President Donald Trump unveiled new tariff rates for dozens of countries after a flurry of negotiations ahead of the self-imposed Aug. 1 deadline.
The administration set rates for dozens of countries starting Aug. 7th, ranging from 10% to 41%. President Trump indicated he was open to conversations still, but did not guarantee new deals while leaving the White House Friday afternoon.
For many of the nation's top trading partners, preliminary steps had already been announced in the lead-up to Thursday’s executive order, though the full text of some agreements has yet to be made public.
President Donald Trump previously announced a 20% tariff rate for Vietnam, 15% for the European Union and South Korea, and 10% for the United Kingdom. The rate for Taiwan was set at 20%, down from the original “Liberation Day” rate of 32%.
China was not affected, as discussions continue amid a pause on higher rates. Following a conversation with Mexican President Claudia Sheinbaum, President Donald Trump announced a 90-day delay while talks move forward.
President Trump previously announced a rate of 25% for India.
“I understand India no longer is going to be buying oil from Russia. That's what I heard. I don't know if that's right or not, but that's a good step. We'll see what happens,” Trump said Friday.
However, Canada’s tariff rate increased by 10 points to 35% for goods not covered by existing trade agreements. The change, effective immediately, was tied to the flow of drugs across the northern border and came after President Donald Trump criticized Canada’s recognition of a Palestinian state. Prime Minister Mark Carney responded by saying, “Canada accounts for only 1% of U.S. fentanyl imports and has been working intensively to further reduce these volumes.”
“Something that is critically important about what's going on with these tariffs and Canada and Mexico is that everything that is currently protected under the North American Free Trade Agreement or NAFTA is exempted from the tariffs, which represents about 85% of all imports coming from Canada and Mexico. And so this is important when we want to start talking about things like impacts and what consumers are likely to feel versus what they might not feel,” said Abby Hall, associate professor of economics at the University of Tampa.
The administration already announced action to increase Brazil’s rates as high as 50% in total, citing political factors.
“He can talk to me any time he wants,” Trump said of Brazil’s leader.
Switzerland saw a rate of 39%, up from its original reciprocal rate, while Syria and South Africa maintained among the higher rates.
“We have a $40 billion deficit with Switzerland, and I spoke yesterday to Switzerland, but we have a $40 billion deficit with Switzerland,” Trump said.
“I think what I see from these announcements is it's really a starting point for further negotiations, for continued conversations about what are the tariffs that are at issue on the EU side. What are the non-tariff barriers? How will it be implementing these commitments? For many countries, even something that seems simple, like changing a tariff rate, reducing tariffs in U.S. products — that may take a legislative process, it may be a regulatory process,” Greta Peisch, partner at Wiley Rein and former general counsel at USTR under the Biden administration, said of the announcements unveiled ahead of Thursday’s executive order.
Still, President Trump remained open to conversations with countries during the seven days before rates take effect, according to a senior administration official.
The official also noted the administration is fine where everything is, pointing to a significant amount of revenue.
While the administration has pointed to tariffs as a way to generate revenue and balance trade, others contend that tariffs will increase costs for families.
