On July 7, President Trump announced that the baseline additional 10% reciprocal tariff would be extended to August 1. He also sent letters to 14 countries, notifying them of their adjusted tariff rate if an agreement is not reached before the new deadline.
Following the initial announcement on July 7, the President sent additional letters to key trading partners including Brazil, Canada, the European Union (EU) and Mexico. In each letter, he outlined the new reciprocal tariff rate set to take effect August 1 and emphasized that the U.S. reserves the right to increase the rate if any country responds with its own tariffs. Furthermore, the reciprocal tariff rate is separate from all sectoral tariffs previously announced.
In addition, the President reminded each country that no tariffs would apply if a company decides to build or manufacture its products within the U.S. He added, "we will do everything possible to get approvals quickly, professionally, and routinely – In other words, in a matter of weeks."
Brazil
On August 1, Brazil will face a 50% reciprocal tariff on all Brazilian products. In the letter, President Trump attributed the unusually high rate to Brazil's treatment of former President Bolsonaro and "Brazil's insidious attacks on Free Elections, and the fundamental Free Speech Rights of Americans."
Following Trump's announcement, Brazilian President Luiz Inácio Lula da Silva posted "Brazil is a sovereign nation with independent institutions and will not accept any form of tutelage." He added "any unilateral tariff increases will be addressed in accordance with Brazil's Economic Reciprocity Law."
Canada
Beginning August 1, Canada will face a 35% reciprocal tariff on all products, in response to Canada's decision to impose retaliatory tariffs on U.S. goods following the 20% fentanyl-related tariffs introduced earlier this year. The President also mentioned Canada's "extraordinary" tariffs and other trade barriers affecting U.S. dairy farmers.
On July 11, in response to an ABC News reporter, Trump left open the possibility that USMCA goods will remain exempt from the higher 35% rate, stating, "We're going to see."
European Union
Beginning on August 1, the EU will face a 30% tariff, an increase from the 20% announced on April 2 "Liberation Day." The EU reacted to the tariffs, stating it "will take all necessary steps to safeguard EU interests, including the adoption of proportionate countermeasures if required."
Mexico
Beginning on August 1, Mexico will face a 30% tariff on all products. The President criticized Mexico for failing to stop the flow of fentanyl into the U.S. but praised the country's efforts in helping to secure the southern border.
President of Mexico, Claudia Sheinbaum, expressed confidence in reaching an agreement with the U.S., noting, "The letter clearly states that the aim is to reach an agreement so that these tariffs are not imposed."
Below is a chart of the August 1 reciprocal tariff rates announced to date.
| Country | New rate |
|---|---|
| Algeria | 30% |
| Bangladesh | 35% |
| Bosnia and Herzegovina | 30% |
| Brazil | 50% |
| Brunei | 25% |
| Cambodia | 36% |
| Canada | 35% |
| European Union | 30% |
| Indonesia | 32% |
| Iraq | 30% |
| Japan | 25% |
| Kazakhstan | 25% |
| Laos | 40% |
| Libya | 30% |
| Malaysia | 25% |
| Mexico | 30% |
| Moldova | 25% |
| Myanmar | 40% |
| Philippines | 20% |
| Serbia | 35% |
| South Africa | 30% |
| South Korea | 25% |
| Sri Lanka | 30% |
| Thailand | 36% |
| Tunisia | 25% |
Braumiller Law Group PLLC will continue to provide updates on new tariffs and trade agreements as necessary.
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