new trump tariffs
By Hugh Cameron
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President Donald Trump has now imposed a raft of new tariffs on the majority of America's trading partners, reinstating the "reciprocal tariffs" first unveiled in April and triggering a substantial shift in global trade.
"Reciprocal tariffs take effect at midnight tonight!" the president wrote in an all-caps post to Truth Social on Wednesday.
"Billions of dollars, largely from countries that have taken advantage of the United States for many years, laughing all the way, will start flowing into the USA."
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Why It Matters
The tariffs represent one of the most seismic shake-ups for global trade in recent history. After months marked by threats, postponements and countries scrambling to solidify deals before the August 1 deadline, dozens now find themselves facing far higher duties than in the past, which threaten to disrupt exports, rattle industries and send shockwaves through entire economies.
For the U.S., as Trump notes, the import taxes have already accrued billions of dollars in revenue for the government, a windfall that is expected to continue growing. But as importers themselves are forced to grapple with the higher duties, many continue to voice concern that these costs will eventually be passed along to the American consumer.
What To Know
Most of the new duties took effect at midnight on August 7, and represent adjusted versions—most lower, some far higher—of the rates originally announced by Trump on "Liberation Day."
The hardest hit have been India and Brazil, both now facing 50 percent duties on their exports.
The White House said previously that the former would be hit with a 25 percent tariff. On Wednesday, however, Trump signed an executive order imposing an additional 25 percent duty on India for "directly or indirectly importing Russian Federation oil" in violation of Joe Biden-era directives. The additional rate will come into effect on August 27.
Brazil, whose exports were initially only at the 10 percent, baseline tariff on April 2, has also seen its rates rise to 50 percent, as threatened by Trump in early July. The new rate is made up of the 10 percent baseline tariff, as well as an ad valorem duty triggered by the prosecution of former President Jair Bolsonaro, now standing trial for attempting to overturn his 2022 election defeat.
In an interview with Reuters, incumbent President Luiz Inacio Lula da Silva said he would not be caving to Trump's demands to halt the prosecution. While he expressed openness to negotiations on the tariffs, Lula said he was not prepared to "humiliate" himself to bring down Brazil's rates.
While Mexico has seen its tariff rate stick at the 25 percent level announced early in the year, Canada's has recently risen to 35 percent. In the announcement last week, Trump said Canada had "failed to cooperate in curbing the ongoing flood of fentanyl and other illicit drugs" into the U.S. The president had said previously that the country's support for recognizing a Palestinian state would make any trade deal between Washington and Ottawa "very hard" to secure.
However, as Prime Minister Mark Carney noted in his response, goods that comply with the United States-Mexico-Canada Agreement—referred to as the USMCA, or as CUSMA in Canada—are still able to be shipped duty-free to the U.S.
Negotiations with China are still underway, and its goods have been subject to a 30 percent tariff since the two countries struck a trade truce in May. Both Washington and Beijing have agreed to suspend the imposition of any new tariffs until 12 August.
What People Are Saying
President Donald Trump, via Truth Social: "IT'S MIDNIGHT!!! BILLIONS OF DOLLARS IN TARIFFS ARE NOW FLOWING INTO THE UNITED STATES OF AMERICA!"
Indian Prime Minister Narendra Modi, per national media, said: "I know I'll have to pay a heavy price, but I'm ready. India is ready."
Canadian Prime Minister Mark Carney, in response to the tariff hike, posted: "President Trump has announced that the United States will increase its tariffs to 35 percent on those Canadian exports that are not covered under the Canada-United States-Mexico Agreement, or CUSMA.
"While the Canadian government is disappointed by this action, we remain committed to CUSMA, which is the world's second-largest free trade agreement by trading volume."
What Happens Next?
In addition to the country-specific duties and the baseline rate of 10 percent, the White House is in the process of imposing a number of sectoral tariffs. Trump has recently threatened a 100 percent tariff on foreign-made semiconductors, as well as a 250 percent tariff on pharmaceuticals.
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