The Weekly Current

Compliance

The July 9 deadline for finalizing U.S. trade agreements is quickly approaching, with much of the global tariff landscape still unresolved. Countries outside North America generally remain subject to the 10% baseline reciprocal tariff, while Canada and Mexico face a 25% tariff on non-USMCA goods. Imports from China remain subject to multiple layers of tariffs—including the 20% fentanyl tariff, the original 25% Section 301 tariff, and the 10% baseline reciprocal tariff—resulting in a combined rate of 55% on most goods. Additional tariffs remain in place for automotive, steel, and aluminum products, varying by country of origin.

Trade negotiations were a major focus at this week’s G7 Summit in Canada, where President Trump met with several world leaders ahead of the July 9 deadline. While additional agreements have yet to be announced, countries viewed by the administration as negotiating in good faith are expected to remain subject to the 10% baseline tariff, while others could face higher reciprocal rates, potentially reaching 50%.

One agreement moving forward is the United States–United Kingdom Economic Prosperity Deal, whose general terms were signed during the summit. Under the agreement, the 10% reciprocal tariff will remain in effect for UK goods, with certain commodities, including aerospace products, excluded from the tariff schedule.

The deal also outlines a potential reduction in steel tariffs. Notably, the UK was exempted from the recent 25% increase on specific steel and aluminum products and continues to negotiate tariff rates for pharmaceuticals under the Section 232 review. Additionally, the first 100,000 UK-manufactured vehicles exported to the U.S. annually will be subject to a 10% Section 232 tariff rather than the current global rate of 25%.

In return, the UK has committed to increasing imports of U.S. beef, ethanol, and other agricultural products while working to remove non-tariff barriers that have previously limited trade between the two countries.

We will continue to monitor negotiations as the July 9 deadline approaches and provide updates as additional trade agreements and tariff rates are finalized.