Countries rush to make deals to avoid Trump's new tariffs as world economy braces for impact: Live updates
After a week-long delay, which pushed past his self-imposed 1 August deadline, the new rates came into force just after midnight on Thursday. Writing on Truth Social, Trump exclaimed in block capitals: 'It's midnight!!! Billions of dollars in tariffs are now flowing into the United States of America.'
The increase in import taxes on dozens of countries comes as the economic impact of his months-long tariff threats begins to visibly harm the U.S. economy. Americans are expected to pay an average of 18.3 percent more for imported goods – the highest rate since 1934, according to the Budget Lab at Yale, a non-partisan policy research center.
The Trump White House remains confident that businesses will increase investments and hiring, rebalancing the U.S. economy as a manufacturing powerhouse. However, signs of self-inflicted wounds emerge as companies and consumers brace for the impact of new taxes.
Good morning
President Donald Trump's long-awaited tariffs on goods imported into the U.S. are now officially and fully in effect, more than four months after his 'Liberation Day' announcement on April 2.
Rates ranging from 10% to 50% on dozens of trading partners took effect on Thursday, testing his strategy for reducing U.S. trade deficits without causing major disruptions to global supply chains, higher inflation, or stiff retaliation from trading partners.
U.S. Customs and Border Protection started collecting the higher tariffs at 12:01 a.m. ET after weeks of suspense over Trump's final tariff rates and frantic negotiations with major trading partners to try to lower them.
Goods loaded onto U.S.-bound vessels and in transit before the midnight deadline can qualify for lower prior tariff rates before October 5, according to a CBP notice to shippers issued this week. Imports from many countries had previously been subject to a baseline 10% import duty after Trump paused higher rates announced in early April.
Since then, Trump has frequently adjusted his tariff plan, increasing rates for some countries to much higher levels, including 50% for goods from Brazil, 39% from Switzerland, 35% from Canada, and 25% from India. On Wednesday, he announced a separate 25% tariff on Indian goods to be enforced in 21 days, related to the South Asian country's purchases of Russian oil.
Ahead of the deadline, Trump praised the "billions of dollars" that will flow into the U.S., mostly from countries he said had taken advantage of the United States.
Oliver O'Connell7 August 2025 14:58
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