From AFOA General Counsel, Olsson Frank Weeda:
This is Wednesday’s (July 9) end-of-day summary of significant trade developments.
Country-Specific Reciprocal Tariff
President Trump announced on social media that the U.S. has now issued tariff letters to 22 countries in total, between those issued on Monday and those issued today. These letters lay out the country-specific reciprocal tariff rates that will apply to those countries’ goods as of 12:01 a.m. EDT on August 1st, i.e., when the latest extension to the pause in the imposition of country-specific reciprocal tariffs expires.
Today’s Tariff Letters:
|
Trading Partner |
New Reciprocal Tariff Rate |
Tariff Letter Issued |
|
|
Brazil |
50% |
10% |
https://truthsocial.com/@realDonaldTrump/posts/114825119138468153 |
|
Sri Lanka |
30% |
44% |
https://truthsocial.com/@realDonaldTrump/posts/114824296854236628 |
|
Libya |
30% |
31% |
https://truthsocial.com/@realDonaldTrump/posts/114824023967307505 |
|
Iraq |
30% |
39% |
https://truthsocial.com/@realDonaldTrump/posts/114824023967307505 |
|
Algeria |
30% |
30% |
https://truthsocial.com/@realDonaldTrump/posts/114824019927996260 |
|
Moldova |
25% |
31% |
https://truthsocial.com/@realDonaldTrump/posts/114824018420835079 |
|
Brunei |
25% |
24% |
https://truthsocial.com/@realDonaldTrump/posts/114824016607656018 |
|
Philippines |
20% |
17% |
https://truthsocial.com/@realDonaldTrump/posts/114824014589920439 |
Terms outlined in today’s tariff letters mirror those in the tariff letters released on Monday:
- New tariff rates will take effect on August 1.
- The letters state that the tariff rates are separate from “Sectoral Tariffs.”
- Goods determined to be transshipped to evade a higher tariff will be subject to a higher tariff. There is no definition of this key term.
- Tariffs can be modified, upward or downward, depending on the continued relationship between the US and the specified country.
- Any retaliatory tariff rate will be added to the reciprocal tariff rate specified in the letter.
In addition to trade imbalance concerns, the Brazil letter states that the 50% tariff rate is based in part on Brazil’s alleged attacks on its own free elections and on American’s free speech rights. The letter also states that President Trump has instructed the US Trade Representative to “immediately” initiate a Section 301 investigation of Brazil, due to Brazil’s alleged attacks on the digital trade activities of American companies and other unspecified unfair trade practices.
As per our morning update, the letter to the European Union should be issued within the next two days, according to statements made by President Trump during today’s Cabinet meeting.
We will continue to circulate an end-of-day summary of significant trade developments throughout the week and share further updates as letters are issued.