Sidley trade lawyer Ted Murphy sent a note to clients about his thoughts on the U.S.-Vietnam tariff deal announced July 2 "based on what we (think we) know about the deal thus far," though he noted that the deal is likely still being negotiated.
Treasury Secretary Scott Bessent said in an interview with CNBC on July 3 that the Vietnam deal is "finalized in principle" and that 20% will replace the current 10% reciprocal tariff. As for which goods will be subject to 40% tariffs, Bessent didn't add any clarity. "A huge amount of the trade that comes from Vietnam is what’s called transshipment from China," he said. "We’ll see what happens with the transshipment."
President Donald Trump expressed pessimism about reaching a trade deal with Japan, and suggested that the tariff rate would be higher than the 24% country-specific rate briefly in effect April 9 in comments to reporters traveling on Air Force One July 1.
President Donald Trump posted on social media that Vietnamese goods would face a 20% tariff, rather than an originally proposed 46% reciprocal tariff, in exchange for zero tariffs on U.S. exports.
President Donald Trump and Treasury Secretary Scott Bessent, in different appearances on the same day, said that negotiations do not need to conclude by July 8 to avoid higher reciprocal tariff rates at 12:01 July 9.
Even though CBP has given some guidance on how to interpret the "in transit" reciprocal tariff exclusions, the trade is still grappling with how to proceed with the changes, according to a June 27 letter to DHS Secretary Kristi Noem and incoming CBP Commissioner Rodney Scott.
Two former general counsels from the Office of the U.S. Trade Representative disagreed sharply about the need for the current aggressive tariff hikes. But Jennifer Hillman, who is helping to write amicus briefs for members of Congress challenging the legality of International Emergency Economic Powers Act tariffs, and Steven Vaughn, who served in the first Trump administration, agree what would happen if the current administration loses the case.
Special tariff treatment for U.K. automobiles, auto parts and goods falling under the Civil Aircraft Agreement will begin June 30, according to a notice released by the Commerce Department June 27.
At an appearance at the Washington International Trade Association, Sen. Maria Cantwell, D-Wash., criticized the Trump administration for instituting an "on-again, off-again tariff structure, that, in some instances, are higher than even the Smoot-Hawley levels."
The House Aerospace Caucus co-chair, and 23 other Republicans, are asking the administration to preserve zero tariffs for aerospace goods that have been in place since 1979 under the Civil Aircraft Agreement, and to push for more countries to pledge to allow imports of commercial aircraft and parts duty-free. (The U.S. is one of 58 countries that follow the agreement, though since the reciprocal tariffs were imposed, most aerospace imports outside Canada, Mexico and the U.K. are facing tariffs.)