United States President Donald Trump‘s reciprocal tariff rates began to trickle out on Monday, with the president notifying the leaders of Japan and Korea that they will face 25 per cent tariffs, while Myanmar and Laos will face 40 per cent levies. Trump also warned that countries that aligned with BRICS policies could face an additional 10 per cent tariff. With several deadlines looming, here’s a closer look at the state of U.S. tariffs and what they mean for Canada.

What is supposed to happen on July 9?

A 90-day pause on Trump’s “Liberation Day” reciprocal tariffs was originally set to expire on Wednesday, July 9, but that has now been pushed to Aug. 1. As noted by the White House on Monday, that will give countries more time to potentially reach deals.

On April 2, the president had announced sweeping reciprocal tariffs on American trade partners including a 20 per cent tariff on the European Union. But a week later, after global financial markets panicked, Trump announced he would pause the levies, instead opting to keep a 10 per cent baseline tariff on

trade partners

while his administration began the process of working out deals with each country with a deadline of July 9.

Later on Monday, the president signed an executive order delaying the tariffs from July 9 to Aug. 1.

So far, Trump has published letters to over a dozen countries, including Korea, Japan, Malaysia and Kazakhstan, threatening 25 per cent tariffs on products from those countries entering the U.S. starting Aug. 1, separate from sectoral tariffs already in place.

A letter sent to South Africa threatens a 30 per cent tariff, while letters to Laos and Myanmar threaten 40 per cent tariffs.

The letters indicated that the U.S. administration is prepared to adjust the tariffs, if countries are willing to eliminate what the U.S. views as trade barriers facing American companies.

“These tariffs may be modified upward or downward, depending on the relationship with your country,” the letters said.

Trump also warned there will be no further extensions granted after Aug. 1, according to a post on Truth Social.

On Sunday, Trump also threatened an additional 10 per cent tariff on any country that aligns itself with the policies of the BRICS, an intergovernmental organization that is comprised of 10 member countries which include Brazil, Russia, India, China, South Africa, Egypt, Ethiopia, Indonesia, Iran and the United Arab Emirates.

How many deals has the U.S. made so far?

The U.S. administration has reached trade deals with the United Kingdom, Vietnam and China. The content of those deals can provide some foresight into what countries should expect.

Trump announced his first agreement under the reciprocal tariff regime with the U.K. in early May, and the terms of the deal took effect on June 30.

The agreement included slashing U.S. tariffs on British autos to 10 per cent on the first 100,000 vehicles exported and the removal of tariffs for the British aerospace sector.

Like the U.K., Vietnam will also still face tariffs despite reaching a deal with the U.S. Under the agreement, which was announced last week, Vietnamese exports to the U.S. will face 20 per cent tariffs, instead of the 46 per cent levy previously announced by Trump in April. However, the U.S. will impose a 40 per cent tariff on “transshipped” goods, which are goods that originate

from another country that stop in Vietnam on their way to the U.S. 

The U.S. also reached a deal with China, although details are scarce. On June 26, Trump said a deal with China had been “signed the other day.” U.S. Treasury Secretary Scott Bessent confirmed on Fox News that the deal will make it easier for American firms to get Chinese rare earths in exchange for the lowering of tariffs on Chinese goods. The deal followed a “framework” that was agreed to last month between the two countries, which brought U.S. tariffs on Chinese goods down to 30 per cent and Chinese tariffs on U.S. goods down to 10 per cent.

The White House Council of Economic Advisers chair Stephen Miran told ABC News on Sunday that he expects a number of new trade deals by the end of the week, including with the European Union.

The EU’s trade spokesperson, Olof Gill, confirmed on Monday that the commission was still working towards securing an agreement with the U.S. by Wednesday.

Other deals are in the works with India, Thailand, Japan and South Korea.

Where do things stand with Canada?

Canada and Mexico escaped reciprocal tariffs levied by Trump in April, but sectoral tariffs remain in place for both countries including a 25 per cent tariff on autos and a 50 per cent tariff on steel and aluminum.

Both countries can also avoid the 25 per cent blanket tariffs on Canadian and Mexican goods entering the U.S., if the exports are compliant with the Canada-United-States-Mexico Agreement (

CUSMA

).

The Canadian federal government and the U.S. administration have been in talks to reach a new economic and security deal since Prime Minister Mark Carney took office in early May. Both governments set a deadline of July 21 to reach a deal.

The negotiation process has been rocky, with Trump announcing the end to trade talks “effective immediately” on June 27 after Canada was set to collect its first payments from American tech giants under its

digital sales tax (DST)

. In response, Canada announced on June 29 that it would rescind the DST “in anticipation of a mutually beneficial comprehensive trade arrangement with the United States.”

Trump has also objected to Canada’s supply management system, which could be another sore spot in ongoing negotiations. The system co-ordinates production and demand for five Canadian farming products, including dairy, chicken and turkey products, table eggs and broiler hatching eggs, has long been a trade irritant for the U.S. and other countries Canada trades with.

Small concessions on supply management have been made in three of Canada’s last trade deals. But that may no longer be possible, because the House of Commons and the Senate recently passed Bill C-202, legislation sponsored by the Bloc Québécois that protects the system from any concessions in future trade negotiations.

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Carney has said if a deal is not reached by July 21, Canada will adjust its counter-tariffs on American steel and aluminum products “consistent” with the progress made during the trade negotiation with the U.S.

• Email: jgowling@postmedia.com