Are you tired of hearing about tariffs? You’re not alone. I, too, am exhausted from trying to keep up with the constant trade talks and last-minute delays that have dominated the news cycle since President Donald Trump took office.
But the good news is that we can finally take a breath (at least for now). On Thursday, Trump announced a new round of tariffs that will soon impact trade partners of all sizes.
Originally set to go into effect today, the tariffs have been delayed until Aug. 7 after Trump revealed the full list of nations and their respective rates. The only exception is Canada, which saw an immediate increase to a 35% tariff rate today.
Trump has made it clear that there will be no extensions or grace periods. In addition to the one-week delay, Trump also announced a 90-day extension of the tariff pause for Mexico on his social media platform, Truth Social.
The most recent tariffs are the delayed versions of Trump’s “Liberation Day” reciprocal tariffs, which were first announced on April 1, then postponed for 90 days, and now extended once more to Aug. 1. During this period, international trade partners scrambled to negotiate deals.
Some countries, such as Britain, Vietnam, Japan, Indonesia, the Philippines, and the European Union, have managed to strike agreements to mitigate the impact. Others will have to deal with the consequences as they come.
What’s the status with the major trade partners?
Here are the tariff rates for some of the largest trade partners of the U.S.
-
European Union: 15% tariff, with some exceptions. Despite lobbying efforts, the E.U. will face a 15% tariff on wine and spirits, among other goods. The E.U. has also committed to purchasing energy-related goods worth $750 billion over three years and investing an additional $600 billion in the U.S.
-
Canada: 35% tariff, increased from 25%, effective immediately. Some products are exempt under the U.S.-Mexico-Canada Agreement (USMCA). Certain goods like energy products and potash not covered by the USMCA will incur a 10% tariff.
-
Mexico: A 90-day delay on a new 30% tariff (up from 25%), effective July 31. However, Mexico will still pay the existing 25% tariff on goods not included in the USMCA.
-
China: A 90-day truce with China is still in effect until Aug. 12. The two countries agreed to pause retaliatory tariffs, setting tariffs on Chinese imports at 30% (down from 145%) and U.S. exports at 10% (down from 125%). Negotiations for a trade deal are ongoing in Stockholm.
-
Japan: 15% tariff. After negotiations, Japan agreed to make $550 billion in U.S. investments and loans.
-
South Korea: 15% tariff. South Korea is required to establish a $350 billion investment fund and purchase $100 billion of liquefied natural gas under the agreement.
-
India: 25% tariff, reduced from 26%. India may face an additional penalty if it continues to purchase Russian oil.
How have other nations been impacted?
Most countries face a standard 15% tariff, with exceptions like Britain, which secured a 10% tariff deal on May 8.
The baseline tariffs are just the beginning, as individual nations may add their own tariffs on top of that rate unless they have a separate trade agreement in place.
Some countries are subject to higher tariffs than the baseline, including:
-
30%: Algeria, Bosnia and Herzegovina, Libya, and South Africa.
-
25%: Brunei, India, Kazakhstan, Moldova, and Tunisia.
-
20%: Bangladesh, Sri Lanka, Taiwan, and Vietnam.
-
19%: Cambodia, Indonesia, Malaysia, Pakistan, the Philippines, and Thailand.
Brazil will see a 40% tariff starting on Aug. 6, increasing its total rate to 50%.
What additional tariffs are currently in place?
-
Steel and aluminum: A 50% tariff was implemented on March 12, with household appliances and other steel derivative products added on June 23.
-
Automobiles and parts: A 25% tariff on automobiles was imposed on April 3, with a separate 25% tariff on auto parts starting on May 3. Tariffs on Japan-made vehicles were reduced to 15% on July 22.
-
Tomatoes from Mexico: A 17% tariff was implemented on July 14.
-
Copper: A 50% tariff was implemented today.
-
Transshipping: A 40% tariff is in place for countries attempting to avoid U.S. tariffs through other nations.
What other tariffs are coming up?
Trump recently moved to eliminate the de minimis exemption worldwide. This exemption, which allows businesses to avoid tariffs on low-value packages entering the U.S., has been in place since 1938. The expanded order will take effect on Aug. 29.
Additional tariffs are being considered for various goods, including lumber, pharmaceuticals, rare earth minerals, aircraft components, and trucks. The U.S. is also expected to reveal the outcome of its semiconductor and chip imports investigation by mid-August.