US President Donald Trump has signed a new executive order that puts higher taxes, called tariffs on goods coming from more than 70 countries. These tariffs range between 10 per cent and 41 per cent, and the White House says the move is meant to fix what it sees as unfair trade practices against the United States. India is one of the countries hit by these new rules and will now face a 25 per cent tariff when selling goods to the US.
The U.S. has also increased tariffs on Canada, raising them from 25 per cent to 35 per cent. The US government said this is because Canada has not done enough to deal with illegal drug problems and has taken actions that go against U.S. interests.
The U.S. government also released a full list of countries and the new tariff rates they will face:
New US tariff rates by country:
- 41 per cent – Syria
- 40 per cent – Laos, Myanmar (Burma)
- 39 per cent – Switzerland
- 35 per cent – Iraq, Serbia, Canada
- 30 per cent – Algeria, Bosnia & Herzegovina, Libya, South Africa
- 25 per cent – India, Brunei, Kazakhstan, Moldova, Tunisia
- 20 per cent – Bangladesh, Sri Lanka, Taiwan, Vietnam
- 19 per cent – Pakistan, Malaysia, Indonesia, Cambodia, Philippines, Thailand
- 18 per cent – Nicaragua
- 15 per cent – Israel, Japan, Turkey, Nigeria, Ghana, and several others
- 10 per cent – Brazil, United Kingdom, Falkland Islands
If a product already has a U.S. import tax (tariff) of more than 15 per cent, it won’t be affected. But if the current tax is less than 15 per cent, it will be increased so that the final rate becomes 15 per cent minus the current rate.
The order followed several days of intense tariff-related developments, as the White House struck deals with various countries and trade blocs ahead of the president’s self-imposed August 1 deadline.
When will the new US tariffs start?
The White House has shared a timeline for when the new import taxes (tariffs) will begin, following President Trump’s latest executive order.
Originally, Trump gave countries until August 1 to reach trade agreements with the U.S. before the new tariffs would be applied. Now, for the 70+ countries affected, the higher tariff rates will officially begin seven days after the order was signed.
Shipping Grace Period
There is a small grace period in place. If goods are loaded onto ships by August 7, and arrive in the U.S. by October 5, they won’t be charged the new, higher tariff rates—as long as they were already in transit.
Special Rule for Canada
Canada is being treated differently. The new 35 per cent tariff on Canadian products will start immediately within just a few hours of the order being released, on August 1.
Trump says tariff decision based on intelligence reports
President Trump said that his decision to raise tariffs was based on new intelligence reports and advice from top US officials. He explained that the goal is to fix unfair trade practices and make trade more balanced. “Some countries have made offers, but I don’t think they go far enough to fix the trade problems,” Trump said.
He also criticized other nations for not taking talks seriously or for not cooperating with the U.S. on important economic and national security issues.
The White House also suggested that more tariff changes could be coming soon, especially for countries that haven’t yet made trade deals with the U.S. before the August 1 deadline.
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