Reciprocal Tariff Update #11

New Agreements with Latin American Partners

*Updates from Rafe Morrissey, Morrissey Strategic Partners, LLC & Craig Brightup, The Brightup Group, LLC

The administration confirmed fresh trade deals with several Latin American countries—including Argentina, El Salvador, Ecuador, and Guatemala—aimed at easing tariff tensions. On Friday, the President issued an executive order eliminating reciprocal tariffs on a range of agricultural products such as coffee and bananas that cannot be grown in the U.S. (Fact Sheet)

Brazil Negotiations Gain Speed

Brazil, currently facing steep 50% tariffs on its exports, has also moved to the center of trade diplomacy. Senator Marco Rubio met with Brazil’s foreign minister during last week’s G7 meetings in Toronto, with follow-up discussions continuing in Washington, D.C. Both parties have expressed confidence that they will resolve the negotiations within the next two weeks. Brazil is actively looking to suspend tariffs while seeking common ground with the U.S.

Political Pressure Driving a New Trade Approach

All of this reflects a change in approach based on the outcome of the off-year elections and growing voter concerns over affordability and the mid-term elections next year. Reports indicate that major retailers are beginning to implement anticipated fourth-quarter price increases on products, including pet goods.  While the Supreme Court prepares to review IEEPA-related tariffs, it appears the White House is increasingly willing to pursue mitigation unilaterally, recognizing the economic and political pressures at play.

China Remains a Wild Card

However, not all trade relationships show the same signs of progress. The U.S.–China dynamic remains volatile, even as the administration works to uphold commitments from the recent Xi–Trump agreement in Asia. New USDA reporting indicates that China has so far failed to fulfill its commitments to purchase U.S. soybeans and grant full access to rare earth minerals. The Section 301 investigation into China’s compliance with the Phase I agreement from the first Trump term remains open. 

The Stakes for Importers and Producers

 Morrissey Strategic Partners, LLC & The Brightup Group, LLC provides guidance on how transportation, customs, or other government regulations may affect the Client’s business.

PTC is not a law firm, does not practice law, and does not provide legal advice. The Client should consult legal counsel for any legal matters, including trade compliance.

The Importer of Record (IOR) is responsible for complying with customs regulations and managing the import process. This includes obtaining required licenses and permits, classifying and valuing goods correctly, declaring goods accurately, paying duties and taxes, following import rules, and maintaining proper records.