The dreaded and much-awaited August 1 deadline laid by Donald Trump is here, and as expected his Republican cabinet under his supervision has hit dozens of trade partners with steep tariffs – 35% on Canada, 50% on Brazil, 25% on India, 20% on Taiwan, and 39% on Swiss goods.
The latest and revised executive order stated that goods from all other countries not listed in an annexure would be subject to a 10% US tariff rate.
US President Donald Trump has signed a new executive order slapping higher tariffs ahead of a Friday (August 1) timeline – his latest bid to reshape global trade in favour of US businesses. The higher import duty rates, ranging from 10% to 41% are set to start in a duration of seven days for 69 trading partners (68 nations + European Union), according to the order. Officials from the Trump administration told reporters that more such deals were yet to be announced as Trump’s higher ‘reciprocal’ tariff rates were set to take effect in the upcoming period.
US-India Deal
A day after his media address, Trump posted an official tweet terming ‘India and Russia as dead economies’ and imposing a 25% tariff on Indian-export goods, after talks bogged down over access to India’s agriculture sector, further drawing a higher-rate threat from Trump that also included an unspecified penalty for India’s purchases of Russian oil.
Although negotiations with India were in process and set to take place in the second half of August, the cabinet has vowed to protect the country’s labor-intensive farm sector, as triggers from the opposition party roared, along with a slump in the rupee value.
Trump’s Plan
The latest tariff sanction has import duties ranging from as high as 41 per cent on Syria, 35 per cent on many goods from Canada, 50 per cent for Brazil, 20 per cent for Taiwan and 39 per cent for Switzerland. Meanwhile, the duty on Pakistan imports was slashed from 29 per cent to 19% in a revised announcement, raising eyebrows on Trump’s sudden fondness for this neighbouring country.
- President Donald Trump on July 31 announced a broad set of new tariffs, including a 10% global minimum rate and elevated duties of 15% or more for nations running trade surpluses with the United States.
- According to the order, any country not listed in an annexure would face a default US import tariff of 10%.
- He also issued a separate directive raising the tariff on Canadian goods linked to fentanyl-related concerns from 25% to 35%, accusing Canada of having ‘failed to cooperate’ in addressing the flow of fentanyl into the United States.
Top 10 Countries with Highest Tariffs
- Syria – 41%
- Laos – 40%
- Myanmar (Burma) – 40%
- Switzerland – 39%
- Iraq – 35%
- Serbia – 35%
- Algeria – 30%
- Bosnia and Herzegovina – 30%
- Libya – 30%
- South Africa – 30%
- Speaking about the sharp tariffs imposed on Canadian exports – Canada being America’s second-largest trading partner after Mexico — a Republican government official opined that Canadian representatives have apparently not displayed the same level of constructiveness that has been witnessed from the Mexican counterparts, and hence higher duties have been imposed.
Mexico received an extension that prevents a 30% tariff on most of its non-automotive and non-metal exports that meet USMCA (United States-Mexico-Canada Agreement) rules. However, President Trump confirmed that the United States would maintain a 50% tariff on Mexican steel, aluminum and copper, as well as a 25% tariff on Mexican cars and on goods that fall outside the USMCA framework but are subject to fentanyl-related duties.
Helene Elliott is the senior reporter for News Raise. She covers Science news. She also has a keen interest in photojournalism. Helene holds a nomination for the prestigious Red Smith Award. She is married to author Dennis D’Agostino, a former publicist with the New York Mets.
