U.S. tariff and trade policy continues to evolve as the White House addresses trade deficits and national security concerns with trade partners.
PHARMACEUTICAL AND SEMICONDUCTOR SECTION 232 TARIFF TIMELINE
Section 232 tariffs on imported pharmaceuticals will commence at the end of July with a nominal duty rate. U.S. production facilities will have approximately one year to expand capacity before the tariff rate increases to a substantially higher level. A parallel schedule will apply to semiconductor imports, reflecting streamlined implementation mechanics for that sector. Importers should review bonded‑warehouse options to defer duties during the initial phase, update customs classification protocols, and coordinate with domestic contract manufacturers to align inbound shipment schedules with evolving duty obligations.
USTR SECTION 301 INVESTIGATION INTO BRAZIL
On July 15, the Office of the U.S. Trade Representative (USTR) initiated a Section 301 inquiry into Brazil, a country whose practices may be discriminatory against American businesses.
Key focus areas include:
Restrictions on online platform revenue models via fines and suspensions following judicial actions on content
Preferential tariff treatment for Mexican and Indian imports compared with 14 percent to 35 percent MFN rates on U.S. automotive and parts exports
Reinstated 18 percent tariff on ethanol after seven years of duty‑free access, resulting in an estimated $708 million in lost annual U.S. sales
Alleged deficiencies in anti‑corruption enforcement and intellectual property protection
Illegal deforestation practices confer competitive advantages to agribusiness exporters.
Comments and requests to appear at the September 3 public hearing must be submitted by August 18 at https://comments.ustr.gov/s/using docket number USTR-2025-0043. Supply network stakeholders are encouraged to quantify the cost impact of these Brazilian policies on U.S. operations, propose targeted tariff or non‑tariff countermeasures, and engage trade counsel to prepare detailed technical submissions.
EXTENSION OF RECIPROCAL TARIFF PAUSE THROUGH AUGUST
Trading partners began receiving letters from the White House in early July with new reciprocal tariff percentages. These letters initiated several trade agreements with U.S. trade partners. Frequent updates are anticipated as the U.S. August 1, 2025, deadline for negotiations approaches.
A related White House social media announcement on July 6 introduced an additional 10 percent surcharge on exports from any country adopting BRICS alignment positions, although formal implementation guidance is pending.
Customs and Border Protection, the International Trade Commission, and other agencies are expected to publish detailed operational rules in the Federal Register within the coming weeks.
