As the Aug. 1, 2025, end date for President Donald Trump's most recent suspension of country-specific reciprocal tariffs approaches, stakeholders should consider where ongoing bilateral negotiations stand, what the potential outcomes may be and how the shifting trade and tariff dynamics could impact their supply chains and businesses. Holland & Knight's Tariff Task Force continues to monitor the bilateral trade talks, and this alert provides an update on the status of the 18 ongoing negotiations as of July 22, 2025.
Background: Global Reciprocal Tariffs
On April 2, 2025, President Trump announced "reciprocal" tariffs on imports of goods from every U.S. trading partner, throwing U.S. bilateral trade relations into a state of flux. The reciprocal tariffs, which were imposed under the International Emergency Economic Powers Act (IEEPA), set a 10 percent baseline tariff on all imports into the U.S. from nearly all countries and higher, country-specific reciprocal tariffs calculated based on bilateral trade deficits.
The Trump Administration announced a 90-day pause on nearly all of the country-specific reciprocal tariffs on April 9, 2025, reducing these tariffs to the 10 percent baseline while the U.S. and its trading partners negotiated new bilateral trade agreements. This pause was initially set to expire on July 9, 2025, but was extended to Aug. 1, 2025, providing additional time to finalize deals with key partners.
Beginning July 7, 2025, President Trump issued formal letters to more than 20 countries outlining the tariff rates that would take effect on Aug. 1, 2025, absent a bilateral agreement. Though most letters mirrored the rates initially announced on April 2, 2025, several countries received revised tariff levels. For example, Brazil received a 50 percent reciprocal tariff rate, citing not only trade barriers but also political concerns related to the treatment of former President Jair Bolsonaro. Canada was assigned a 35 percent reciprocal rate, with its letter referencing long-standing agricultural trade issues and a lack of sufficient cross-border fentanyl enforcement.
Status of Bilateral Trade Negotiations
The U.S. Department of the Treasury, U.S. Department of Commerce and Office of the U.S. Trade Representative (USTR) have been tasked with leading specific bilateral trade negotiations, which, according to media reports, have progressed with several trading partners, although few details have been released.
The chart below highlights the most recent public reporting on the 18 ongoing bilateral trade negotiations identified by Holland & Knight.
Takeaways
- With less than two weeks until the Aug. 1, 2025, deadline, the U.S. has announced deals with China, Indonesia, Vietnam and the U.K. (although Vietnam has not confirmed this deal). Commerce Secretary Lutnick recently stated that the U.S. is in the final stages of trade negotiations with many countries and expects to finalize more deals that will avoid significant tariff hikes by Aug. 1, 2025.
- The Aug. 1, 2025, deadline is the second time the Trump Administration has announced a delay on tariffs to allow additional time for negotiations. Holland & Knight will monitor whether this pattern continues or if the administration will implement the tariffs on Aug. 1, 2025, as planned.
- The unclear legal status of the reciprocal tariffs creates an additional layer of tariff uncertainty. Two recent federal court rulings struck down the reciprocal tariffs, holding that these measures exceed the president's authority under IEEPA. However, the tariffs remain in place for now as appellate courts hear appeals filed by the administration. Ultimately, the U.S. Supreme Court may decide the legality of the reciprocal tariffs.
- Separately, the Commerce Department is moving forward with an array of sector-specific Section 232 investigations. Many countries are eager to negotiate for relief from existing or future Section 232 tariffs during bilateral negotiations with the Trump Administration. It unclear what forms of relief the Trump Administration may offer in any deals with respect to Section 232 tariffs already in place (i.e., steel, aluminum and autos) or with investigations pending (semiconductors, solar panel components, light trucks, copper, pharmaceuticals and timber/lumber/derivatives).
- As Holland & Knight previously noted, given all these sources of uncertainty, stakeholders should prepare for market and supply chain volatility and strategize for a variety of potential outcomes.
