Trump tariffs: Where do we stand after new levies unveiled – DW – 08/01/2025

DW

20 hours ago

Just hours before an Aug. 1 deadline expired, US President Donald Trump imposed sweeping new tariffs on imports from global trading partners, escalating an aggressive trade policy aimed at reducing the US trade deficit.
In his election campaign, Donald Trump once said that "tariff is the most beautiful word in the dictionary." Now, after six months in office, the US president is eager to turn his very specific vision of global trade into reality.
With a move that shocked both politics and business across the world, Trump announced on April 2 that he would impose a "baseline tariff" of 10% on all goods imported to the United States.
In addition, goods from about 60 other trade partners would face so-called reciprocal tariffs that were even higher and meant as payback for the unfair trade policies of what Trump called "the worst offenders."
However, on July 31 Trump signed an executive order again imposing new, and even higher tariffs on scores of countries, citing emergency powers he said he is using to shrink the country's trade deficits with many of its trade partners.
The executive order lays out rates to be applied against nearly 70 countries, ranging from 10% to 41% for goods transshipped through other jurisdictions to avoid US duties.
In a minor reprieve that opens the door to further negotiations, the White House said the measures will take effect next week for most countries.
The order came after a flurry of tariff-related activity in previous weeks that saw some countries strike more favorable terms for trade with the US.On July 27, the US and the European Union agreed that European goods imported to the US would face a 15% baseline tariff. This includes the EU's crucial automobile sector, which had been subject to a 25% levy since Trump took office earlier in January.
By contrast, the EU will charge US firms no duties at all, and has pledged to buy US energy worth $750 billion (€656 billion), as well as make investments in the US of around $600 billion, according to the White House.
The agreement, which still needs to be signed off by all 27 EU members, has already come under strong criticism. French Prime Minister Francois Bayrou said this week the EU had capitulated, describing Sunday as a "dark day."
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The United Kingdom was the first country to strike a trade deal with Washington in May.
British products will be subject to a 10% base rate, with exceptions for some industries. The UK is still negotiating exemptions for its steel and aluminium products from the 25% rate in force. In return, the UK had to open its market further to US ethanol and beef.
Under a deal struck in July, Japan's exports to the US will be taxed at 15%, including automobiles, an industry accounting for 30% of Japanese exports to the US in 2024.
Tariffs of 50% on Japanese steel and aluminium will continue to apply and the White House said that under the deal, Japan would make an unspecified $550 billion investments in the US.
With regard to South Korea, recent negotiations have resulted in a 15% baseline tariff on all imports from that country — down from a threatened 25% for one of the US's top-10 trading partner and key Asian ally.
Trump said Wednesday that South Korea had also agreed to invest $350 billion in US projects and to purchase $100 billion of liquefied natural gas and other energy products.
Furthermore, South Korea will accept American products, including automobiles and agricultural goods into its markets and impose no import duties on them, he added.
Washington has also concluded trade deals with the Philippines, Vietnam, Indonesia and Pakistan.
Products from the Philippines — a major exporter of high-tech items and apparel — will face a 19% levy. Vietnam was able to lower a threatened reciprocal tariff of 49% under a deal reached in early July. A main exporter of clothing and shoes to the US, Vietnam will see its shipments subject to a 20% tariff.
Indonesian exports to the US will be taxed at 19% and, according to Washington, nearly all US goods will be able to enter Indonesia tariff-free.
Pakistan, which was facing a potential 29% tariff under Trump's April 2 announcement, said Thursday it had struck a deal that would result in lower tariffs, as well as an agreement in which Washington would help develop the country's oil reserves.
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China — the world's second-largest economy — is a special case. Washington and Beijing had raised tariffs on each other's goods to more than 100% before temporarily lowering rates for a 90-day period. That pause is set to end on August 12.
China has taken an aggressive stance in response to Trump's brief threat of imposing a 145% levy on imports, retaliating with tariffs of its own on US goods and blocking the sale of vital rare earth minerals and components used by American defense and high-tech manufacturers.
Countries without bilateral trade agreements will soon face reciprocal tariffs ranging from 25% to 50%, with a baseline of 15% to 20% for any not making a deal.
Among the tariff levels adjusted in Trump's latest order, Switzerland now faces a higher 39% duty. The Swiss government said Friday it would negotiate to avoid the higher levy, which will potentially hammer its key pharmaceutical industry. The new rate is up from the 31% previously threatened.
Brazil is one of the few major economies to run a trade deficit with the United States, meaning Brazil imports more from the US than it exports to the country.
Nevertheless, the US president has threatened to impose a 50% tariff on Brazil's products because of political differences. Trump called a current trial against former Brazilian President Jair Bolsonaro a "witch hunt," and has demanded the release of the ultraconservative politician.
Brazil's current president, Luiz Inacio Lula da Silva, has in turn called Trump an "emperor" and said he didn't fear publicly criticizing Trump.
India, meanwhile, has drawn Trump's ire for its huge trade surplus with the US and its trade ties with Russia.
As a result, Trump announced on Wednesday that he would impose a 25% tariff on Indian goods, plus an additional "penalty" because of India's purchase of Russian oil that helps Moscow finance its war in Ukraine.
On his Truth Social platform, Trump also wrote that India "is our friend," but added its tariffs on US products "are far too high."
Canada and Mexico — two of the US' biggest trading partners — haven't been spared Trump's tariff threats either, even though trade between the three neighbors is governed by the US-Mexico-Canada (USMCA) trade agreement, negotiated during Trump's first term in office.
Earlier this month, Trump threatened to raise current tariffs on Mexico from 25% to 30% starting on Aug. 1, saying President Claudia Sheinbaum's government hadn't done enough to help secure their shared border.
Many goods certified under the USMCA free-trade pact, however, have remained exempt.
On Thursday, the US president extended Mexico's current rates for 90 days to allow more time for trade negotiations.
"The complexities of a Deal with Mexico are somewhat different than other Nations because of both the problems, and assets, of the Border, Trump said in a Truth Social post, following a call with Sheinbaum.
On Thursday, the US president singled out Canada for a separate tariff hike raising levies for goods from the country fom 25% to 35% starting on Aug. 1.
Trump also warned of more trade consequences for Canada after Prime Minister Mark Carney announced plans to recognize a Palestinian state. Trump's order also cited Canada's failure to "cooperate in curbing the ongoing flood of fentanyl and other illicit drugs" as well as its "retaliation" against his measures.
In March, Washington already imposed a 25% tariff on Canadian cars and auto parts, adding a 50% levy on steel and aluminium imports in June.