Four months after President Trump unveiled, and then paused, sweeping tariffs on countries across the globe, the administration has announced an update. The handful of countries and regions that have managed to strike preliminary trade agreements—including Vietnam, Japan, the U.K. and the European Union—will remain unchanged. Countries that have yet to strike a deal will face higher tariffs, most set to take effect August 7.
Among the new policies, Brazil is facing the steepest tariff at a 50 percent rate—up 40 percent from the 10 percent “reciprocal” tariff announced in April. Canada’s rate has also been increased, landing at 35 percent, up from its original rate of 25 percent, though some imports remain exempt under the U.S.-Mexico-Canada Agreement, or USMCA, which came into effect in 2020. Elsewhere, Switzerland will have a 39 percent rate; Sri Lanka and Taiwan will be subject to 20 percent tariffs; and India will face a 25 percent tariff. A global base rate of 10 percent will remain in place.
The new policies follow months of shifting deadlines and preliminary trade deals, in which U.S. trading partners sought to reduce their rates or alter their agreements through negotiations with the U.S. That period produced several new agreements (though far fewer than the “90 deals in 90 days” target teased by the administration in mid April), including a 15 percent tariff on most E.U. goods, 19 percent on imports from Thailand and 20 percent on imports from Vietnam.
China, meanwhile, remains at a temporary 30 percent rate, set to expire August 12, though U.S. officials may extend that deadline as negotiations continue. The same goes for Mexico, which will remain at a 25 percent tariff rate—with the same USMCA exemptions as Canada—for at least another 90-day period to allow for further trade deal discussions.
A number of industry-specific duties also remain in place, including a 50 percent tariff on imported steel, aluminum and copper, as well as a 25 percent tariff on automobiles and auto parts. Unspecified tariffs on lumber, pharmaceuticals, semiconductors and other sectors remain in progress.
U.S. stocks opened lower following the news, with the Dow Jones industrial average down 665 points, or 1.54 percent, the S&P 500 down 1.8 percent and the Nasdaq down 2.5 percent, CNN reports.
