Alliance Corridor Trade News

August 14, 2025

From Beijing to Bangalore, tariffs are setting the tempo. China’s making “significant steps” to address U.S. concerns, while India braces for a fresh 25% duty and Japan gets a rare refund deal as 15% tariffs are folded into MFN rates. At home, Apple’s dropping a cool $100B to lure suppliers stateside, retailers are leaning on AI and early buying to dodge costs, and pharma imports face a “small start” before ballooning to 250%. The WTO is cheering a surge in U.S. imports ahead of the next tariff wave, but the mood is still very much “new normal” for manufacturers and buyers alike. And just to keep things spicy, a 100% chip tariff is now on the board, and U.S. lawmakers are eyeing Canada’s streaming law for a trade-pressure rewrite. Buckle up — the tariff train’s picking up speed. - JR

Provided by: JR Holcomb, Director of Foreign Trade Operations, Alliance Corridor, Inc.

Trump tariff order: China taking ‘significant steps’ to address U.S. concerns

President Trump announced a 90-day delay in planned tariff hikes on Chinese goods, citing significant progress by China in addressing U.S. economic and national security concerns. In an executive order signed Monday, the White House noted ongoing talks aimed at improving trade reciprocity and resolving key issues, with Trump saying Beijing has taken “meaningful steps” toward U.S. priorities. The suspension will last until November 10, 2025, giving negotiators more time to finalize a deal. Trump has said the U.S. and China are close to an agreement and is expected to meet Chinese President Xi Jinping beforehand. Xi has invited Trump to visit China in September, and a potential meeting could also occur during the ASEAN summit in Malaysia in October. The White House has not confirmed Trump’s attendance at either event.

Ways & Means Republicans: U.S. must pressure Canada to rescind streaming law

Nearly 20 House Ways & Means Committee Republicans are urging U.S. trade officials to push for the repeal of Canada’s Online Streaming Act during ongoing bilateral negotiations, arguing it discriminates against American companies and violates USMCA commitments. Passed in 2023, the law will require foreign streaming platforms like Netflix, YouTube, and Spotify to contribute 5% of their Canadian revenues to domestic content funds and potentially meet further Canadian content spending requirements once fully implemented in 2025. The lawmakers warn these obligations will harm U.S. artists, restrict consumer choice, and create unfair market conditions, citing the streaming industry’s significant economic impact on the U.S. They point to Canada’s recent decision to rescind its Digital Services Tax under U.S. pressure as proof similar leverage could work for the streaming law. Revenue from video-on-demand and music streaming services totaled over $84 billion in 2023, with each streaming dollar generating $1.65 in broader economic gains. Canada maintains the law complies with trade obligations and does not discriminate, but USTR has flagged it as a trade barrier in its 2025 National Trade Estimate report. Lawmakers insist that dismantling such digital trade “irritants” should be a priority in U.S.-Canada talks.

Retail buyers are reacting to tariffs with AI and early orders

Deloitte’s latest holiday survey shows retailers are bracing for uncertainty in the evolving trade environment, with 20% pausing shipments and 18% canceling unprofitable orders. Nearly half plan to source from new vendors, while others aim to negotiate better supplier terms or increase domestic sourcing, echoing moves by major retailers like Target and Best Buy to diversify beyond China. The survey also reveals that 76% of retail buyers expect consumers to purchase discretionary goods mainly during promotional periods, reflecting heightened price sensitivity. A June Deloitte report found consumers plan to spend 40–50% less on discretionary goods this year. Supporting this, Inmar Intelligence’s July forecast shows 82% of shoppers intend to cut back on groceries and essentials to fund holiday gifts. Together, the findings point to a holiday season shaped by tariff-driven supply chain shifts and a heavily promotion-dependent consumer market.

