Tax insight

Trump administration announces new country-specific tariff rates, extends reciprocal tariff pause

Insight
5 minute read
July 11, 2025

What happened?

President Trump on July 7 signed an Executive Order extending the expiration of previously modified reciprocal tariffs from July 9 to August 1, 2025. He also sent letters to 14 countries notifying them of updated tariff rates that also will take effect on August 1.

On July 9, the Trump administration announced on social media that eight additional letters were sent to countries detailing modified reciprocal tariffs — including a letter to Brazil for a proposed 50% tariff. Separately, the Trump administration announced a 50% tariff on copper imports. Then on July 10, President Trump announced a 35% tariff on Canada. These tariffs will go into effect on August 1.

Also, this week President Trump announced up to 200% tariffs on pharmaceuticals. Because this was just an announcement, the impact of this potential tariff has not been addressed further in this Tax Insight.

Why is it relevant?

Postponing tariff increases until August 1 grants additional time for the United States to pursue trade agreements with key partners. This action reflects that negotiations with several countries are advancing. China remains under a separate tariff deadline that also has updated tariff rates set to take effect on August 11 if no agreement is reached before.

Actions to consider

Businesses importing goods with the respective countries impacted should prepare for a potential tariff shift on August 1. Trade and compliance teams should review the potential impact of tariff changes relevant to their import footprints, adjust customs procedures, and evaluate sourcing and inventory strategies. Companies also should monitor updates from the US Trade Representative, Customs and Border Protection, and the Commerce Department for any potential new agreements or tariff rate changes before the suspension expires.

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