Trump imposes new reciprocal tariffs on over 70 nations; Syria, Canada, Brazil face steep taxes

25 pc tariff on India

India is set to face a 25 per cent “Reciprocal Tariff, Adjusted”. While August 1 was the tariff deadline, the new levies will come into effect from August 7.

Trump said in the executive order that some trading partners have agreed to, or are on the verge of agreeing to, meaningful trade and security commitments with the United States, thus signalling their sincere intentions to permanently remedy trade barriers and to align with the United States on economic and national security matters.

“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,” he said.

Trump further said in the order that there are also some trading partners that have failed to engage in negotiations with the United States or to take adequate steps to align sufficiently with the United States on economic and national security matters.

7 days’ time

The tariff modifications shall be “effective with respect to goods entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. eastern daylight time 7 days after the date of this order.” The order said that certain foreign trading partners identified in the list have agreed to, or are on the verge of concluding, meaningful trade and security agreements with the United States.

"Goods of those trading partners will remain subject to the additional ad valorem duties… until such time as those agreements are concluded, and I issue subsequent orders memorializing the terms of those agreements.” The tariffs in the list range from 10 per cent to 40 per cent, with Brazil being charged 10 per cent tariffs, Japan (15 per cent), Laos and Myanmar (40 per cent each), Pakistan (19 per cent), Sri Lanka (20 per cent) and the United Kingdom (10 per cent).

Tariff hike for Canada

The US has also increased Canada's tariff from 25 per cent to 35 per cent for the latter’s alleged failure to on the “illicit drug crisis” and retaliating against the US for measures taken in this regard. Trump told reporters that Canadian Prime Minister Mark Carney had reached out to the US ahead of the August 1 deadline, but no conversation took place between the two leaders.

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The order was issued shortly after 7 pm on Thursday evening. It came after a flurry of tariff-related activity in the last several days, as the White House announced agreements with various nations and blocs ahead of the president's self-imposed Friday deadline. The tariffs are being implemented at a later date in order for the rates schedule to be harmonised, according to a senior administration official who spoke to reporters on a call on the condition of anonymity.

Revised taxes

Here are the countries that will be affected by the revised tariffs:

India – 25 per cent

Afghanistan – 15 per cent

Algeria – 30 per cent

Angola – 15 per cent

Bangladesh – 20 per cent

Bolivia – 15 per cent

Bosnia and Herzegovina – 30 per cent

Botswana – 15 per cent

Brazil – 10 per cent

Brunei – 25 per cent

Cambodia – 19 per cent

Cameroon – 15 per cent

Chad – 15 per cent

Costa Rica – 15 per cent

Côte d'Ivoire – 15 per cent

Democratic Republic of the Congo – 15 per cent

Ecuador – 15 per cent

Equatorial Guinea – 15 per cent

European Union: Goods with Column 1 Duty Rate > 15 per cent - 0 per cent

European Union: Goods with Column 1 Duty Rate < 15 per cent – 15 per cent minus Column 1 Duty Rate

