Here's what you should know about US President Donald Trump's new tariffs
The new tariff regime will not go into effect Friday, as expected. Instead, the tariffs will be implemented on August 7 to give US Customs and Border Protection sufficient time to make the necessary changes to collect the new duties.
The 'universal' tariff for goods coming into the US will remain at 10 per cent, the same level that was implemented on April 2.
But that 10 per cent rate will apply only to countries with which the US has a trade surplus – countries to which the US exports more than it imports. That applies to most countries, a senior administration official said.
A 15 per cent rate will serve as the new tariff floor for countries with which the US has a trade deficit. About 40 countries will pay that new 15 per cent tariff.
That tariff will be lower for many of those nations than the April 2 'reciprocal' tariffs, but it will be higher for a handful.
More than a dozen countries have tariff rates that are higher than 15 per cent, either because they agreed to a trade framework with the US or because Trump sent their leaders a letter dictating a higher tariff. The official said those countries have among the highest trade deficits with the US.
The new trade policy also establishes a 40 per cent additional penalty on so-called transshipments. Those are goods that are shipped from a high-tariff country to a low-tariff country and then re-shipped to the US.
The US already imposes penalties and fines for goods that Customs and Border Protection agents deem to be transshipped. The 40 per cent will come on top of that, a senior administration official said.
Trump signed an executive order increasing the tariff rate on Canadian goods that aren't exempt from the USMCA free-trade agreement from 25 per cent to 35 per cent. The higher tariff rate will go into effect on Friday local time.
A senior Trump administration official described conversations with Canada surrounding fentanyl and tariffs on products in their country as less constructive than with Mexico, which received a 90-day pause on higher tariffs.
Ontario Premier Doug Ford said the higher tariff rate is 'concerning,' especially with other tariffs still in place. And the president and CEO of Canada's Chamber of Commerce called the statement released by the White House tonight 'more fact-less tariff turbulence.'
Changes in tariffs
On April 2, President Donald Trump declared a US economic emergency and announced tariffs of at least 10 per cent across all countries, with rates even higher for 60 countries or trading blocs that have a high trade deficit with the US. He deemed it 'Liberation Day'.
Tonight, the president announced adjustments to some of those reciprocal tariffs ahead of his midnight deadline.
Here's what is different:
Angola: 32 per cent to 15 per cent
Bangladesh: 37 per cent to 20 per cent
Bosnia and Herzegovina: 35 per cent to 30 per cent
Botswana: 37 per cent to 15 per cent
Brunei: 24 per cent to 25 per cent
Cambodia: 49 per cent to 19 per cent
Cameroon: 11 per cent to 15 per cent
Chad: 13 per cent to 15 per cent
Côte d`Ivoire: 21 per cent to 15 per cent
Democratic Republic of the Congo: 11 per cent to 15 per cent
Equatorial Guinea: 13 per cent to 15 per cent
European Union: 20 per cent to 15 per cent (for most goods)
Falkland Islands: 41 per cent to 10 per cent
Fiji: 32 per cent to 15 per cent
Guyana: 38 per cent to 15 per cent
India: 26 per cent to 25 per cent
Indonesia: 32 per cent to 19 per cent
Iraq: 39 per cent to 35 per cent
Israel: 17 per cent to 15 per cent
Japan: 24 per cent to 15 per cent
Jordan: 20 per cent to 15 per cent
Kazakhstan: 27 per cent to 25 per cent
Laos: 48 per cent to 40 per cent
Lesotho: 50 per cent to 15 per cent
Libya: 31 per cent to 30 per cent
Liechtenstein: 37 per cent to 15 per cent
Madagascar: 47 per cent to 15 per cent
Malawi: 17 per cent to 15 per cent
Malaysia: 24 per cent to 19 per cent
Mauritius: 40 per cent to 15 per cent
Moldova: 31 per cent to 25 per cent
Mozambique: 16 per cent to 15 per cent
Myanmar: 44 per cent to 40 per cent
Namibia: 21 per cent to 15 per cent
Nauru: 30 per cent to 15 per cent
Nigeria: 14 per cent to 15 per cent
North Macedonia: 33 per cent to 15 per cent
Pakistan: 29 per cent to 19 per cent
Philippines: 17 per cent to 19 per cent
Serbia: 37 per cent to 35 per cent
South Korea: 30 per cent to 15 per cent
Sri Lanka: 44 per cent to 20 per cent
Switzerland: 31 per cent to 39 per cent
Taiwan: 32 per cent to 20 per cent
Thailand: 36 per cent to 19 per cent
Tunisia: 28 per cent to 25 per cent
Vanuatu: 22 per cent to 15 per cent
Vietnam: 46 per cent to 20 per cent
Zambia: 17 per cent to 15 per cent
Zimbabwe: 18 per cent to 15 per cent
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