The tariff landscape continues to evolve rapidly since our last update in April. Here’s what’s changed—and what it could mean for your business:
• US-China Tariff De-escalation: On May 12, the U.S. and China announced a significant step back from their trade war. A mutual agreement has reduced tariffs imposed since April 2 by 115% on both sides, restoring a 10% base rate. China has also agreed to eliminate certain non-tariff countermeasures, and a 90-day bilateral trade dialogue is now underway.
• EU in the Hot Seat: As tensions ease with China, the European Union has become the new focus of U.S. trade policy. The 25% levy on EU steel and aluminum remains, while an additional 50% tariff on a broad range of EU goods—from luxury cars to consumer products—could come into effect July 9 if no deal is reached.
• Fast-Tracked Transatlantic Talks: In response, the EU has accelerated negotiations with the U.S., with Trade Commissioner Maroš Šefčovič leading the charge. Talks are centered on critical sectors including automobiles, semiconductors, aluminum, and pharmaceuticals in hopes of averting new tariffs.
• India’s Mixed Message: India is seeking tariff relief, but simultaneously holding firm on high duties for agricultural imports such as dairy and food grains—indicating a more protectionist stance in select sectors.
• Apple Under Pressure: The Trump administration has taken a pointed stance toward Apple, warning of a 25% tariff on iPhones if the company does not move production to the U.S., highlighting growing pressure on high-profile tech firms to reshore manufacturing.
Zinyah Robison, Law Clerk, Charlotte, NC
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