Now that the White House appears to have given more direction on its trade and tariff actions, more companies may transition from a wait-and-see approach to more specific courses of action, trade experts with KPMG said during a July 31 webinar on tariffs and trade complexities.
Multiple countries said they're still assessing the impact of the new U.S. tariffs that took effect Aug. 1 (see 2507310081), although some that agreed to deals, including the EU and South Korea, said they now have more stability for their industries.
On the first day of higher tariffs for dozens of countries, prominent Democratic members of the House Ways and Means Committee attacked the policy, while the Republican chairman put a positive spin on soft employment numbers. The Senate minority leader used his daily floor speech to tie the tariffs to broader economic woes, while Republican leadership focused on Democrats' obstructions to prompt confirmation votes for presidential nominees.
Sen. Tim Kaine, D-Va., Senate Minority Leader Chuck Schumer of New York, Senate Finance Committee ranking member Ron Wyden of Oregon and Sen. Jeanne Shaheen, D-N.H., made a joint announcement July 31 that they will request a vote to end the new International Emergency Economic Powers Act declaration for Brazil, that underpins an additional 40% tariff on a portion of Brazil's exports.
Sens. Tim Kaine, D-Va., and Rand Paul, R-Ky., expressed frustration this week with the potential impact on the U.S. spirits industry from the Trump administration's tariffs, saying they will continue fighting to repeal duties introduced through both the International Emergency Economic Powers Act and Section 232.
On the eve of more tariff hikes, four prominent Senate Democrats decried what they said were so-called deals -- or, as Senate Minority Leader Chuck Schumer put it, "a raw deal for the American people."
President Donald Trump, after softening his tone on India with reporters earlier in the day, posted angrily about India and its purchases of Russian oil at midnight on July 31.
All active judges at the U.S. Court of Appeals for the Federal Circuit on July 31 heard oral argument in the lead case on the legality of tariffs imposed under the International Emergency Economic Powers Act. The 11 judges peppered counsel for the government and the parties challenging the tariffs, which include five importers and 12 U.S. states, with questions about whether the statute authorizes tariffs at all; whether there are limits to that tariff authority, should it exist; and whether the major questions or non-delegation doctrines strip IEEPA of its ability to convey tariff authority (V.O.S. Selections v. Trump, Fed. Cir. # 25-1812).
Goods from Mexico that aren't subject to Section 232 tariffs will continue to be excluded from tariffs if they can meet USMCA rules of origin, as will auto parts, President Donald Trump announced about 12 hours ahead of the deadline. For goods outside the Section 232 action, and not eligible for the free-trade agreement benefit, Trump had said the rate would go from 25% to 30%.
The U.S. is raising tariffs on Canada from 25% to 35% effective Aug. 1 because Canada has "failed to cooperate" in stopping flows of fentanyl and other illegal drugs across the border, the White House said in a July 31 fact sheet. Goods qualifying for preferential tariff treatment under USMCA will continue to be exempt from the duties, the White House said, and goods found to have been transshipped to evade the 35% tariff will face a 40% tariff.