Tariffs Briefing VI
JULY 17, 2025 - EVOLVING NEGOTIATIONS AND GEORGIA’S TRADE ENVIRONMENT
GEORGIA CHAMBER OF COMMERCE
Overview
Recent developments in global trade policy are reshaping the landscape for Georgia businesses. In the wake of newly signed trade agreements and adjustments to tariff schedules, companies across the state are evaluating the implications for their business operations. This update outlines the key agreements signed since June, the tariffs expected to go into effect in August, and highlights the trade impact of Georgia’s top international trading partners, with an emphasis on opportunities and risks stemming from these changes.
Where We Stand
As of July 9th, the Trump Administration sent letters to 20 countries, including some of Georgia’s most critical trading partners like Japan and South Korea, notifying them that unless new trade deals are finalized by August 1st, their exports will face steep tariffs. Tariff notice letters continue to be released daily, with possible letters to the European Union and others planned.
On July 8th, President Trump announced a 50% tariff on copper imports, expected to be put in place by the end of July, increasing copper market prices by 13.12%. President Trump additionally threatened to impose 200% tariffs on pharmaceutical imports. This is significant because pharmaceuticals make up some of Georgia’s top imports and exports.
Existing Trade Negotiations
UNITED KINGDOM
STATUS: AUTHORIZED BY EXECUTIVE ORDER
While general terms from the initial agreement continue to be negotiated, and the general tariff on U.K. imports remains at 10%, the President has authorized by executive order specific carve outs for the automobile and aerospace industries.
The executive order sets a 10% tariff quota of 100,000 automobile imports from the U.K., reduced from the standard global 25% tariff imposed on automobile imports. Auto parts produced in the U.K. for U.K.-made vehicles will also face 10% tariffs.
Aerospace products for civil aircraft, such as jet engines, are exempted from tariffs.
The executive order pledges to establish a tariff-rate quota system for metal products and derivative metal-using products at a future time. Currently, imported steel and aluminum products are tariffed at a rate of 50%. There is no timeline for the implementation of the quota system.
VIETNAM
STATUS: ANNOUNCED TRADE AGREEMENT
The announced agreement imposes a 20% tariff on all imports from Vietnam and no tariffs on any exports from the United States to Vietnam.
Additionally, a 40% tariff will be imposed on any “transshipping” passing through Vietnam. This would apply to countries that move goods through Vietnam to bypass U.S. tariffs. In 2024, Georgia imported $6.7 billion worth of goods from Vietnam, making it Georgia’s fifth largest import market.
BRAZIL
STATUS: TARIFF TERMS DETAILED IN LETTER
On the evening of July 9th, President Trump announced a 50% tariff rate on imports from Brazil, citing potential unfair trade practices, the ongoing prosecution of Brazil’s former president Jair Bolsonaro for an alleged coup, and referencing a recent Brazilian Supreme Court ruling that could hold social media platforms liable for user content. The United States has a trade surplus with Brazil, which totaled $7.4 billion in 2024. Brazilian President Luiz Inacio Lula da Silva said that Brazil will respond with proportional countermeasures.
JAPAN AND SOUTH KOREA
STATUS: TARIFF TERMS DETAILED IN LETTER
Despite ongoing negotiations with both countries, President Trump informed both Japan and South Korea that the United States would be imposing a 25% tariff on imports from these countries. Japan and South Korea represent a 4.5% and 4.0% share of U.S. imports, respectively. Georgia is home to the Japan External Trade Organization, with formalized, bilateral trade partnerships established for more than 50 years. South Korea is Georgia’s third largest trade partner, with $17.5 billion worth of goods traded between Georgia and South Korea in 2024.
EUROPEAN UNION
STATUS: TARIFF TERMS DETAILED IN LETTER
On Saturday, July 11th, President Trump announced that imports from European Union member states will face a 30% tariff starting August 1st. European Union member states are some of the most significant trade partners for Georgia. In 2024, Germany was Georgia’s fourth largest trade partner, with that relationship worth $14.3 billion. The European Commission president, Ursula von der Leyen, responded that they will continue to work towards a trade agreement by August 1st, but are prepared to respond with proportionate countermeasures.
CANADA
STATUS: TARIFF TERMS DETAILED IN LETTER
President Trump announced that tariffs on Canadian imports will be set to 35% beginning August 1st. The new tariffs will likely exempt USMCA compliant goods. The United States imports $436.6 billion in goods a year.
MEXICO
STATUS: TARIFF TERMS DETAILED IN LETTER
Paired with the announcement for the EU, President Trump announced a 30% tariff on Mexican imports, also likely exempting USMCA compliant goods. The United States imports $454.8 billion in Mexican goods a year.
INDIA
STATUS: ONGOING
While trade negotiations continue, on July 8th, President Trump announced that India could face an additional 10% tariff alongside other members of BRICS (Brazil, Russia, India, China, and South Africa).
CHINA
STATUS: ONGOING
Tariffs on Chinese imports remain at a minimum of 30%, with no plans or negotiations announced. With $20.3 billion worth of bilateral trade in 2024, China was Georgia’s second-largest trade partner.
Georgia’s Trade Environment
In 2024, Georgia achieved a record-breaking year for international trade, with $198.7 billion in total trade activity and $53.1 billion in exports, representing a 6.4% year-over-year growth. This performance solidified Georgia’s position as the sixth-largest state for total trade in the U.S. and the twelfth-largest exporter overall. Georgia-made, -grown, and –produced goods could be found in 219 unique export markets.
Import volume through Georgia Ports has been at record highs this year as trade uncertainty and the risk of increased prices for importers circulate. In March, April, and May, the Port of Savannah handled over half a million container units, with May being Savannah’s second busiest May on record. While companies have hastened to bring materials and products into the United States ahead of looming tariff deadlines, long-term investments in capacity have proven critical in being able to efficiently process high container volume.
Top Trading Partners by Total Trade (2024)
Top
5 Exported Products (2024)
Civilian
$12.6 BILLION
$1.8 BILLION
$1.3 BILLION
Top 5 Imported Products (2024)
$15.0 BILLION
$4.7 BILLION
$3.7 BILLION
$2.4 BILLION
$1.6 BILLION
$5.7 BILLION
$4.2 BILLION
International Trade by the Numbers: 2024, Georgia Department of Economic Development, https://georgia.org/sites/default/files/2025-02/trade_report_2024_-_25it111_10.pdf
Countries & Regions, Office of the United States Trade Representative, https://ustr.gov/countries-regions#:~:text=U.S.%20goods%20imports%20 from%20the,percent%20of%20total%20goods%20imports.
Trade Compliance Resource Hub, ReedSmith, https://www.tradecomplianceresourcehub.com/2025/07/14/trump-2-0-tariff-tracker/
