The BR International Trade Report: August 2025

Recent Developments

Tariff developments

U.S.-China trade truce extended an additional 90 days.

On August 11, President Trump signed an executive order (“EO”) extending the tariff pause between the two countries, initially declared in May, until November 9. The pause provides more time for the world’s two largest economies to reach a trade deal, avoiding reimposition of currently suspended tariffs of 145 percent by the United States and 125 percent by China.

Updated reciprocal tariffs take effect.

On August 7, the United States imposed new, country-specific tariffs on products imported into the United States from 74 trading partners. In many instances, the new rates are lower than those announced on the April 2 “Liberation Day,” although in some cases the rates are higher. EO 14326, which authorized the updated tariff rates, also implemented an additional 40 percent duty rate on articles deemed to be transshipped through a third country in an effort to disincentivize tariff circumvention. For additional information, please see Blank Rome’s August 6, client alert.

Tariff exemption for low-value (de minimis) imports to end on August 29.

On July 30, President Trump signed EO 14324, suspending duty-free treatment for de minimis imports (i.e., shipments valued at $800 or less). Beginning August 29, transportation carriers must collect and remit duties to U.S. Customs and Border Protection (“CBP”) by either (i) calculating the applicable duty for each package based on the country-specific tariff rate or (ii) through February 2026, imposing a pre-determined flat rate of $80, $160, or $200 per item.

President Trump announces 50 percent tariff on imports of copper.

On July 30, President Trump signed Proclamation 10962, imposing a 50 percent tariff on semi-finished and intensive copper derivative products, such as copper wire, imported into the United States. The proclamation follows the Section 232 investigation conducted by the U.S. Department of Commerce’s Bureau of Industry and Security (“BIS”). The additional 50 percent duties apply only to the value of copper content in the relevant products. Notably, refined copper metal is outside the scope of the tariffs, a contrast from the duties on steel and aluminum, where the tariffs applied to all steel and aluminum articles and derivatives.

Imports from Brazil and India subject to additional tariffs.

Citing Brazil’s prosecution of former President Jair Bolsonaro, in addition to online censorship, President Trump announced 50 percent tariffs on imports of Brazilian goods. Many goods, such as aircraft, steel, and petroleum products, will be exempt from the additional tariffs pursuant to Annex I of the EO.

• India, following the breakdown of negotiations between Washington and New Delhi, will be hit not only with 25 percent “reciprocal” tariffs, but an additional 25 percent due to its imports of Russian oil, bringing its total rate to 50 percent.

• Japan tariffs will not be “stacked” on top of existing rates.

• After agreeing to a trade deal framework that included a 15 percent tariff rate on Japanese goods, there was an initial lack of clarity around whether the 15 percent tariffs would be in addition to existing most favored nation rates. According to the Japanese government, the two sides have verbally agreed to clarify this point, with the understanding that the 15 percent tariff would not be added to existing duties. Foreign Affairs Minister Iwaya stated at an August 8, 2025, press conference that the United States has agreed to issue appropriate revisions to implement this understanding, as well as to reduce the Section 232s automobile tariffs from 25 percent to 15 percent. 

Trump Administration reportedly authorizes certain chip exports to China in exchange for revenue sharing.

According to reports, BIS reportedly is issuing licenses to NVIDIA Corporation and Advanced Micro Devices, Inc. authorizing export to China of the respective companies’ H20 and MI308 chips, and as part of this arrangement, the companies will share 15 percent of the revenue generated from such sales with the U.S. government. This development follows restrictions on the export of such chips that U.S. authorities imposed in April 2025.

Trump Administration continues its focus on semiconductor imports and exports.

• In early August, President Trump previewed that the United States plans to “put[] a tariff of approximately 100 percent on chips and semiconductors,” potentially in pursuant to BIS’s Section 232 investigation into semiconductors.

• The tariff announcement comes as the administration seeks to reinforce control of exports of advanced chips to China. As part of this effort, Science Advisor to the President Michael Kratsios explained that the United States has been exploring how to better track the chips, including by adding software or making physical changes to the chips. Along these lines, a report indicates that U.S. authorities have been adding location trackers in shipments of advanced chips to prevent unlawful diversion.

Trump Administration may set price support for critical minerals.

In a bid to strengthen domestic supply chains and reduce dependence on China, the administration is considering expanding Pentagon-backed price supports for U.S. rare earths projects. The move comes as U.S. defense companies report supply shortages, amidst China tightening export restrictions on rare earth minerals bound for Western defense customers. 

Beijing announces artificial intelligence (“AI”) action plan.

In late July, China’s Ministry of Foreign Affairs released its Global AI Governance Action Plan, highlighting global governance through the United Nations and expansion to the Global South. China’s plan is in contrast to the Trump Administration’s recently issued AI Action Plan, which focuses on cooperation with U.S. allies and partners and countering Chinese influence. 

Egypt and Israel agree to gas deal.

Expanding on a 2018 agreement, Egypt and Israel have agreed to a new $35 billion deal, the largest export deal in Israel’s history. The deal, which will require additional infrastructure such as pipelines between the two countries, is intended to resolve Egypt’s rolling blackouts and reliance on expensive liquified natural gas (“LNG”) imports. 

For continuous, up-to-date information on the evolving administrative landscape, check out Blank Rome’s Trump Administration Resource Hub. Explore previous BR International Trade Reports here.