
| Cambodia | 36% | $12.6 billion | Handbags, electronic parts |
| Bangladesh | 35% | $8.4 billion | Clothing and apparel |
| Iraq | 30% | $7.5 billion | Crude oil, mineral oil |
Table 1: Current status of global tariff negotiations with the U.S. (source: Everstream Analytics).
Trump administration wraps up tariff negotiations ahead of August 1 deadline
Among the trading partners that have not received similar tariff letters are the E.U. and India. E.U. negotiators have remained firm that they expect a deal with the U.S. to be announced soon, and that both sides have made significant progress. Although President Trump threatened to send the E.U. a similar tariff letter on July 8, E.U. negotiators state they have since received U.S. confirmation that this will not be the case. Some reports indicate that E.U. negotiators have conceded a 10% baseline tariff on all U.S. imports of E.U. goods but hope to make further progress on gaining exceptions to sector-specific tariffs, including those affecting finished automobiles. The E.U. is also reportedly pushing for carve-outs for Airbus airplanes and some metals.
Additionally, President Trump indicated that the U.S. and India are close to a trade deal that could be announced imminently. The terms of the potential deal remain unknown but reports in late-June suggested that sticking points in negotiations have included tariffs on automotive components, steel, and farm goods.
The U.S. further announced its second successful trade agreement with Vietnam, which has been proposed but has yet to be finalized. Under the deal, U.S. goods would enter Vietnam duty-free, while Vietnamese goods entering the U.S. would face a 20% tariff. Although this rate is much higher than in the past, it is significantly lower than the initially proposed 46% reciprocal tariff. Additionally, products from other countries routed through Vietnam would be subject to a 40% tariff, addressing U.S. concerns over the transshipment of Chinese goods. Since the deal is not yet finalized, Vietnam may propose additional exemptions to raise tariffs on some U.S. imports.
Meanwhile, U.S. tariff talks have continued with Canada and Mexico. Negotiators have set a deadline of July 21 for a U.S.-Canada tariff agreement and have met almost daily ahead of this date. In June, negotiations snagged over a proposed digital services tax in Canada, which would have a negative impact on American technology companies. However, Canada dropped this policy proposal after President Trump threatened to call off negotiations. Tariff negotiations have also continued with Mexico, but the details of a prospective agreement remain unknown, and there is currently no deadline for a finished deal.
United States plans to enact future tariffs on copper and pharmaceutical goods
On July 8, President Trump announced plans to move forward with tariffs on several specific goods. President Trump indicated that his administration will enact a 50% tariff on all copper products, higher than the 25% tariff that was previously threatened, but did not specify which copper goods would be impacted. The tariff is expected to come into effect on August 1.
Additionally, President Trump threatened to impose tariffs of up to 200% on imports of pharmaceutical products. These tariffs would come into effect at an unspecified date in approximately one to one-and-a-half years to give manufacturers time to adjust. The Trump administration further expects the U.S. Department of Commerce to release the results of ongoing tariff investigations into imports of pharmaceuticals and semiconductors by the end of July. When these results are released, more details are likely to be specified surrounding pharmaceutical tariffs and any potential tariffs on semiconductors.
Although the Trump administration has not commented on how these product-specific tariffs will affect the ongoing reciprocal tariffs, Japanese negotiators indicated that American officials confirmed that these tariff rates would not be stacked on top of existing reciprocal tariff rates. The lack of information on upcoming U.S. sector-specific tariffs has reportedly caused confusion during reciprocal tariff negotiations, as companies raise concerns about committing to a trade deal only to be hit with entirely separate tariffs weeks later.
| Date | Measure |
| Late-July | Results of U.S. tariff investigations into pharmaceuticals and semiconductors expected |
| July 21 | Deadline for U.S.-Canada tariff agreement |
| July 31 | U.S. appeals court to hear arguments on legality of tariff measures |
| August 1 | Deadline for reciprocal tariff negotiations; U.S. tariffs on copper imports come into effect |
| August 12 | Deadline for a more finalized trade deal between the U.S. and China |
| October 8 | New U.S. fees on Chinese-operated and manufactured vessels come into effect |
| After July 8, 2026 | U.S. tariffs on pharmaceuticals expected to be enacted |
| Date to be determined | Potential U.S. tariffs on trucks, commercial vehicles, aircraft parts, and critical minerals; additional 10% tariffs on countries aligned with BRICS economic bloc |
Table 2: Key dates for upcoming trade restrictions (source: Everstream Analytics).
President Trump threatens 10% tariffs on BRICS members and 50% reciprocal tariff on Brazil
In a social media post, President Trump also threatened an additional 10% tariff on countries that comply with the “anti-American policies” of the BRICS intergovernmental organization. He did not clarify what specific anti-American policies would trigger additional tariffs but was likely responding to a statement by the bloc criticizing his trade policies. No further details have been released on when these tariffs could come into effect, or whether they would only affect BRICS members or their political allies outside of the BRICS organization as well. Members of the BRICS group include Brazil, Russia, India, China, South Africa, Egypt, Ethiopia, Iran, the United Arab Emirates, and Indonesia.
Separately from the threat against the BRICS nations, President Trump has already sent a letter promising to enact a 50% reciprocal tariff on Brazil effective from August 1. Unlike all other reciprocal tariff letters, which were not highly specific to each country and lacked details on specific trade-related conflicts, the U.S. letter for Brazil states that the tariffs are mainly due to the alleged unfair political targeting of former Brazilian President Jair Bolsonaro. Bolsonaro is facing a lawsuit in Brazil over his alleged role in a coup attempt. In turn, Brazilian President Luiz Inácio Lula da Silva has promised to match these new U.S. tariffs. No additional details on what this response would entail have been released.
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