The Bottom Line
President Donald Trump announced a new slew of tariffs targeted to go into effect on August 1. The new round of tariffs targets Japan and South Korea with 25% tariffs as Trump urges the two countries to make a deal. The President also proposed 30% tariffs on South Africa, 25% tariffs on Malaysia and Kazakhstan, and a 40% tariff on Myanmar. According to the White House, additional tariff letters will be sent out to around 12 different countries informing them of additional tariffs and encouraging them to make a deal. The letters’ target countries including Laos, Tunisia, Bosnia and Herzegovina, Indonesia, Bangladesh, Serbia, Cambodia, and Thailand. These tariffs effectively serve as an extension of the threatened “Liberation Day” tariffs set to go into effect July 9.1 According to Treasury Secretary Scott Bessent, the tariff rates for countries who have not made a deal with the U.S. will “boomerang” back to the threatened “Liberation Day” amounts on August 1. As this deadline approaches, the President promised that if countries raised tariffs in retaliation against the United States, the United States would apply corresponding tariffs of the same amount in retaliation. In addition to the tariffs above, Trump threatened tariffs against countries aligning themselves with a coalition of countries made up of Brazil, Russia, India, and China (BRICS).2 These tariff rates have yet to be announced.
The President announced 50% tariffs on copper and a 200% tariff on pharmaceuticals on July 8.3 According to President Trump, companies will have a year and a half to bring pharmaceutical supply chains into the United States. Negotiations continue for the EU which is working towards a trade deal with the US while tariffs loom.
As the trade environment continues to change with respect to tariffs, Forvis Mazars can help you and your business navigate the changing landscape. We have numerous resources to help you stay informed on tariffs and other issues impacting your business on our website. To receive more in-depth guidance, contact a member of our team here.