TARIFF PAUSE TO END: Reciprocal Tariffs Set To Return July 9
All eyes are on the United States and its trading partners as the deadline to make a deal approaches. The Reciprocal Tariffs, reduced to just 10% for most countries for 90 days, are set to return to full force unless trading partners strike a deal with the United States. This change could see rates as high as 50% on goods from some countries.
Background: The Tariff Pause
On Wednesday, April 2, 2025, President Trump signed an executive order imposing “reciprocal tariffs” that touch and concern just about every good imported into the United States. In the beginning, all imported articles were to be subject to a 10% ad valorem duty rate, additional to other duties and taxes. Later, the 10% ad valorem duty rate was scheduled to increase to rates individually calculated for each country. The country-specific rates came into effect at 12:01 a.m. on April 9, 2025.
These heightened rates were short lived, however. President Trump announced via Truth Social that the country-specific tariff rates would be paused for 90 days, and that the 10% rate would apply instead. The President said:
…Conversely, and based on the fact that more than 75 Countries have called Representatives of the United States, including the Departments of Commerce, Treasury, and the USTR, to negotiate a solution to the subjects being discussed relative to Trade, Trade Barriers, Tariffs, Currency Manipulation, and Non Monetary Tariffs, and that these Countries have not, at my strong suggestion, retaliated in any way, shape, or form against the United States, I have authorized a 90 day PAUSE, and a substantially lowered Reciprocal Tariff during this period, of 10%, also effective immediately. Thank you for your attention to this matter.
Current Status Of The Tariffs
This 90 day tariff pause on the heightened, country-specific rates is set to end on July 9. After this deadline, country-specific rates will revert to their original April 2 level unless the President intervenes by extending the deadline or ordering different rates. As a reminder, the country-specific rates as provided in the Executive Order are as follows:
Algeria 30%; Angola 32%; Bangladesh 37%; Bosnia and Herzegovina 36%; Botswana 38%; Brunei 24%; Cambodia 49%; Cameroon 12%; Chad 13%; China 34%; Côte d`Ivoire 21%; Democratic Republic of the Congo 11%; Equatorial Guinea 13%; European Union 20%; Falkland Islands 42%; Fiji 32%; Guyana 38%; India 27%; Indonesia 32%; Iraq 39%; Israel 17%; Japan 24%; Jordan 20%; Kazakhstan 27%; Laos 48%; Lesotho 50%; Libya 31%; Liechtenstein 37%; Madagascar 47%; Malawi 18%; Malaysia 24%; Mauritius 40%; Moldova 31%; Mozambique 16%; Myanmar (Burma) 45%; Namibia 21%; Nauru 30%; Nicaragua 19%; Nigeria 14%; North Macedonia 33%; Norway 16%; Pakistan 30%; Philippines 18%; Serbia 38%; South Africa 31%; South Korea 26%; Sri Lanka 44%; Switzerland 32%; Syria 41%; Taiwan 32%; Thailand 37%; Tunisia 28%; Vanuatu 23%; Venezuela 15%; Vietnam 46%; Zambia 17%; Zimbabwe 18%.
However, some sources report that the President has already announced that the deadline will not be extended. This has caused no small deal of uncertainty, as some analysts believe that countries will scramble to make a deal before the deadline, while others brace for an economic shock from heightened rates. There has been no official statement by U.S. Customs and Border Protection on this subject.
As new tariff regulations continue to evolve, navigating these changes requires experienced legal counsel. At Liang + Mooney, PLLC, our seasoned tariff lawyers can answer your questions and concerns with sophisticated legal solutions. If you seek strategic counsel and insight into how these changes could affect your operations, we invite you to contact us to schedule a consultation.