Overview

• President Trump signed an executive order on August 1 formalizing reciprocal tariffs of 10% to 50% on imports from 69 countries, effective August 7.
• Tariff rates will be calibrated to bilateral trade imbalances, with higher duties for larger deficits and a base 10% rate for nations with trade surpluses.
• Mexico received a 90-day extension to maintain its current 25% rates while negotiating broader trade concessions.
• The U.S. secured preliminary deals with the European Union, United Kingdom, Japan and South Korea to cap their duties at 10% to 15% under the new framework.
• U.S. automakers reported multimillion-dollar quarterly losses and global markets fell as investors reacted to the impending overhaul, with India, Taiwan and New Zealand continuing negotiations.