President Trump has announced sweeping adjustments to existing reciprocal tariffs that will affect most countries which have yet to reach individual trade agreements with the US.
As outlined through executive order, "Some trading partners have agreed to, or are on the verge of agreeing to, meaningful trade and security commitments with the United States, thus signaling their sincere intentions to permanently remedy the trade barriers [...] Other trading partners, despite having engaged in negotiations, have offered terms that, in my judgment, do not sufficiently address imbalances in our trading relationship or have failed to align sufficiently with the United States on economic and national-security matters. There are also some trading partners that have failed to engage in negotiations with the United States or to take adequate steps to align sufficiently with the United States on economic and national security matters."
The EO establishes individual tariff rates by country and will be considered effective "with respect to goods entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. eastern daylight time 7 days after the date of this order [July 31]." Considerations are made for goods in transit before that date.
President Trump also announced an increase of the general tariff on Canadian goods from 25% to 35%, effective August 1st.
"Given Canada’s continued failure to arrest traffickers, seize illicit drugs, or coordinate with U.S. law enforcement and Canada’s retaliation against the United States for the President’s actions to address the unusual and extraordinary threat to America, further presidential action is necessary and appropriate to protect American lives and the national security and foreign policy of the United States." The fact sheet goes on to provide exclusions for goods which already qualify for preferential treatment under the USMCA, and adds additional penalty for goods attempting to evade the tariff through transshipment.
O.T.S. will continue to monitor this fluid situation and provide updates as they become available. Please do not hesitate to reach out to your O.T.S. Sales Representative for more information.