United States President Donald Trump has signed an executive order reimposing “reciprocal tariffs” ranging from 10 percent to 41 percent on US imports from dozens of countries and foreign locations. The tariffs, which aim to address the country’s trade deficits, will affect goods from various trading partners, including some of Washington’s major partners.
Trump cited the “continued lack of reciprocity in our bilateral trade relationships” in a statement on the White House website announcing the reimposition of the tariffs. “I have determined that it is necessary and appropriate to deal with the national emergency declared in Executive Order 14257 by imposing additional ad valorem duties on goods of certain trading partners,” he said.
The tariffs will be implemented starting August 7, with some countries facing higher rates than others. Countries with which the US holds a trade surplus will face a 10 percent “universal tariff,” while countries with a trade deficit will face a base 15 percent tariff. Notable tariffs include:
- Countries with High Tariffs:
- Syria: 41%
- Switzerland: 39%
- Laos: 40%
- Iraq and Serbia: 35%
- Algeria, Bosnia and Herzegovina, Libya, and South Africa: 30%
- Countries with Lower Tariffs:
- Australia and the United Kingdom: 10%
- Japan and South Korea: 15%
- Taiwan: 20%
- India: 25%
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The Trump administration’s approach to trade has been characterized as a country-by-country approach, with each country receiving its own tariff rate based on the president’s view of their economy. “The Trump administration takes a country-by-country approach when it comes to trade. There is no overarching theory to explain the specifics for each country. Each country gets its own tariff rate based on the view of the president at that given time, for trade reasons or otherwise,” said Steve Okun, founder and CEO of APAC Advisors in Singapore.
In a separate White House fact sheet, Trump said he would raise tariffs on Canada from 25 to 35 percent, citing Canada’s failure to cooperate in curbing fentanyl flows into the US. Mexico, however, received a 90-day extension on tariffs due to ongoing dialogue, according to Mexican President Claudia Sheinbaum. “We had a very good call with the president of the United States, Donald Trump. We avoided the tariff increase announced for tomorrow and secured 90 days to build a long-term agreement through dialogue,” Sheinbaum said on social media.
The US and China have been engaged in trade talks, with US Treasury Secretary Scott Bessent indicating that a deal may be near. However, China is set to face an additional 30 percent tariff on most of its goods if an agreement is not reached by August 12.
Trade experts have noted that the tariffs were announced just hours before the latest deadline and may lead to further negotiations between the US and its trading partners. “The numbers are all over the place. The original formula was nonsense, but at least it had a logic.
These rates do not appear to fit known facts. Some countries that bargained hard got better outcomes. Some did not. Some that didn’t get a hearing went down while others were increased,” said Deborah Elms, head of trade policy at the Hinrich Foundation in Singapore. Inu Manak, a trade policy expert at the Council on Foreign Relations, added that many countries may try to negotiate tariff rates before the August 7 deadline.