Extending the Modification of the Reciprocal Tariff Rates

What it means

Extends the temporary suspension of additional tariffs on most trading partners until August 1, 2025. This continues the reduced 10% duty rate instead of higher rates, giving more time for trade negotiations. China's separate tariff arrangement remains unchanged.

Expected impact

• Provides breathing room for ongoing trade negotiations with international partners
• Maintains pressure on trading partners to address U.S. trade deficit concerns while showing good faith
• Signals continued U.S. willingness to work diplomatically on trade issues before implementing higher tariffs
• May temporarily reduce uncertainty for businesses involved in international trade
• Potentially allows more time for supply chains to adjust if higher tariffs eventually take effect