U.S. Gives Notice of Sweeping Tariff Hikes on August 1 Amid Stalled Trade Talks

The U.S. is threatening new tariff hikes on its top trading partners, intensifying economic uncertainty and global trade tensions.

President Donald Trump is intensifying pressure on the United States’ top trading partners—Canada, Mexico, and the European Union—with sweeping tariff threats set to take effect August 1 if new trade and security agreements are not reached.

Last Thursday, President Trump announced a 35% tariff on Canadian imports not covered by the USMCA, citing Canada’s “unacceptable failures” to curb fentanyl trafficking. A White House official, speaking on condition of anonymity, confirmed that the new tariff would target only goods not covered under the USMCA’s tariff exemptions. Medical devices, lab products, and pharmaceuticals will continue to not be tariffed since they are covered by the USMCA.

Over the weekend, the administration expanded its threats to include the European Union and Mexico. Letters from President Trump warned both trading blocs of 30% tariffs across all imports, excluding certain sectoral tariffs, such as the 25% auto tariff. In the tariff letters, Trump warned that any retaliatory tariffs on U.S. goods would be met with reciprocal increases. “Whatever the number you choose to raise [tariffs] by,” President Trump wrote, “will be added onto the 30% that we charge.” 

Together, the European Union, Mexico, and Canada accounted for the U.S.’ largest trading relationships in 2024, with total trade exceeding $2.5 trillion. That year, the EU led all U.S. trading partners with an estimated $976 billion in goods exchanged—surpassing Mexico ($840 billion), Canada ($762 billion), and China ($582 billion), according to the U.S. Trade Representative’s office.

Treasury Secretary Scott Bessent also warned last week that countries without updated trade agreements will see tariffs revert on August 1 to April 2 rates, ranging from 10% to 50%, with up to “100 smaller nations” set to receive notices.

Also over the weekend, President Trump threatened secondary sanctions of 100% countries that buy Russian oil if Russia does not reach a cease fire deal for Ukraine in the next 50 days. Secondary sanctions would mean an additional 100% tariff on countries that buy Russian oil, such as China and India, if they continue to do so after secondary sanction are put in place. Such secondary sanctions would also raise global energy prices if enacted.

The shifting deadlines and rising tariff rates have left U.S. businesses wary of mounting costs and economic uncertainty.

Healthcare executives face challenges estimating their exposure to increased costs from tariffs for their health system. There is no one-size-fits-all answer. Any health system can set up a 30-minute SRS training session on how leading health systems assess their exposure to tariffs and other risks, and the steps they take to mitigate risks proactively. Simply email SRS Support (support@supplyrisk.com) to schedule a time.

The following SRS reports can be tailored to the items you buy to assess tariff exposure for your health system:

• “Product Tariffs – Special Report” – lists tariff rates for all countries and summarizes country of origin for items you buy (run it from the Prevent dashboard).
• “Products by Country (Tariff Risk)” – choose any country to see which items you buy are manufactured there (run it from the Prevent dashboard).
• “Products All Countries (Tariff Risk)” – downloads tariff rates on all items that you buy (run it from the the Prevent dashboard).
• “Products Sites and Risks” – lists manufacturing location for all items you buy from the supplier (in the Prevent dashboard after you drill down on a supplier).

If you have not yet tailored SRS for the items you buy, it’s easy to do so with an SRS subscription.

For more information, see:

CNN, Trump announces tariffs of 30% on Mexico and the European Union, July 14

Politico, Trump says US to impose 35 percent tariff on Canadian goods, July 11

CNN, Trump threatens a 35% tariff on Canadian goods, and he may double what most other nations are charged, July 11

BBC, Trump threatens 35% tariffs on Canadian goods, July 11

Supply Risk Solutions, U.S. Gives Notice of Sweeping Tariff Hikes on August 1 Amid Stalled Trade Talks, July 7

Supply Risk Solutions, Trump Tariffs Temporarily Reinstated Amid Legal, Economic Uncertainty, June 3

Supply Risk Solutions, Court Strikes Down Trump’s IEEPA Tariffs Citing Legal Overreach, May 29

Supply Risk Solutions, U.S. Announces Major Trade Deals with UK and China, May 15

Supply Risk Solutions, Tariffs Deepen Pressure on U.S. Healthcare Supply Chains, May 7

Supply Risk Solutions, U.S. Tariffs Drives “Foreign Trade Zone” Surge, April 30

Supply Risk Solutions, U.S. Launches Tariff Probes Into Chip and Pharmaceutical Imports, April 17

Supply Risk Solutions, Supply Chains Upended by Historic Tariffs, April 3

Supply Risk Solutions, Manufacturers Plan to Pass Tariff Costs on to Their Customers, April 1

Supply Risk Solutions, Impact of Upcoming Tariffs on Healthcare Sourcing, March 11

Supply Risk Solutions, Trump’s Partial Tariff Exemptions Leave Majority of Canada-Mexico Duties in Place, March 7

Supply Risk Solutions, U.S. Tariffs on Canada and Mexico Take Effect, March 4

Supply Risk Solutions, U.S. Unveils New Tariff Plans, February 28

Supply Risk Solutions, Trump Confirms Canada and Mexico Tariffs Will Take Effect on March 4, February 25

Supply Risk Solutions, Trump Proposes 25% Tariffs on Cars, Chips, Pharma Products, February 20

Supply Risk Solutions, China Counters U.S. Tariffs with Targeted Tariffs, Export Controls, and Investigations, February 4

Supply Risk Solutions, Trump Delays Tariffs on Mexico and Canada, February 3

Supply Risk Solutions, U.S. to Impose Tariffs on Key Trading Partners Feb. 1, February 1

Supply Risk Solutions, Trump’s Tariff Policies Spark Global Uncertainty, January 27

Supply Risk Solutions, Trump Proposes 25% Tariffs on Canada and Mexico Starting February 1, January 21

Supply Risk Solutions, Tariff Planning Requires Product Transparency, January 13

Supply Risk Solutions, U.S. Tariff Plans Bring Urgency to Knowing Product Manufacturing Locations, December 2

Supply Risk Solutions, Tariffs Push Manufacturers to Rethink Supply Chain Strategies, November 15

Supply Risk Solutions, Tariffs Spur Urgency to Understand Product Manufacturing Locations, November 11

Supply Risk Solutions, List the Products You Buy That Are Subject to China Import Tariffs, October 28