Before President Trump even took office for the second time this January, he was threatening to impose sky-high tariffs on all U.S. trading partners, no matter the existing relationship or perceived trade deficit. After months of announcements and delays, the United States has now outlined a framework for several major trade agreements — none quite as high as the initial threats, but every one still significant for supply chains. 

President Trump’s latest move to "upend global commerce" is set to raise tariffs on more than five dozen countries, if they don't reach deals with the United States within a week, The New York Times reports. "Syria, Laos and Myanmar were handed among the steepest tariff rates of 40-41%," the article states. 

Late last week, the United States and Japan agreed to 15% reciprocal tariffs on Japanese exports, reports CNN. Further, the 15% tariffs on both automobiles and car parts will put Japan at an advantage over other major vehicle exporters, which face a 25% levy on automotive sector exports. Japan will also invest $550 billion in the United States “in the form of equity and loans to support Japanese business investments in key fields such as pharmaceuticals and semiconductors,” CNN continues. 

Meanwhile, Trump met with the commission of the European Union to agree to a “15% import tariff on most EU goods,” according to Reuters. Trump also told reporters that the “EU plans to invest $600 billion in the United States and dramatically increase its purchases of U.S. energy and military equipment.” Notably, the 15% rate doesn’t apply to all goods: The United States will keep the 50% tariff on steel and aluminum in place. And there will be no tariffs from either side on aircrafts and aircraft parts, certain chemicals, specific generic drugs, semiconductor equipment, some agricultural products, natural resources, and critical raw materials, Reuters notes. The EU agreement follows an earlier deal with the United Kingdom for a flat 10% tariff, meaning the UK may benefit from the tariff rate the EU was allotted, explains the BBC.  

Also this week, President Trump extended the existing tariffs with Mexico, America’s largest trading partner. As he pauses on higher tariffs, the status quo will continue, meaning goods from Mexico will be taxed at 25%. However, items that are compliant with the United States-Mexico-Canada trade deal will be exempt, barring certain sectoral tariffs. 

Finally, the United States and China agreed to extend their tariff pause for another 90 days to allow both parties more time to negotiate, per the AP. U.S. Treasury Secretary Scott Bessent told the outlet that the two sides need to “de-risk” certain industries, including rare earths, semiconductors and medicines, and encourage more domestic manufacturing. Until the new agreement takes shape, the United States maintains a 30% tariff on China; China retaliated with a 10% tariff on the United States. 

Barring many years of significant investments in U.S.-based manufacturing, the tariff policy in China is likely to increase production in emerging markets, such as Vietnam and India, as a means of “structural reallocation.” For example, “Apple now sources 15% of its iPhones in India, a figure expected to rise to 30% by 2026.” India’s tariff rate on electronics tips the scales at 0%. And the country’s semiconductor, AI infrastructure and solar PV sectors are also gaining traction. For its part, Vietnam also boasts a 0% tariff rate on electronics, and Apple plans to shift 65% of AirPods production there by 2025. 

Tools for a changing trade landscape 

To thrive in these uncertain times, supply chain organizations must prioritize talent development and employee education, fostering a workforce capable of strategic diversification and rapid adaptation to shifting trade policies. ASCM has numerous resources: 

• The Chain Podcast Tariff Predictions: I spoke with supply chain expert Alastair Charatan and ASCM’s Douglas Kent to explore the global trade landscape and how supply chain organizations can navigate the ebbs and flows of tariffs. 

• Optimizing Sourcing and Supplier Relationships in a Tariff-Risk Landscape: This four-part webinar series investigates strategic sourcing and supplier management within the critical new context of tariff mitigation.   

• ASCM’s Tariff Tracker: Stay in the loop with the latest supply chain tariff updates. Our weekly curated collection brings you the most important news from global media sources. 

• Finally, be sure to prepare your teams at CHAINge: North America, the premier educational gathering for supply chain professionals. The immersive event will take place September 9-10 in Columbus, Ohio. Register today.