WTO boosts trade outlook, citing U.S. import ‘surge’ ahead of new tariffs

The World Trade Organization has revised its 2025 global goods trade growth forecast to 0.9%, up from an April projection of a 0.2% decline, largely due to a surge in U.S. imports early this year. The WTO attributed the increase to frontloading—particularly an 11% year-over-year jump in U.S. imports in the first half of 2025—driven by fears of higher tariffs, though it warned this will likely depress demand later. While a stronger macroeconomic outlook, a weaker U.S. dollar, and lower oil prices are supporting trade, recent U.S. tariff hikes—raising the trade-weighted average tariff to 20.11%—are expected to weigh on global trade in late 2025 and 2026. WTO Director-General Ngozi Okonjo-Iweala said trade has shown resilience but cautioned that the full impact of tariffs is still unfolding, urging members to avoid damaging retaliation. She noted that 74% of global trade still operates under WTO most-favored-nation terms and framed the current disruption as a chance for deep reforms ahead of the March 2026 ministerial in Cameroon. Regionally, Asia remains the largest positive driver of trade growth, while North America and Europe’s contributions have weakened, and energy-exporting regions face slower growth due to falling oil revenues. The WTO said U.S. trade policies under Trump, which bypass MFN rules in favor of bilateral deals, are accelerating calls for reform of the multilateral trading system.

Japan: U.S. will make 15 percent tariff ‘inclusive’ with MFN rates, issue refunds

The U.S. has agreed to revise its new 15% tariffs on Japan so they are inclusive of most-favored nation (MFN) rates rather than additive, lowering costs and triggering refunds for excess payments since the duties began on Aug. 7. The change, secured by Japan’s chief trade negotiator Ryosei Akazawa, aligns Japan’s treatment with that of the EU and corrects what both sides called an “administrative error” in President Trump’s July 31 executive order. It will also reduce tariffs on Japanese autos and parts from 25% to 15%, a key win for Japan’s politically vital vehicle sector. While some public disagreement remains over elements of a broader U.S.-Japan trade deal, Japanese officials emphasized the tariff issue was procedural, not a policy dispute. The U.S. will implement the revisions promptly and issue refunds retroactively, though no timeline was given. Japan sought these changes to avoid losing competitiveness compared to EU exporters, and the resolution is expected to ease trade tensions.

Apple adds $100B to manufacturing pledge, aims to draw suppliers to US

Apple is ramping up its U.S. manufacturing presence through its new American Manufacturing Program (AMP), adding to the $500 billion investment announced in February. The initiative includes a new Houston factory for AI servers set to begin mass production in 2026, a $2.5 billion commitment to produce all iPhone and Apple Watch cover glass at Corning’s Kentucky plant, and partnerships with major U.S. semiconductor and component makers like Texas Instruments, GlobalFoundries, and Broadcom to build an end-to-end domestic silicon supply chain. Taiwan Semiconductor Manufacturing Co., Apple’s largest supplier, has pledged $165 billion to expand U.S. chip production, and Apple is expanding data centers in North Carolina, Iowa, Nevada, and Oregon, as well as building a second Austin campus. While much of the component manufacturing will shift to the U.S., final assembly will still occur overseas due to specialized tooling expertise concentrated in places like China. The investment comes despite Apple facing significant tariff costs—about $800 million in Q3 and an expected $1.1 billion in Q4—and amid Trump’s planned 100% tariff on imported semiconductors, from which U.S.-based production will be exempt. Apple also plans to open the Apple Manufacturing Academy with Michigan State University to help smaller manufacturers upgrade their capabilities, signaling a broader push to strengthen U.S. manufacturing for critical tech components.

Trump’s latest tariffs part of ‘new normal’ for retailers, manufacturers

U.S. retailers, manufacturers, and restaurants are bracing for higher costs as the Trump administration’s new country-specific tariffs take effect Aug. 7, prompting warnings of price hikes and calls for exemptions. While some large companies like Home Depot and Costco say they will try to avoid passing costs to consumers, others, including Stanley Black & Decker, have already raised prices, and industry groups warn more increases are likely. The National Retail Federation and National Restaurant Association argue that the tariffs, particularly on food imports from key suppliers like Canada, Brazil, and the EU, will burden consumers and threaten jobs, with restaurants potentially facing billions in added costs. Restaurants are pushing for exemptions, especially for USMCA-compliant goods, which are currently spared from tariffs with Canada and Mexico. Businesses are also reworking supply chains to manage tariff volatility, prioritizing geopolitical stability and cost efficiency, though smaller retailers face steeper challenges adapting. Trade experts note that the clarity provided by the White House helps with planning, but many sectors still fear the long-term impact on hiring, investment, and innovation. The tariff pressure could intensify as the administration pursues further trade negotiations and Section 232 investigations into pharmaceuticals and semiconductors.

