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- Canada: 35% on many goods.
- Brazil: 50%.
- India: 25%.
- Taiwan: 20%.
- Switzerland: 39%.
- Mexico: 30% tariff increase delayed (90-day reprieve).
- Other countries (not listed): 10% default tariff.
The order notes that even partners who negotiated with the U.S. had “offered terms that…do not sufficiently address imbalances in our trading relationship”. In other words, Trump says the tariffs are “reciprocal” penalties for long-running trade deficits and security concerns. A separate order specifically targets Canada: it raises U.S. duties on Canadian imports linked to fentanyl from 25% to 35%, arguing that Ottawa “failed to cooperate” in stopping the drug. Canada’s Prime Minister Mark Carney replied on social media that Canada has made “vital progress” against fentanyl and will continue working with the U.S. to protect communities.
Canada and Mexico
The approach to Canada and Mexico was notably different. In Ottawa’s case, Trump did not grant any reprieve and instead announced a higher Canada tariff outright. (This follows earlier threats and letters to Prime Minister Carney on Canadian trade barriers.) By contrast, Mexico won a last-minute extension. After a Thursday phone call with Mexican President Claudia Sheinbaum, the U.S. postponed a planned 30% tariff on most Mexican goods for 90 days. Sheinbaum later posted that the call was “very good” and that the tariff hike had been “avoided” for now. Mexico’s economy ministry notes that about 85% of its exports to the U.S. already comply with USMCA rules and thus avoid the new fentanyl-related duties.
Trump said he would still keep a 50% tariff on Mexican steel, aluminum and copper and a 25% tariff on autos and other non-compliant goods. He also claimed Mexico had agreed to eliminate many “non-tariff trade barriers,” though he gave no details.
South Korea Deal and India Stalemate
Some countries reached deals to limit their tariffs. Notably, South Korea agreed to a new trade deal under which the U.S. will charge only a 15% tariff on most Korean exports (down from the 25% previously threatened). As part of the agreement, Seoul pledged to invest $350 billion in U.S. projects and to increase purchases of American energy products (about $100 billion worth). South Korean President Lee Jae Myung hailed the pact as a “big hurdle” cleared, saying it removed uncertainty and kept U.S. tariffs on Korea no higher than those faced by Japanese or EU competitors. Trump said Lee will visit the White House soon to finalize the deal.
By contrast, trade talks with India collapsed. U.S. officials said India will now face a 25% tariff on many exports, after New Delhi insisted on protecting its farmers from foreign competition. Indian leaders defended their labor-intensive farm sector, triggering political outrage at home and a fall in the rupee.
The tariffs affect most other U.S. partners as well. For example, Trump slapped a 50% duty on Brazilian imports this week, citing Brazil’s prosecution of Trump ally Jair Bolsonaro, though he exempted sectors like aviation, energy and orange juice from the hike. Earlier tariffs on Taiwan and Switzerland remain in force at 20% and 39% respectively. (Trump has indicated that other unnamed countries will face 15–20% tariffs if they fail to strike trade deals.)
Economic Impact and Reactions
Analysts warn these higher import taxes will likely push U.S. consumer prices up. Indeed, Commerce Department data show sharp price jumps in recently reported categories. In June, prices for home furnishings and durable household goods jumped 1.3% – the largest monthly increase since March 2022 – and prices of recreational goods and vehicles rose 0.9%, the biggest surge in over a year. Even clothing and footwear prices climbed by 0.4%. Those spikes, coming after modest May gains, suggest the tariffs are beginning to feed into inflation.
Financial markets also showed jitters. U.S. and European stock futures slipped on the news of broader tariffs, as investors worried about a new round of trade frictions. Companies that rely on imported parts may see higher costs, and the disruptions could ripple through supply chains if other countries retaliate.
Legal and Global Challenges
Mr. Trump’s tariff edict faces scrutiny at home. Last month a federal trade court held that his sweeping April tariffs likely exceeded his authority. This week, a panel of the U.S. Court of Appeals sharply questioned the administration’s legal rationale. Judges asked whether the 1977 International Emergency Economic Powers Act (IEEPA) — intended for wartime economic sanctions — can truly authorize such broad tariffs. One judge observed pointedly that IEEPA “doesn’t even say tariffs, doesn’t even mention them”. Opponents argue that only Congress can set import tax rates, a point underscored by the earlier trade court ruling that found the president’s orders likely exceeded executive power.
Despite the legal uncertainty, the White House suggests more deals may come. A senior U.S. official told reporters there are “some deals” still to be announced, but he would not get ahead of the President. At the same time, top officials are racing to extend the truce with China. Treasury Secretary Scott Bessent said he believes a durable U.S.-China tariff agreement is close, though “not 100% done,” and noted that negotiators have “pushed back quite a bit” in talks this week in Stockholm. China now faces an August 12 deadline to finalize that pact or face the return of steep tariffs.
Many observers note that Mr. Trump has made tariffs a central tool of his foreign policy. While the administration calls these “reciprocal” measures against unfair trade and illegal drug flows, critics warn that punishing multiple U.S. partners could backfire. For now, American consumers and exporters are bracing for the impact of a significantly reshaped trading landscape.
Sources: Official White House announcement and reporting by Reuters correspondents.
