Updates concerning Measures by and against the USA
Retaliatory Tariffs imposed by the USA have come into effect
On 2nd April 2025, the USA imposed additional tariffs under the International Emergency Economic Powers Act (IEEPA), which consisted of:
- A baseline tariff of 10% on all imports (effective 5th April 2025)
- A reciprocal, country-specific tariff (effective 9th April). This was based on a list of 57 countries with tariffs ranging from 11% to as high as 50%
- Imports from India were subjected to additional tariff of 27%.
Temporary suspension of retaliatory tariffs
The baseline tariff of 10% became effective on 5th April 2025, and all imports into the USA were subject to an additional tariff of 10%, over and above the Basic Customs Duty. However, through an Executive Order of the US President, the country-specific retaliatory tariffs were temporarily suspended. A 90-day moratorium or an adjustment period was put into effect, till 9th July 2025. The temporary suspension of duties was applicable to all countries subject to retaliatory tariffs, except China.
On 7th July 2025, the US President issued another Executive Order, whereby the temporary suspension of implementation of the retaliatory tariffs was extended further. By virtue of the order, the retaliatory tariffs have now come into effect from 1st August 2025.
In the same order, the USA modified the retaliatory tariffs for Japan, South Korea, South Africa, Kazakhstan, Laos, Malaysia, Myanmar, Tunisia, Bosnia and Herzegovina, Indonesia, Bangladesh, Servia, Cambodia and Thailand. While the tariffs for Japan and Tunisia were increased marginally, the tariffs for all other countries were reduced. Further, it was notified that there may be additional modifications to the tariff structure for other countries as well.
Trade negotiations with trading partners
The imposition of retaliatory tariffs was accompanied with a general advisory that the USA was open to negotiations on the quantum of such measures. It was clarified that negotiations with all trading partners were welcome, as long as such partners agreed to remove tariff and non-tariff barriers and expand market access for American exporters. As on 31st July 2025, the following trade deals have been agreed to between the USA and respective trading partners –
a. Vietnam – On 2nd July 2025, the US President announced that the USA and Vietnam agreed to a trade deal. It was announced that the retaliatory tariffs on Vietnam would be reduced to 20%, from 46%. Vietnam committed to provide preferential market access to American goods including large-engine cars. However, the trade deal has not been formally announced.
b. Indonesia – On 22nd July 2025, Indonesia and the USA reached a trade deal. As a result of the deal, the reciprocal tariffs on Indonesian imports were reduced from 32% to 19%. Indonesia agreed to eliminate tariff barriers on a preferential basis on over 99% of American exports.
c. Japan – The USA and Japan agreed to a trade deal, which was announced on 23rd July 2025. Under the deal, Japan agreed to invest USD 550 billion, directed by the USA, to rebuild and expand core American industries. In response, the retaliatory tariffs on Japanese imports were reduced to 15%, from 24%.
d. European Union – On 28th July 2025, the USA and the European Union announced a trade deal. The European Union agreed to purchase USD 750 billion in US energy and make investments worth USD 600 billion in the USA by 2028. As against such investment, the USA agreed to reduce the retaliatory tariffs on European imports, from 20% to 15%.
e. Brazil – On 30th July 2025, the USA announced tariffs of 50% on most imports from Brazil, in response to, inter alia, political developments in Brazil. However, important sectors, including aircraft, energy and orange juice have been excluded.
f. Pakistan – On 30th July 2025, the USA and Pakistan announced a trade deal. Pursuant to this deal, imports from Pakistan would be subject to tariffs at 19% and in response, the USA would invest in oil exploration in Pakistan.
g. Mexico – On 31st July 2025, the USA granted a reprieve of another 90 days for imports from Mexico. Pursuant to this, application of retaliatory tariffs on Mexico would be deferred by another 90 days, to allow the USA and Mexico to negotiate a trade deal.
Trade negotiations with India
While some trading partners have agreed to trade deals with the USA, India is yet to agree to a trade deal on similar lines. On 30th July 2025, the US President announced that imports from India would be subject to tariffs at 25%, starting 1st August 2025. The announcement also indicated that further tariffs or other measures may be in the offing, in response to India's arms and energy imports from Russia.
India notifies WTO of suspension of concessions in response to the US Tariffs on automobile parts (04 Jul)
On 4th July 2025, India notified the WTO of its proposed retaliatory tariffs against the USA. India maintains that increased tariffs imposed under Section 232 were in essence safeguard duties that had not been properly notified to the WTO. India argued that these measures were inconsistent with the obligations of the USA. under WTO Law. Accordingly, India has proposed suspending concessions of equivalent value by increasing tariffs on selected products originating in the USA The estimated tariff collection from the proposed concessions is USD 723.75 million.
The US President Issues Executive Order Suspending Duty-Free De Minimis Treatment (30 Jul)
On 30th July 2025, the US President issued an Executive Order suspending dutyfree de minimis treatment for imports from all countries, effective 29th August 2025. Under the de minimis treatment, imported goods that are valued at or under USD 800 were exempt from tariff duties.
Previously, the de minimis treatment had been suspended only for Mexico, Canada, Hong Kong and China due to fentanyl related concerns, which was later paused due to lack of a system to collect duties. However, the said system is now in place, and the suspension has been expanded to all countries.
Under this new treatment, all shipments (except certain postal shipments) must pay all applicable duties, taxes, fees and other charges and an ACE filing must be made for such shipments. Further, Section 3 of the Executive Order provides the duty rates for the international postal shipments.
The US President Issues Executive Order Imposing 50% Tariff on SemiFinished Copper Products and Intensive Copper Derivatives (31 Jul)
On 30th July 2025, the US President issued a Presidential proclamation imposing 50% tariff on all imports of semi-finished copper products and intensive copper derivative products. The list of products subject to the tariff is provided in the link herein.
The tariff applies to goods entered or withdrawn for consumption on or after 12:01 am, EDT, 1st August 2025 and is in addition to existing duties, taxes and fees or any other applicable charges. Further, the Secretary of Commerce must establish a process within 90 days to potentially expand the product scope.
The products with non-copper content will still be subjected to other applicable tariffs, including those under the International Emergency Economic Powers Act, addressing the national emergency on fentanyl and drug trafficking. However, if a product falls under both copper tariffs and automobile / auto parts tariff, only the automobile related tariff will apply.
Global Updates
8th Trade Policy Review of Norway concluded
On 30th June and 2nd July 2025, Norway's trade policies were reviewed under the WTO's Trade Policy Review Mechanism. Member delegations commended Norway for its swift ratification of the Agreement on Fisheries Subsidies and its participation in initiatives on services regulations, e-commerce, gender and trade, and investment facilitation. Norway was also praised for its active role in modernizing trade governance and for extending support to developing countries through initiatives such as Aid-for-Trade, technical assistance, and funding programs. Additionally, its growing digital integration and high level of transparency was commended as well. As a party to the EEA Agreement, Norway enjoys access to the EU internal market. However, concerns were raised about its agricultural policies, which are not covered by the EEA Agreement and remain protectionist, characterized by high tariffs and other trade barriers.
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