US Updates Tariff Rates for Eight Countries in Latest Round of Tariff Letters

On July 9, President Trump took to social media to announce updated tariffs targeting eight countries, which will come into effect on August 1. The news follows the announcement two days earlier of revised tariffs against 14 countries and the extension of the postponement of country-specific reciprocal tariffs, until August 1.

The revised tariff rates range from 20% to 50%. As with the previously announced duties, the updated rates include hikes for some countries as compared to the “Liberation Day” tariffs and reductions for others.

While most of the adjusted rates are broadly in line with the “Liberation Day” tariffs, Brazil’s tariff represents a sharp increase. In his letter announcing the revised Brazil tariff, President Trump decries the ongoing prosecution of former Brazilian President Jair Bolsonaro, who has been indicted for alleged corruption. President Trump seizes on the prosecution to justify the steep tariffs. The letter also refers to “Brazil’s continued attacks on the Digital Trade activities of American Companies” and indicates that the United States Trade Representative will initiate an investigation of Brazil under Section 301 of the Trade Act.

Also in common with the earlier round of tariff revisions, the announcements urge the subject countries to “eliminate [their] Tariff, and Non Tariff, Policies and Trade Barriers” and promise that if they do so, “[the U.S.] will, perhaps, consider an adjustment to this letter.”  Additionally, the announcements threaten adjustments to the announced rates if the country takes retaliatory measures.

The postponement had been due to expire on July 9 but was extended by an Executive Order until 12:01 AM on August 1. In the interim, the baseline tariff for reciprocal tariff rate for nearly all countries sits at 10%.