US tariff talks: Latest update

US Trade Tariff Agenda Accelerates Ahead of August 1 Deadline

On April 2025, President Donald Trump announced a tariff plan that applies extra duties to dozens of trading partners. The new levies ramp up from the 10 % baseline to higher rates on the United States’ trade surpluses.

The twice‑postponed effect date is now Friday, August 1. Washington has broadened its list of targets while securing agreements with the European Union, Britain, Vietnam, Japan, Indonesia and the Philippines.

Key Partner Agreements

• European Union – A 15 % tariff on EU exports, down from the 30 % threat.
• Britain, Vietnam, Japan, Indonesia, Philippines – Conditional concessions to avoid higher duties before August 1.

Ongoing Negotiations

South Korea – Heightened Pressure

Seoul races to finalize an agreement after Tokyo’s success. A government source told AFP that Seoul may propose > $100 billion in investment, with Samsung and Hyundai Motor expected participation. The final phase of negotiations is underway to avert a 25 % duty, according to National Security Advisor Wi Sung‑lak.

India – Cautious Optimism

Commerce Minister Piyush Goyal expressed optimism that India can avoid the 26 % tariff threat. He said there are no sticking points or immigration rule disputes in the talks. Media reports, however, suggest the prospects of an interim deal before August 1 have dimmed.

Taiwan – Working Hard

Premier Cho Jung‑tai and Vice President Hsiao Bi‑khim said Taipei’s team is working almost 24 hours a day to protect trade balance, industrial interests and deepen cooperation.

Canada & Mexico – Deal Unclear

Although Canada and Mexico were spared from the April tariffs, their goods face a separate 25 % duty if they fall outside the North American pact. Mexico will jump to 30 %, Canada to 35 % on August 1. Mexican President Claudia Sheinbaum is pursuing every possible avenue to avoid duties, and Trump confirmed no deal with Canada yet.

Brazil – Political Nature

Brazil braces for a virtual trade embargo on planes, grains and other goods if the 50 % tariff on its exports takes effect on August 1. The United States has a trade surplus with Brazil, but Trump’s political motive is clear: he cited a judicial “witch hunt” against former President Jair Bolsonaro when unveiling the rate. A last‑minute deal appears unlikely given the political context.

Outlook

With the August 1 deadline fast approaching, the United States and its trading partners must finalize agreements or risk steep duties that could reshape global trade flows.