Trump announces new 'reciprocal' tariff rates
President Trump on Thursday announced tariff rates for dozens of countries that will take effect on Aug. 7, potentially upending the global trade system.
Trump signed an executive order that modified tariff rates for dozens of countries after he had twice delayed plans to implement "reciprocal" tariffs on other nations. Tariff rates range from as high as 41 percent on goods from Syria to as low as 10 percent, which is the baseline established for all imports.
"Some trading partners have agreed to, or are on the verge of agreeing to, meaningful trade and security commitments with the United States, thus signaling their sincere intentions to permanently remedy the trade barriers ... and to align with the United States on economic and national security matters," the executive order stated.
"Other trading partners, despite having engaged in negotiations, have offered terms that, in my judgment, do not sufficiently address imbalances in our trading relationship or have failed to align sufficiently with the United States on economic and national-security matters," the executive order continues.
The executive order states that all imports will face a 10 percent tariff. The order goes into effect at 12:01 a.m., seven days after it is signed, which would fall on Aug. 7.
Some nations have negotiated separate trade agreements to lock in tariff rates. For example, Indonesia and Thailand agreed to a 19 percent tariff, South Korea and Japan negotiated deals that included a 15 percent tariff and the United Kingdom struck a deal for a 10 percent tariff.
Certain other nations that have not negotiated deals will face higher rates.
Trump announced he was hitting Brazil with a 50 percent tariff, in part citing the country's prosecution of former President Jair Bolsonaro over his efforts to remain in power after losing an election. Trump has also announced Canada will face a 35 percent tariff, citing frustrations with the flow of fentanyl into the United States.
Other tariff rates established in Thursday's executive order include Laos (40 percent), Switzerland (39 percent), Iraq (35 percent), South Africa (30 percent), India (25 percent), Algeria (30 percent), Moldova (25 percent) and Nicaragua (18 percent).
Many other countries are facing a 15 percent tariff.
The timing and severity of tariffs on other nations have been shifting targets since Trump took office, after vowing on the campaign trail to aggressively impose duties on imports. He has reportedly threatened tariffs on other nations, only to back off or delay their imposition.
The president on April 2 announced “reciprocal” tariffs on dozens of other countries. But a week later, he lowered those rates to 10 percent for 90 days as markets reacted negatively, giving time for negotiations. The 90-day window was set to expire in early July, only for Trump to extend the deadline to Aug. 1.