The global trade landscape has been in constant flux since the beginning of 2025. Amid a flurry of executive actions, evolving tariff structures, and high-stakes negotiations, staying informed is more important—and more difficult—than ever. Here’s a breakdown of the latest developments shaping US trade policy and its key relationships.
Reciprocal Tariff Suspension
A major area of confusion in recent months has been the status of the IEEPA reciprocal tariff suspension implemented under Executive Order 14266, issued April 9, 2025. This order temporarily suspended newly issued country-specific tariff rates and instead imposed a uniform 10 percent global tariff on most imports—with the exception of goods from China, Hong Kong, and Macau.
While the intent was to give the US time to negotiate new bilateral tariff agreements—initially aiming for “90 deals in 90 days”—progress has been limited. To date, only the United Kingdom has reached a finalized agreement, and a framework has been announced with China.
President Trump recently stated that letters would be sent to US trading partners to establish new tariff terms before the July 8, 2025 expiration of the current suspension. However, it remains unclear what those letters will include or whether any new tariff rates outlined will take effect immediately or later.
US–China
On June 27, China’s Ministry of Commerce released a statement confirming the signing of a trade agreement framework with the US—an announcement made one day after President Trump publicly acknowledged the deal. The arrangement is framed as a mechanism to implement outcomes from a US–China Economic and Trade Meeting in Geneva.
Key provisions of the framework include:
- Continued application of the 10 percent reciprocal tariff under IEEPA (country-specific).
- Ongoing 20 percent fentanyl-related IEEPA tariff.
- Maintenance of existing Section 301 tariffs, which can be as high as 25 percent, in addition to standard MFN (most-favored-nation) duties.
Meanwhile, the suspension of country-specific IEEPA tariffs for China, Hong Kong, and Macau—enacted through Executive Order 14298 on May 12, 2025—remains in place. The trade community is closely monitoring for any updates clarifying when and how these various tariff measures will be enforced, particularly the exact duty rates applicable to Chinese-origin goods.
US–United Kingdom
The US and UK have officially finalized an economic prosperity agreement under Executive Order 14309, dated June 16, 2025. This deal offers significant benefits for both sides and marks the first completed trade pact under the reciprocal tariff suspension period.
Highlights of the agreement include:
- Annual import quota of 100,000 UK-made vehicles at a 10 percent tariff (7.5 percent quota rate + 2.5 percent MFN).
- Automotive parts from the UK will also be subject to a 10 percent tariff.
- Tariff-rate quotas (TRQs) for steel, aluminum, and derivative products will be implemented based on MFN rates.
- Potential preferential treatment for pharmaceutical products, pending a Section 232 investigation.
- Zero-tariff trade for select aerospace products.
This deal signals a notable move toward deepening transatlantic trade ties and offers a potential template for other agreements.
US–Canada
In a dramatic turn, the White House announced on June 27 that all trade negotiations with Canada were suspended, widely viewed as retaliation for Canada’s digital services tax. However, just two days later, Canada reversed course and rescinded the tax, opening the door for renewed talks.
Despite this reversal, tensions remain high. On July 10, President Trump announced plans to impose a 35% tariff on Canadian goods—which would begin August 1—citing ongoing trade imbalances and what he called unfair practices. While trade negotiations are expected to resume, this aggressive tariff stance signals a more confrontational approach that could reshape the North American trade landscape—and cast uncertainty over the future of USMCA-related provisions.
US–Vietnam
On July 2, 2025, President Trump announced that the United States had allegedly reached a trade agreement with Vietnam. While official documentation is not yet available, early reports suggest that:
- US imports from Vietnam will be subject to a 20 percent tariff.
- Goods suspected of transshipping through Vietnam could face an elevated 40 percent tariff.
These tariffs appear to be in addition to any existing trade remedy duties, such as those under Sections 232 or 301. Notably, there has been no indication of an agreement addressing Section 232 tariffs on autos or steel and aluminum, raising questions about how this new deal will be implemented or enforced. The trade community is awaiting further clarification.
Navigating What’s Next
With the July 8 expiration date fast approaching for the reciprocal tariff suspension, the coming days will be critical in shaping the future of US trade policy. Much remains uncertain—particularly regarding tariff enforcement, the outcome of pending negotiations, and the status of suspended duties.
We will continue to monitor these developments and provide updates as they become available. For expert insight on how to navigate these complex and rapidly evolving tariff changes, reach out to Mohawk Global Trade Advisors. Our team is here to help you understand the implications for your business and stay ahead of compliance risks.