President Donald Trump’s “reciprocal tariffs” affecting more than 90 countries took effect July 31, 2005, reshaping global trade dynamics. The tariffs ranged from 10% to 50% on imports from countries without special trade deals.
New tariffs rates
Some countries negotiated tariff rates that are lower rates than initially threatened:
The EU (15%), Japan (15%), South Korea (20%), Vietnam (20%), and the U.K. (10%).
Countries that have not negotiated a deal with the United States were hit with higher rates:
Brazil (50%), Canada (35%), Switzerland (39%), Laos (40%) and Algeria (30%) saw increases.
India and several others remain outside deals and face high default tariffs.
· The countries and rates are listed in the annex to the executive order.
Economic impact
Commerce Secretary Howard Lutnick said the tariffs could raise $50 billion a month in revenue.
Economists warned of the risk of rising inflation on U.S. consumers.
Geoeconomic impact
Trump’s tariffs are reshaping global trade and using them as leverage on issues beyond trade, particularly against Brazil, which Trump has criticized for its prosecution of former Brazilian President Jair Bolsonaro.
Legal challenges remain
The tariffs are under legal challenges for exceeding executive authority under the International Emergency Economic Powers Act of 1977. A New York trade court sided against Trump, but allowed tariffs to stay in place pending appeal.