Trump's new higher tariffs for Japan, others to take effect on Aug. 7
Trump's order, which threatens to disrupt the global trade system, came just hours before the planned expiration of his monthslong pause on sweeping tariffs targeting dozens of countries with which the United States runs trade deficits.
He was due to impose a broad set of country-specific higher tariffs on Friday as part of his campaign to revive American manufacturing, after pausing them for nearly four months to negotiate individual deals with key trading partners.
White House spokeswoman Karoline Leavitt said earlier in the day at a press conference, "Tomorrow, August 1, the reciprocal rates will be going into effect," as Trump had repeatedly suggested.
But following the disclosure of the executive order, the White House confirmed that the tariff rates will instead begin Aug. 7.
A White House official said the delay was created to provide "ample time" for customs authorities to fully implement the new tariffs. The existing duty rates remain in place until then.
Trump announced "Liberation Day" tariffs on April 2, before pausing them for 90 days to create time for negotiations.
His administration later extended the pause to Friday, since little progress was made in talks with major trading partners. But it managed to clinch deals before the deadline with some in recent weeks, including Indonesia, Japan, the Philippines, South Korea and the European Union.
The administration's baseline, or universal, tariff of 10 percent covering imports from almost all countries in the world, did not fall under the scope of the pause.
As for Japan, the United States will maintain the 10 percent tariff rate on many imports, excluding cars and other products covered by separate sectoral duties, until it begins imposing the 15 percent levy on Aug. 7.
Except for those subject to individual tariff rates, Trump's order said all others will face a 10 percent tariff rate, and it will also take effect on Aug. 7.
The order listed new tariff rates for about 70 countries and areas, many of which have yet to secure deals with the United States. Among those in Asia, Taiwan, a leading exporter of semiconductors, will be hit with a rate of 20 percent, Thailand with 19 percent, India with 25 percent and Laos with 40 percent.
Trump said in the directive that some "do not sufficiently address imbalances in our trading relationship or have failed to align sufficiently with the United States on economic and national security matters."
It said goods determined to have been transshipped to evade U.S. tariffs will be subject to a 40 percent duty plus an unspecified "fine or penalty."
It also said the new tariffs will not apply to goods that are loaded onto ships before Aug. 7 and enter the United States for consumption by Oct. 5.
Last week, the Trump administration reached a trade deal with Japan under which Trump's special tariff rate for the country was lowered to 15 percent from 25 percent in return for Tokyo committing to massive investments in the United States in the coming years.
As Japan promised to buy more energy and agricultural products from the United States, the agreement also resulted in Japanese autos being subject to a 15 percent tariff, down from the hefty 27.5 percent rate that took effect in April.
It remains unclear when the lowered 15 percent auto tariff will take effect, although Japan has sought its implementation as early as possible.
After Japan, the United States struck similar deals with the EU and South Korea, with each securing tariff rates of 15 percent for the reciprocal and auto tariffs.
The administration has decided to grant several other exceptions.
On Thursday, Trump said he will continue with the current 25 percent tariff on some Mexican goods imported into the United States for 90 days, holding off on the higher 30 percent tariff that he has threatened while the neighbors negotiate.
A separate Trump order issued in the evening raised Canada's tariff rate from 25 percent to 35 percent, beginning Friday.
With China, the United States has a different 90-day tariff truce that is set to expire Aug. 12. In May, the two countries suspended most of the hefty tariffs levied on each other's goods for that duration.
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