The text of this client alert was updated at 5 p.m. EDT time on July 11. The chart linked below will be updated on a rolling basis.
On July 7, President Trump began sending letters to select U.S. trading partners informing them of new “reciprocal” tariff rates that will be effective Aug. 1. These letters update the rates that the recipient country was assessed on “Liberation Day,” April 2, 2025.
A White House fact sheet, published on July 7, explained that “the President may send more letters in the coming days and weeks” and “in some instances, countries will be subject to a revised reciprocal tariff rate that is lower than the rate initially announced on April 2. For others, the reciprocal tariff rate may be higher than the previous rate.” While the letters make clear that President Trump will “perhaps” consider “adjustments to this letter,” the letters take a hardline approach and imply that the updated rates will go into effect unless countries open “closed” markets.
As of July 11, 23 nations have received letters. Many of the letters include relatively minor changes to the tariff rates announced on “Liberation Day.” For example, Japan and South Korea will both be subject to a 25% tariff instead of 24% and 26%, respectively. Several countries received substantially lower rates. For example, Cambodia, Iraq, Laos and Sri Lanka’s rates were lowered by more than 8%, with Sri Lanka receiving the highest decrease from 44% to 30%. However, the letters received by these countries all contain the same language, which does not address the reasoning behind each rate adjustment.
On July 9, President Trump sent Brazil a letter stating he will dramatically increase “reciprocal” tariffs on Brazil from the 10% “baseline” to 50%, effective Aug. 1. The letter sent to Brazil differs from the others, citing concerns about the trial of former President Jair Bolsonaro, who allegedly sought to overturn the results of the 2022 presidential election, as well as recent Brazilian efforts to target U.S. technology companies.
On July 10, President Trump sent Canada a letter stating that he will impose a 35% tariff on the country effective Aug.1. This letter accuses Canada of retaliating against the 25% tariffs President Trump imposed earlier this year in response to the fentanyl crisis and imposing tariffs of 400% on U.S. dairy imports. Canada was not given a “reciprocal” tariff on “liberation Day.” Imports from Canada that are compliant with the United States-Mexico-Canada Agreement (USMCA) are currently exempt from the 25% tariff. On July 11, President Trump responded “We’re going to see” in response to a question from a reporter on whether this exemption would apply to the new 35% rate.
All of the letters, including those sent to Brazil and Canada, note that these updated “reciprocal” tariffs are “separate” from “sectoral” tariffs—almost certainly a reference to those that can be imposed after an investigation under Section 232 of the Trade Expansion Act of 1962. These “sectoral” tariffs currently apply to a range of products, including steel, aluminum and autos. The administration has launched 232 investigations into a range of other products including pharmaceuticals, semiconductors (including smartphones as “derivative products”), copper, timber and lumber, and critical minerals. Many products that are the subject of Sec. 232 investigations are currently exempt from “reciprocal” tariffs.
The “reciprocal” tariffs and the “sectoral” tariffs generally do not apply on top of each other; however, how the two tariff categories interact when applied to specific products, such as those containing steel and aluminum, can involve a detailed analysis. The Trump administration has not publicly addressed whether exemptions for “critical minerals” and other products, which are the subject of ongoing Section 232 investigations, will be applied to the updated “reciprocal” tariffs; however, maintaining this exemption would be consistent with how the Trump administration has imposed tariffs to date as well as the notion that “sectoral” and “reciprocal” tariffs are “separate.”
On July 7, President Trump signed an executive order (EO) extending the pause on “reciprocal” tariffs that was set to expire on July 9 to Aug. 1. The EO does not formally implement the updated tariff rates included in the letters discussed above. Implementing these updated rates will require additional action from the administration. As a result, most U.S. trading partners will continue to be subject to a 10% “baseline” tariff through Aug. 1, regardless of whether or not they have received a letter. Canada will remain subject to a 25% tariff with the USMCA exemption in place through this date.
The chart linked below lays out which countries have received letters, the updated tariff rate each letter contains, as well as the original rate that each country was assessed on “Liberation Day.” It also includes links to each letter as shared by President Trump on Truth Social.
Live breakdown of tariff rates, post July 7.
