Trump Extends “Reciprocal” Tariff Pause, Announces Modified Tariffs on More Than a Dozen Countries
President Trump has extended the 90-day pause on “reciprocal” tariffs over 10% until Aug. 1 and issued revised reciprocal tariff rates for several countries, set to take effect if no agreements are reached by then.
The extension: President Trump issued an executive order effectively extending the baseline additional 10% “reciprocal” tariff on all countries (except Mexico, Canada and China) until Aug. 1.
- No new trade deals have been announced, though the White House has hinted that some may be revealed in the next day or two.
- This pause is an extension of the original pause in the “reciprocal” tariffs that were announced on April 2. The pause has been in place since April 9.
Country-specific rates: The president also announced revised “reciprocal” tariffs for specific countries in the form of letters to his counterparts. These rates are similar to those announced in April, with some slightly lower.
- Courtesy of the NAM’s trade policy experts, here is a link to a chart comparing the April 2 rates with the July 7 rates and links to where each letter is posted on the president’s Truth Social account.
- These letters also declared that if U.S. trading partners eliminate tariffs and other trade barriers, the U.S. may adjust the rates “upward or downward.”
- However, the letters warn of retaliation if countries raise tariffs in response to these rates.
Other tariffs: The July 7 EO does not modify other International Emergency Economic Powers Act tariff rates applied to Canada, Mexico or China, and does not change any Section 232 tariffs in effect.
Manufacturing accelerator: The NAM has offered its own policy solution for the administration that will jumpstart American manufacturing, the U.S. Manufacturing Investment Accelerator Program .
- This program offers a way to bring in inputs essential to manufacturing in the U.S.—and it rewards manufacturers that expand production, invest in new equipment and create jobs here at home.