Fact Sheet: President Donald J. Trump Continues Enforcement of Reciprocal Tariffs and Announces New Tariff Rates

7/7/2025

Fact Sheets

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Action Summary

Tariff Extension & Modification: President Trump signed an Executive Order extending certain tariff rate expirations from July 9 to August 1, 2025, and issued new reciprocal tariff rates effective August 1.
Tariff Letters to Trading Partners: Letters were sent to multiple countries outlining their new reciprocal tariff rates, with some rates being lower or higher than initially announced.
Trade Negotiation Insights: Actions were based on senior official recommendations and current trade negotiation statuses, aimed at balancing U.S. trade relationships.
Addressing Trade Imbalances: Despite progress, the U.S. trade deficit remains severe; the measures are meant to tackle nonreciprocal trade relationships and unfair trade practices.
Economic Sovereignty & National Security: Emphasis on reclaiming economic sovereignty by using tariffs to correct decades-long imbalances that threaten national security, while encouraging domestic manufacturing.
Country-Specific Tariff Rates: New rates were detailed for several countries, including Japan (25%), Korea (25%), South Africa (30%), Kazakhstan (25%), Laos (40%), Malaysia (25%), Myanmar (40%), Tunisia (25%), Bosnia and Herzegovina (30%), Indonesia (32%), Bangladesh (35%), Serbia (35%), Cambodia (36%), and Thailand (36%).
Long-Term Trade Strategy: The order and related communications signal commitment to reducing non-tariff barriers, expanding market access for American exporters, and ultimately ushering in a “Golden Age” for the American people.

Risks & Considerations

The Executive Order on reciprocal tariffs could lead to increased costs for imported goods, affecting the purchasing power of Vanderbilt University and its community. This may impact the procurement of international goods and services, potentially increasing operational costs.
Vanderbilt’s international collaborations and partnerships, particularly with countries affected by the new tariffs, may face challenges. This could hinder research collaborations, student exchange programs, and other international initiatives.
The increased tariffs may lead to retaliatory measures from affected countries, potentially impacting the university’s international students and faculty from those regions. This could affect enrollment and diversity within the university community.
There is a risk of economic instability due to potential trade wars, which could affect federal funding and grants that Vanderbilt relies on, particularly if the economic impact leads to budget cuts in education and research funding.

Impacted Programs

Vanderbilt’s International Programs may need to reassess their strategies and partnerships with countries affected by the tariffs to mitigate potential disruptions.
The Office of Global Safety and Security might need to provide additional support and guidance to students and faculty traveling to or from countries impacted by the new tariffs.
Research initiatives that rely on international collaboration or imported materials could face increased costs and logistical challenges, necessitating adjustments in project planning and budgeting.
The Financial Aid Office may need to consider the financial implications for international students affected by economic changes in their home countries due to the tariffs.

Financial Impact

The increased tariffs could lead to higher costs for imported goods and services, affecting the university’s budget and financial planning.
Potential retaliatory tariffs from affected countries could impact the university’s revenue from international students, who may face higher costs or reduced ability to study abroad.
Vanderbilt may need to explore alternative funding sources or cost-saving measures to offset potential increases in operational expenses due to the tariffs.
There may be opportunities for Vanderbilt to engage in research and policy analysis related to international trade and economic policy, potentially attracting new funding and partnerships.

Relevance Score: 4 (The order presents a need for potential major changes or transformations of programs.)

Key Actions

Vanderbilt’s Office of Federal Relations should closely monitor the impact of new reciprocal tariff rates on international collaborations and partnerships. Understanding these changes will be crucial for maintaining and expanding global research initiatives and educational exchanges.
The Vanderbilt Center for International Business should evaluate the potential effects of tariff changes on international student enrollment and faculty recruitment. By assessing these impacts, the university can develop strategies to mitigate any negative consequences and continue to attract a diverse international community.
Vanderbilt’s Economic Research Department should conduct studies on the broader economic implications of the new tariff policies. This research can provide valuable insights into how these policies affect global trade dynamics and economic stability, positioning Vanderbilt as a thought leader in international trade policy.
The Vanderbilt Institute for Global Health should assess the potential impact of tariff changes on global health initiatives and partnerships. By understanding these effects, the institute can adapt its strategies to ensure continued collaboration and support for international health projects.
Vanderbilt’s Supply Chain Management Program should explore the implications of tariff changes on supply chain operations and logistics. By identifying potential challenges and opportunities, the program can enhance its curriculum and provide students with relevant skills and knowledge in navigating complex trade environments.

Opportunities

The executive order presents an opportunity for Vanderbilt’s Business School to expand its research and teaching on international trade and economic policy. By leveraging its expertise, the school can contribute to the development of innovative trade strategies and policies, potentially influencing national and global economic practices.
Vanderbilt can capitalize on the increased focus on economic sovereignty by developing new programs and partnerships with domestic industries. This could include joint research initiatives, student internships, and collaborative projects, enhancing Vanderbilt’s reputation and reach in the business sector.
The emphasis on supporting American manufacturing offers an opportunity for Vanderbilt’s Engineering School to engage in research and development of advanced manufacturing technologies. By providing evidence-based recommendations, the school can influence how these technologies are implemented and used to support economic growth and innovation.
The order’s focus on improving trade relations aligns with Vanderbilt’s commitment to global engagement and collaboration. The university can develop targeted outreach and support programs for international students and faculty, enhancing their educational and research opportunities.
By engaging with the broader business community and policymakers, Vanderbilt can position itself as a leader in the national conversation on trade reform. Hosting conferences, workshops, and public forums on the implications of trade policies can further establish Vanderbilt as a hub for innovative economic thought and practice.

Relevance Score: 4 (The order presents the potential for major process changes required for Vanderbilt’s programs due to impacts on international collaborations and economic policies.)

Average Relevance Score: 3.2

Timeline for Implementation

Effective August 1, 2025: New reciprocal tariff rates are set to take effect on this date, extending the expiration of previously set rates initially scheduled for July 9, 2025.

Relevance Score: 5

Impacted Government Organizations

Office of the U.S. Trade Representative (USTR): As the primary agency responsible for developing and coordinating U.S. international trade policy, the USTR plays a central role in implementing reciprocal tariff adjustments and managing trade negotiations in response to this Executive Order.
Department of Commerce: Charged with promoting U.S. economic interests, including overseeing international trade affairs and ensuring compliance with trade regulations, the Department of Commerce is impacted by the tariff changes and related economic policy adjustments.
Department of the Treasury: With its focus on assessing the economic implications, revenue collection, and managing the trade deficit, the Treasury is directly involved in evaluating the impact of the revised tariff rates.
Department of State: Involved in diplomatic engagement and managing bilateral relations with the affected trading partners, the State Department plays a key role in the international communication and negotiations prompted by the tariff adjustments.
U.S. Customs and Border Protection (CBP): As part of enforcement at U.S. borders, CBP is affected by the updated tariff rates through its role in monitoring and administering trade compliance at entry points.

Relevance Score: 2 (3-5 agencies are directly impacted by the tariff policy adjustments.)

Responsible Officials

N/A – The text only details the President’s actions and recommendations, without designating specific agencies or officials to implement the directives.

Relevance Score: 1 (Directives involve high-level declarations without naming specific implementation officials.)