Trump: 100 percent tariff on chips, more secondary tariffs coming

President Trump announced a 100% tariff on imported semiconductors, citing national security concerns under a Section 232 investigation. The tariff will not apply to companies building or manufacturing chips in the U.S., with Trump emphasizing that commitments to domestic production will exempt firms like Apple and others already investing. The move aligns with a broader tariff regime taking effect Thursday, which includes new duties on numerous U.S. trading partners. The EU, however, will face a lower 15% rate under a separate agreement. Trump also signaled possible future tariffs on countries continuing to import Russian oil, including China, and has already imposed additional tariffs on India for this reason. He warned of more secondary sanctions in the coming days. Secretary of State Marco Rubio confirmed that decisions on further penalties will be made within 24 to 36 hours, depending on the outcome of ongoing negotiations.

US to levy another 25% tariff on India imports

President Trump announced an additional 25% tariff on imports from India, set to begin August 27, stacking on top of the 25% duty announced last week. The new tariff targets India’s continued imports of Russian oil, which Trump says supports Russia’s war efforts. Goods already in final transit before August 27 will have until September 17 before the tariff applies. The order allows further tariffs on other countries found to be importing Russian oil. India’s government pushed back, calling the move “unjustified and unreasonable,” citing its need for affordable energy. Despite recent U.S.-India trade talks, no deal has been reached, unlike with partners such as the EU and Japan. In 2024, the U.S. imported $87 billion in goods from India and exported $42 billion.

Trump: Pharma tariffs will start ‘small,’ rise to 250 percent

In a wide-ranging interview, President Trump said the U.S. will begin imposing national security tariffs on pharmaceuticals at a low rate that could rise to 250% within 18 months to encourage domestic production. He also expressed optimism about a pending trade deal with China, saying a meeting with President Xi could occur by year-end if an agreement is reached. Trump confirmed upcoming tariff increases on India over its continued purchases of Russian oil, with rates potentially exceeding the 25% already announced. He criticized Switzerland for not offering fair trade terms and defended plans to impose a 39% tariff on Swiss exports. Trump also touted deals with the EU and Japan, claiming the EU would “give” the U.S. $600 billion in investment—with no repayment—though EU officials described it as an estimate of potential private-sector investment. If such investments don’t materialize, Trump said the U.S. would raise EU tariffs to 35%. Formal announcements on pharmaceutical and semiconductor tariffs are expected soon.


Related posts
Building Partnerships Through Workforce Development 

Talent and workforce remain key areas of focus for the FWC. At a recent North Area Council networking event and school supply drive hosted by Texas AirSystems, we learned that the company has created its own university.  Texas AirSystems University (TASU) was born from the company’s commitment to creating and providing solutions that help customers […]

Read More
Help Us Empower Fort Worth’s Small Businesses: Share the Free SizeUp Tool With Your Network 

What is SizeUp and Why It Matters  Fort Worth’s small business community is growing—and with that growth comes the need for smart, data-driven decisions. That’s why the Fort Worth Chamber is proud to offer SizeUp, a powerful, easy-to-use platform that gives entrepreneurs access to the kind of business intelligence normally reserved for large corporations.  Best […]

Read More
1 2 3 7
777 Taylor St Suite 900
Fort Worth, TX 76102
licensephone-handsetcalendar-fulltabletmenuThe owner of this website has made a commitment to accessibility and inclusion, please report any problems that you encounter using the contact form on this website. This site uses the WP ADA Compliance Check plugin to enhance accessibility. linkedin facebook pinterest youtube rss twitter instagram facebook-blank rss-blank linkedin-blank pinterest youtube twitter instagram