After promising no further extensions, President Trump’s tariffs will go into effect a week later than his self-imposed August 1 deadline, adding further uncertainty.
Key Facts
Trump’s order outlines updated tariff rates for 67 countries, the European Union and Taiwan, ranging between 10% and 41%.
Countries not listed in the order will face a baseline tariff rate of 10%—which is in line with Trump’s April 2 “Liberation Day” announcement.
The new order does not cover rates for China, which is still engaged in tariff negotiations with the U.S. government, and Mexico, which was given a 90-day extension on an earlier deal while trade talks with the U.S. continue.
It is unclear why the tariffs were pushed from August 1 to August 7, but this will likely heighten uncertainty for key trading partners, who now have an additional week to negotiate lower rates.
Syria, Laos and Myanmar will face the highest reciprocal tariff rates of 40 to 41% as per Thursday’s order.What Do We Know About The Tariffs On Canada?
Canada is one of the countries not mentioned in Trump’s reciprocal tariffs order. In a separate announcement, the White House said Canada will face a 35% tariff rate—up from an earlier 25%—for goods not covered under the United States-Mexico-Canada Agreement (USMCA). Unlike other tariffs that are labeled as “reciprocal” the White House claims the levies placed on Canada are in response to the flow of fentanyl and other illicit drugs across the northern border. The White House claims the levies on the northern neighbor have been raised because, “Canada has failed to cooperate in curbing the ongoing flood of fentanyl and other illicit drugs, and it has retaliated against the United States for the President’s actions.” In a statement responding to the higher tariffs, Canada’s Prime Minister Mark Carney expressed disappointment and said: “The United States has justified its most recent trade action on the basis of the cross-border flow of fentanyl, despite the fact that Canada accounts for only 1% of U.S. fentanyl imports and has been working intensively to further reduce these volumes.”What Are The Revised Tariff Rates And How Much Have They Changed?
The revised tariff are as follows:
Afghanistan: 15%, up from the 10% announced on “Liberation Day.”
Algeria: 30% same as “Liberation Day”
Angola: 15%, down from 32% announced on “Liberation Day.”
Bangladesh: 20% down from 37% announced on “Liberation Day.”
Bolivia: 15% up from the 10% announced on “Liberation Day.”
Bosnia and Herzegovina: 30% down from 35% announced on “Liberation Day.”
Botswana: 15% down from 37% announced on “Liberation Day.”
Brazil: 10% same as “Liberation Day,” but the country faces an additional 40% due to the ongoing criminal prosecution of Trump’s ally and the country’s former President Jair Bolsonaro.
Brunei: 25% up from 24% announced on “Liberation Day.
