- Extension of Tariff Pause: The 90-day pause for country-specific tariffs has been extended from July 9, 2025, to August 1, 2025. President Trump issued “tariff letters” to 14 countries detailing new tariff rates ranging from 25% to 40% effective August 1.
- Strategic Trade Actions: Businesses are advised to closely monitor trade policy developments and assess the potential impact of tariffs on their supply chains. Strategic adjustments to contracts and pricing agreements may be necessary in response to the evolving tariff landscape.
- Ongoing Negotiations and Exemptions: The letters clarify that current and future sectoral tariffs imposed under Sec. 232 authority will be exempt from the new rates. Notably, major trading partners like the EU and India did not receive tariff letters, suggesting ongoing negotiations that could lead to framework agreements.
Source EY
