Trump Sets New Tariffs on Dozens of Countries’ Exports

US President Donald Trump has signed a sweeping executive order that imposes new “reciprocal” tariffs on imports from more than sixty countries and regions. This latest move marks a significant escalation in trade tensions, affecting major US allies and trade partners with levies ranging from 15 percent to as high as 50 percent, and in some cases even more.

This article, inspired by detailed reporting from Al Jazeera English, breaks down the key elements of the executive order, the countries impacted, the rationale behind these tariffs, and what this means for global trade relations going forward.

Table of Contents

• Overview of the New Tariffs
• Country-Specific Tariff Details
• Notably Absent: China
• Grace Period and Implementation Timeline
• Impact on Existing Trade Agreements
• What This Means for Global Trade
• Frequently Asked Questions (FAQs)

Overview of the New Tariffs

President Trump’s executive order increases import tariffs on a broad range of goods from dozens of countries. The tariffs vary widely depending on the country and the nature of trade relations with the US. For instance, Canadian goods not covered by the existing free trade agreement now face a 35 percent tariff, a notable rise from the previous 25 percent rate.

The White House attributes these measures to what it calls “inaction” on trade negotiations, particularly criticizing Canada’s stance. Additionally, the administration cites concerns over the flow of fentanyl across the US-Canada border as a justification for invoking a national emergency to impose these tariffs.

Country-Specific Tariff Details

Canada

Canada has been hit with a 35 percent tariff on goods not protected under the existing free trade agreement. This increase is framed as a consequence of Canada’s perceived failure to advance trade talks and address cross-border fentanyl trafficking. Interestingly, this announcement came despite earlier remarks from President Trump about his dissatisfaction with Canada’s recognition of Palestinian statehood, which he suggested could complicate trade negotiations.

Mexico

Mexico, the US's largest trade partner, received a 90-day reprieve from proposed 30 percent tariffs following a reportedly positive conversation between President Trump and Mexican President Andrés Manuel López Obrador. This temporary delay allows continued negotiations before any tariff increases take effect.

South Korea and Other US Allies

A deal has already been reached with South Korea, which will now face a 15 percent tariff on its exports to the US. Similarly, many US allies, including the European Union and Japan, are subject to an additional 15 percent tariff as part of this new executive order.

Other Notable Countries

• Brazil: Faces a 50 percent tariff, with President Trump expressing a desire to increase this to 90 percent. This is linked to Trump’s opposition to the prosecution of former Brazilian President Jair Bolsonaro.
• Switzerland: Surprised many by receiving a 39 percent tariff.
• India: Subject to a 25 percent tariff on goods exported to the US.
• Syria: Imposed with a 41 percent tariff.
• Taiwan: According to the executive order, faces a 20 percent tariff.
• South Africa: Also included in the tariff list with a 30 percent rate.

Notably Absent: China

Despite ongoing trade tensions between the US and China, China was not included in this latest tariff list. Trade talks between the two economic giants continue, and it appears China has temporarily avoided new levies for now.

Grace Period and Implementation Timeline

One critical update is the introduction of a seven-day grace period before these tariffs take effect. Initially, it was expected that the tariffs would start at midnight on the day of the order, but the White House has since clarified that the tariffs will begin on August 7th. This delay allows affected countries a short window to adjust to the new trade environment.

Impact on Existing Trade Agreements

It is important to note that the majority of trade between the US, Canada, and Mexico remains protected under the pre-existing trade deal negotiated during President Trump’s first term. Goods covered under this agreement are exempt from the new tariffs, which primarily target products outside the scope of that deal.

What This Means for Global Trade

President Trump’s executive order represents a significant shift in US trade policy, emphasizing reciprocal tariffs as a tool to pressure countries into more favorable trade negotiations. While it targets a wide range of countries, the strategy risks straining relations with key allies and could lead to retaliatory measures.

For businesses and consumers, these tariffs may result in higher costs and disrupted supply chains, particularly in sectors heavily reliant on imports from the affected countries.

Frequently Asked Questions (FAQs)

What are the new tariffs imposed by the US?

The US has imposed new tariffs ranging from 15 percent to 50 percent on imports from over sixty countries, including Canada, Brazil, India, and many US allies.

Why were tariffs increased on Canadian goods?

The tariffs on Canadian goods increased from 25 percent to 35 percent, citing Canada’s inaction on trade negotiations and concerns about fentanyl trafficking across the border.

Is Mexico affected by the new tariffs?

Mexico received a 90-day reprieve from the proposed 30 percent tariffs following positive talks with President Trump, allowing time for further negotiations.

Are China’s exports affected by these new tariffs?

No, China was notably absent from this list and currently has a reprieve as trade talks continue.

When will these tariffs take effect?

The tariffs will be implemented seven days after the executive order, beginning on August 7th.

Do these tariffs affect all trade between the US, Canada, and Mexico?

No, most trade between these three countries remains protected under the existing trade agreement negotiated during President Trump’s first term.