Key Highlights
Amendment in Import Policy Condition of import of Virgin Multi-layer Paper Board (22 Aug)
The Directorate General of Foreign Trade has amended the Import Policy Condition and imposed Minimum Import Price (MIP) of INR 67,220 per MT on Cost, Insurance, and Freight (CIF) value on import of Virgin Multi-layer Paper Board (VPB) under ITC (HS) Codes 48 05 9100, 48 05 9200, 48 05 9300, 48 10 9200 and 48 10 9900 till 31st March 2026.
Updates concerning Measures by and against the USA
The USA hikes 'anti-fentanyl' tariffs on Canada under IEEPA (31 Jul) In February, the USA had imposed a tariff of 25% on Canadian imports, purportedly in response to the flow of illicit drugs from Canada to the USA. On 31st July 2025, the tariff rate was increased to 35%. The order continues the exemption from tariffs granted to USMCA-compliant goods. As a result, most goods exported from Canada to the USA continue to be free of tariffs.
The USA reciprocal tariffs enter into force, revised tariff rates notified (07 Aug)
On 31st July 2025, the USA announced revised rates of reciprocal tariffs under IEEPA to counter perceived trade barriers of its trade partners. The tariffs entered into force on 7th August 2025. The tariff rate for India has been set at 25%. The tariff rates for other countries such as Japan and the European Union, which announced last-minute framework deals with the USA, have been tariffed at 15%. The Executive Order also announces an additional 'transshipment tariff' of 40% for goods that were transhipped to evade duties.
The USA defers application of country-specific reciprocal tariffs against China (11 Aug)
In view of the ongoing negotiations with China PR, the USA has suspended the application of the country-specific reciprocal tariff for China. The tariffs were supposed to enter into force on 12th August 2025. However, the tariffs have now 4 been deferred till 10th November 2025. In the interim, reciprocal tariffs will apply to Chinese imports at the flat rate of 10%, announced in April for all countries.
The USA adds 407 new HS codes to list of products subject to Section 232 measures on steel and aluminum (15 Aug)
On 15th August 2025, the US Department of Commerce added 407 HS codes to the list of steel and aluminum products subject to Section 232 measures. The measures are ad valorem and only the steel and aluminum content of these products will be subject to Section 232 measures. The updated list took effect on 18th August 2025 and is available on the link herein.
Brazil initiates WTO dispute regarding tariffs imposed by the USA (11 Aug)
Brazil has formally requested consultations with the USA under the Dispute Settlement Understanding, regarding the tariffs imposed by the USA against imports from Brazil. Presently, imports from Brazil are subject to reciprocal tariffs at 10% and additional tariffs at 40%, imposed due to alleged erosion of democracy in Brazil. Brazil has claimed that the measures are inconsistent with the United States' obligations under various provisions of the General Agreement on Tariffs and Trade and the Dispute Settlement Understanding. If the consultations do not yield a satisfactory resolution within 60 days, Brazil is permitted to request constitution of a panel to adjudicate the matter.
European Union proposes tariff reductions to advance the deal between the European Union and the USA (28 Aug)
On 28th August 2025, the European Commission introduced two legislative proposals to begin implementing the EU-US Joint Statement as agreed on 21st August 2025. The first proposal aims to eliminate tariffs on a range of industrial goods imported from the USA and grant preferential market access for selected seafood and non-sensitive agricultural products from the USA. The second proposal extends existing duty-free treatment for lobster from the USA to include processed lobster. Both proposals must be approved by the European Parliament and the Council through an ordinary legislative procedure before they can take effect.
In return, the USA is expected to implement additional tariff relief measures. These include zero or near-zero tariffs on certain exports from the European Union, such as cork and other unavailable natural resources, all aircraft and aircraft parts, as well as generic pharmaceuticals and their chemical precursors.
These goods will be subject to Most-Favoured Nation (MFN) tariff treatment, and both sides have agreed to work toward expanding this list in the future.
Global Updates
WTO releases its annual report for 2024-25 (07 Aug)
WTO released its annual report, covering its activities in 2024 and the early part of 2025. The report provides an overview of the WTO and the WTO Secretariat, the funding and administration related issues, as well as activities undertaken during the period, including the thirteenth Ministerial Conference.
Nepal accepts the WTO Agreement on Fisheries Subsidies (18 Aug)
On 18th August 2025, the WTO Director received Nepal's acceptance of the Agreement on Fisheries Subsidies. The WTO Director praised Nepal, calling it a crucial step towards ocean sustainability. Only three more WTO member acceptances are needed for the Agreement to come into force.
The Agreement on Fisheries Subsidies, adopted at the 12th Ministerial Conference of WTO in June 2022, introduces binding multilateral rules to curb harmful subsidies, including those that support illegal, unreported, and unregulated fishing, subsidies for fishing of overfished stocks and those for fishing on unregulated high seas. Recognizing the challenges faced by developing and leastdeveloped countries, the WTO has established a Fish Fund to provide technical assistance and capacity-building to implement the Agreement.
China initiates a WTO dispute regarding Canadian surtaxes, quotas on steel, aluminum goods (20 Aug)
On 20th August 2025, China requested dispute consultations with Canada. This is regarding the Canadian measures imposing a surtax in the form of tariff rate quota on imports of certain steel goods originating from non-free trade agreement partners for Canada, including China. This also concerns the surtax imposed by Canada on imports of certain steel and aluminum goods that contain steel or aluminum originating from China.
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