511 - Market Update Q3 2025

Summary: Key Updates – U.S. Tariffs

As of August 1, the U.S. imposed widespread import tariffs of up to 50%, significantly impacting material costs and sourcing decisions across industries, especially for products from Canada, India, Brazil, and others.

As of August 01, 2025, the U.S. has implemented sweeping new import tariffs ranging from 10% to 41% across more than 60 countries, raising the average duty rate from roughly 2.3% to about 18%, the highest in nearly a century. Major trade partners such as Canada (35%), India (50%), and Brazil (50%) face the steepest increases, while countries like Thailand and Vietnam negotiated lower rates of 19% and 20%, respectively. These tariffs are already driving up costs for materials like aluminum, steel, and plastics, with broad implications for supply chains and sourcing strategies. (AP News) • A universal 10% baseline tariff now applies to most imports except from China, Hong Kong, Macau, Canada, and Mexico. • Affected partners include the EU, Japan, South Korea, Thailand, Vietnam, and others, facing tariffs ranging from 15% to 50%. • Canada faces 35% on non-USMCA compliant goods. Brazil faces 50%, and several Southeast Asian and Eastern European countries now exceed 30%. • Tariff percentages are subject to change . For ongoing updates and the latest information, please visit ACR News. Sector-Specific and Policy Notes • Steel and Aluminum: These remain under a standing 50% duty under Section 232 since April 2025. • Automobiles and Auto Parts: These continue to incur 25% tariffs regardless of country of origin. • De Minimis Exemption Removed: Goods under $800 from China, Hong Kong, and Macau are no longer duty-free. All shipments from these regions are now fully taxed. • Rollout Timing: Several increases originally delayed are now live as of August 1. India and a few others will see implementation by August 7.

Countries & Territories

Reciprocal Tariff, Adjusted

20%

Bangladesh

19%

Cambodia

55%

China

European Union: Goods with Column 1 Duty Rate [1] > 15% European Union: Goods with Column 1 Duty Rate [1] < 15%

0%

15% (minus Column 1 Duty Rate)

50% (As of 08/06/2025)

India

19% 15% 19% 19% 19% 20% 20% 19% 15%

Indonesia

Japan

Malaysia

Pakistan

Philippines

Sri Lanka

Taiwan

Thailand

Turkey

20% *Not an exhaustive list of all countries with increased tariffs

Vietnam

Note: Countries not listed still face the general 10% baseline unless specified in USTR notices or Section 232 rulings.

Q3 2025 Market Update

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