New mutual tariff rates on various trading partners of President Trump are set to begin on Thursday. This change is being pushed forward as markets, consumers, and businesses back significant shifts in the global trade system.
The president signed an executive order last Thursday that revealed new fees, although the implementation was announced earlier in the week. Once these tariffs go into effect, the average rate will be around 15%, which is an increase compared to last year’s figures.
The plans for these mutual tariffs were first made public on April 2, but due to pressures from Wall Street and some Republicans, the president added a 90-day delay shortly afterward to ease market volatility. Initially set to expire in early July, this delay was extended until August 1, with Thursday now being the final deadline.
According to the executive order, all imports will face a 10% tariff. Some countries will see even higher rates, including Syria at 41%, Indonesia and Thailand at 19%, and South Korea, Japan, and the EU at 15%.
Other countries have similarly high tariffs: Laos (40%), Switzerland (39%), Iraq (35%), South Africa (30%), India (25%), Algeria (30%), Moldova (25%), and Nicaragua (18%).
Trump is also imposing even steeper tariffs on certain nations for specific reasons. Brazil will face a 50% tariff due to issues related to former President Jair Bolsonaro’s actions, while Canada will have a 35% tariff because of Trump’s concerns over fentanyl trafficking across the border.
On the campaign trail, Trump had promised sudden tariffs, arguing that prolonged dealings with trading partners could harm the US, eventually leading to higher rates and increased domestic manufacturing.
As everyone anticipates these tariffs, consumers and businesses are bracing for rising costs.
Which products are exempt?
Goods already on their way to the US won’t be subject to these new customs duties.
Items that are part of the US-Canada Trade Agreement from 2020 will also be exempt from these duties in both Canada and Mexico.
The president has established rules regarding transshipment and has indicated that goods sent through countries with lower tariffs will face a 40% tax based on their country of origin.
Additionally, the exception for De Minimis merchandise has been ended. Thus, items shipped under $800 to commercial airlines after August 29 will now incur import fees.
What other customs duties are coming?
Meanwhile, Trump’s ultimatum for Russia to agree to a ceasefire with Ukraine or face “serious” tariffs remains in place. This follows a meeting between special envoy Steve Witkov and Russian President Vladimir Putin.
The president has also threatened to impose 100% “secondary” tariffs on countries engaging with the Kremlin, particularly in terms of purchasing Russian oil and gas, which affects India directly. An executive order signed Wednesday raised tariffs on India by an additional 25%, taking effect in three weeks.
Trump suggested that this approach could extend to more countries that buy oil from Russia after India.
“More will follow. You’ll see many secondary sanctions,” he remarked.
Trade discussions with China are ongoing, with officials exploring a possible extension of the August 12 deadline for imposing 30% tariffs on Chinese imports. The length of this potential extension remains uncertain.
Additionally, the president is contemplating specific industry tariffs, including up to 250% on drug imports. Recent measures also included copper tariffs, although some products won’t see tariffs until 2027. Meanwhile, tariffs on automotive, steel, and aluminum are already enforced.
