PwC | Trump administration announces additional country tariff rates, trade agreement ahead of August 1 deadline

What happened?

Over the past week, President Trump has continued to pursue tariff enforcement measures as part of the administration’s broader trade policy agenda. President Trump has escalated the administration’s tariff strategy with new and proposed duties on goods from the European Union (EU), Mexico, Canada, and Russia, while simultaneously pursuing trade negotiations that led to preliminary agreements with Vietnam and Indonesia, and a potential agreement with India nearing completion. These steps are aimed at reducing bilateral tariffs and expanding US exports. Letters to additional countries are expected to be released soon, notifying them of assigned tariff rates.

President Trump this week also addressed sector tariffs, again stating that he would impose tariffs on pharmaceutical imports, as well as on semiconductors.

Why is it relevant?

These actions reflect intensifying trade negotiations, with the August 1 effective date serving as a critical deadline for countries to secure revised trade terms and avoid new duty exposure. Businesses continue to grapple with supply chain disruption and unexpected costs, coupled with a growing desire for more tariff certainty. The timeline for the conclusion of negotiations remains unclear.

Actions to consider

For businesses, these developments signal the need to reassess cross-border operations, evaluate tariff impacts on imports and exports, and continue to proactively engage in mitigation planning to manage potential cost increases and compliance risks. Implementing dynamic modeling and planning strategies is crucial. Companies should closely monitor for future developments in the lead up to August 1 — including potential retaliatory actions taken by countries in response to the Trump Administration’s tariffs.

Tariff developments

Following July 4, President Trump sent over 20 letters to countries including Canada, Japan, and Brazil with new tariff rates ranging from 20% to 50%, some of which are higher than the April 2 rates (see PwC’s Tax Insight dated July 11, 2025). On July 12, the United States announced new 30% tariffs on all goods from the EU and Mexico, effective August 1, via letters released on social media. These actions followed earlier warnings on July 11, where President Trump hinted at a 35% tariff on Canadian goods outside the scope of the USMCA and floated the idea of a 50% tariff on digital services from the EU. On July 16, President Trump also commented that letters to more than 150 countries would be released soon, assigning them tariffs of 10% or above.

Meanwhile, formal trade talks are underway with multiple impacted countries, including Canada, Mexico, the EU, and Bangladesh, in efforts to secure trade agreements and mitigate the implementation of the Trump administration’s reciprocal tariffs.

Separately, the United States and Vietnam on July 2 reached a preliminary trade agreement that would reduce US tariffs on Vietnamese-origin goods to 20% and imposed a 40% tariff on goods transshipped through Vietnam. In exchange, the United States said that Vietnam agreed to eliminate tariffs on US imports. The preliminary agreement also addressed US concerns over circumvention of tariffs on Chinese goods.

Additionally, on July 14, President Trump issued a 50-day ultimatum to Russia, warning that if it does not withdraw from Ukraine, the US will impose a 100% tariff on all Russian imports and apply “secondary tariffs” on other nations that continue to engage in significant trade with Russia.

Further, on July 15, President Trump announced a preliminary trade agreement with Indonesia, after previously threatening a 32% tariff. Indonesia agreed to pay a 19% tariff on its exports to the United States while US goods will enter Indonesia tariff‑free. The deal includes commitments for Indonesia to buy $15 billion in US energy, $4.5 billion in American agricultural products, and 50 jets.

Also, on July 16, President Trump commented that a trade agreement with India is close and may be completed before August 1. This agreement is in addition to framework agreements already reached with China and the United Kingdom.

In addition to the previously announced 50% tariff on copper imports, President Trump on July 16 reiterated his intention to impose tariffs on pharmaceutical imports, likely by the end of the month, with similar duties on semiconductors to follow. Indications are that the pharmaceutical tariffs could start off at a low tariff rate and then move to a much higher rate after a year or more; however, no initial tariff percentage has been specified to date.

Tariff impact

Based on PwC’s US Tariff Industry Analysis, Figure 1 below reflects revised projections of annual tariff impact based on the latest developments. PwC’s US Tariff Industry Analysis has been updated to include the following rates:

• Canada – 35%
• EU – 30%
• Indonesia – 19%
• Mexico – 30%
• Vietnam – 20%
• Russia – 100%

The figure does not include sector-specific tariffs, such as tariffs on copper of 50% and potential tariffs on pharmaceuticals and semiconductors. See PwC’s prior Tax Insights dated June 11 and July 11 for more details regarding PwC’s Industry Analysis.

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