Advocacy Update l New Tariffs Announced by Trump Administration

The Latest:

On Friday, President Trump issued an Executive Order imposing new tariffs on goods from over 67 countries, effective August 7. Goods already in transit before this date are exempt, but a new 40% transshipment penalty will apply to shipments rerouted to evade tariffs.

The Details on New Tariff Rates:

Canada:

The Canadian tariff rate has increased from 25% to 35% as of August 1. Importantly, USMCA-compliant goods will remain exempt from the tariffs.

Mexico:

Mexico has an additional 90-day pause as negotiations continue. USMCA compliant goods will remain exempt during this time. All other goods will remain under a 25% tariff.

European Union:

The U.S. and EU reached a framework deal with a 15% tariff that began August 1. European food, wine and spirits are not exempt, though we continue to advocate for an exemption of these products.

Brazil:

A 50% tariff on Brazilian goods is effective Aug. 6 based on a new Executive Order. There are some exemptions for items such as aircraft and energy. However, beef and coffee were not included in the exemptions.

China:

U.S. and Chinese officials recently agreed to seek an extension of their 90-day tariff truce. However, it will not be final until President Trump signs off on the plan. The deadline for that is Aug. 12.

Find a full list of affected countries and rates, here.

What’s Next:

The National Restaurant Association has urged the administration to exempt food and beverage products from tariff negotiations. In a press release and a letter to the U.S. Trade Representative, the Association emphasized that these products are not significant contributors to trade deficits and warned that the tariffs could disrupt ingredient access, raise costs, and burden small businesses and consumers.

As new information becomes available, we will provide updates.