Falkland Islands – 10 per cent

Fiji – 15 per cent

Ghana – 15 per cent

Guyana – 15 per cent

Iceland – 15 per cent

Indonesia – 19 per cent

Iraq – 35 per cent

Israel – 15 per cent

Japan – 15 per cent

Jordan – 15 per cent

Kazakhstan – 25 per cent

Laos – 40 per cent

Lesotho – 15 per cent

Libya – 30 per cent

Liechtenstein – 15 per cent

Madagascar – 15 per cent

Malawi – 15 per cent

Malaysia – 19 per cent

Mauritius – 15 per cent

Moldova – 25 per cent

Mozambique – 15 per cent

Myanmar (Burma) – 40 per cent

Namibia – 15 per cent

Nauru – 15 per cent

New Zealand – 15 per cent

Nicaragua – 18 per cent

Nigeria – 15 per cent

North Macedonia – 15 per cent

Norway – 15 per cent

Pakistan – 19 per cent

Papua New Guinea – 15 per cent

Philippines – 19 per cent

Serbia – 35 per cent

South Africa – 30 per cent

South Korea – 15 per cent

Sri Lanka – 20 per cent

Switzerland – 39 per cent

Syria – 41 per cent

Taiwan – 20 per cent

Thailand – 19 per cent

Trinidad and Tobago – 15 per cent

Tunisia – 25 per cent

Turkey – 15 per cent

Uganda – 15 per cent

United Kingdom – 10 per cent

Vanuatu – 15 per cent

Venezuela – 15 per cent

Vietnam – 20 per cent

Zambia – 15 per cent

Zimbabwe – 15 per cent

Last-minute negotiations

The order capped off a hectic Thursday as nations continued to negotiate with Trump. It set the rates for 68 countries and the 27-member European Union, with a baseline 10 per cent rate to be charged on countries not listed in the order. A senior administration official told AP the rates were based on trade imbalance with the US and regional economic profiles.

On Thursday morning, Trump engaged in a phone conversation with Mexican President Claudia Sheinbaum on trade. As a result of the conversation, the US president said he would enter into a 90-day negotiating period with Mexico, one of the nation's largest trading partners, with the current 25 per cent tariff rates staying in place, down from the 30 per cent he had threatened earlier.

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“We avoided the tariff increase announced for tomorrow and we got 90 days to build a long-term agreement through dialogue,” Mexican leader Claudia Sheinbaum wrote on X after a call with Trump that he referred to as “very successful” in terms of the leaders getting to know each other better.

A few excellent deals made: Trump

The unknowns created a sense of drama that has defined Trump's rollout of tariffs over several months, with the one consistency being his desire to levy the import taxes that most economists say will ultimately be borne to some degree by US consumers and businesses.

“We have made a few deals today that are excellent deals for the country,” Trump told reporters on Thursday afternoon without detailing the terms of those agreements or the nations involved. The senior administration official declined to reveal the nations that have new deals during the call with reporters.

August 1 deadline

Trump imposed the Friday deadline after his previous “Liberation Day” tariffs in April resulted in a stock market panic. His unusually high tariff rates unveiled in April led to recession fears, prompting Trump to impose a 90-day negotiating period. When he was unable to create enough trade deals with other countries, he extended the timeline and sent out letters to world leaders that simply listed rates, prompting a slew of hasty deals.

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Trump reached a deal with South Korea on Wednesday, and earlier with the European Union, Japan, Indonesia and the Philippines. His commerce secretary, Howard Lutnick, said on Fox News Channel's “Hannity” that there were agreements with Cambodia and Thailand after they had agreed to a ceasefire to their border conflict.

Going into Thursday, wealthy Switzerland and Norway were still uncertain about their tariff rates. EU officials were waiting to complete a crucial document outlining how the framework to tax imported autos and other goods from the 27-member state bloc would operate.

Trump had announced a deal on Sunday while he was in Scotland.

Deal with Mexico

Trump said as part of the agreement with Mexico that goods imported into the US would continue to face a 25 per cent tariff that he has ostensibly linked to fentanyl trafficking. He said autos would face a 25 per cent tariff, while copper, aluminium and steel would be taxed at 50 per cent during the negotiating period.

He said Mexico would end its “Non-Tariff Trade Barriers,” but he didn't provide specifics.

Some goods continue to be protected from the tariffs by the 2020 US-Mexico-Canada Agreement, or USMCA, which Trump negotiated during his first term.

But Trump appeared to have soured on that deal, which is up for renegotiation next year. One of his first significant moves as president was to impose tariffs on goods from both Mexico and Canada earlier this year.

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US Census Bureau figures show that the US ran a $171.5 billion trade imbalance with Mexico last year. That means the US bought more goods from Mexico than it sold to the country.

The imbalance with Mexico has grown in the aftermath of the USMCA, as it was only $63.3 billion in 2016, the year before Trump started his first term in office.

(With inputs from agencies)