Trump sets new tariffs on many countries' exports
India continues to face a 25 per cent tariff on its goods under the new order. However, the 'additional penalties' Trump had threatened over India's ongoing imports of Russian oil remain unspecified.
Trade negotiations between Washington and New Delhi have been taking place but are now reportedly stalled particularly over agricultural market access.
Pakistan, meanwhile, received a more favourable outcome. Having recently finalized a deal with the US on oil reserves, Islamabad's tariff rate has been reduced to 19 per cent, down from the 29 per cent reciprocal tariff imposed in April. Bangladesh's tariff has also been cut from 35 per cent to 20 per cent.
Among the most significant changes, Trump announced that tariffs on Canadian imports would increase from 25 per cent to 35 per cent starting tomorrow. However, the White House clarified that goods compliant with the United States-Mexico-Canada Agreement (USMCA) would be exempt, softening the broader economic impact.
The move is part of a broader Trump administration effort to implement 'reciprocal tariffs' on countries with which the United States runs a trade deficit. The executive order outlines a two-tiered structure: a 10 per cent tariff remains for countries with a US trade surplus, while a 15 per cent base rate now applies to those with a deficit — impacting around 40 nations. Some countries will face even steeper rates, ranging from 20 per cent to 50 per cent, depending on their trade balance or the status of ongoing negotiations.
The newly announced tariffs will take effect in seven days and apply to 69 countries. Specific rates include 41 per cent on Syrian imports, 35 per cent on select Canadian goods, 50 per cent on Brazil, 25 per cent on India, 20 per cent on Taiwan, and 39 per cent on Switzerland. Pakistan stands out as a notable outlier in South Asia, receiving the region's lowest tariff rate. The reduction follows Islamabad's rollback of a 5 per cent tax on foreign digital services.
While experts believe the 35 per cent blanket tariff on Canadian goods will affect only a limited portion of bilateral trade due to USMCA exemptions, the White House also issued a separate order increasing tariffs on fentanyl-linked Canadian goods from 25 per cent to 35 per cent.
Canada, the US's second-largest trading partner after Mexico, was accused of 'failing to cooperate' in curbing fentanyl inflows into the United States. In stark contrast, Mexico was granted a 90-day reprieve from a planned 30 per cent tariff on most non-automotive, non-metal goods, following a Thursday morning call between Trump and Mexican President Claudia Sheinbaum. However, tariffs on Mexican steel, aluminum, and copper will remain at 50 per cent, while non-USMCA-compliant goods will continue to face a 25 per cent duty, CNN reported.
Trump claimed Mexico had agreed to dismantle several non-tariff trade barriers, though the White House has not released specifics. Meanwhile, the President took a much tougher line on Brazil, slapping a 50% tariff on most imports amid tensions over the prosecution of Trump's close ally, former Brazilian President Jair Bolsonaro. Notably, sectors like aircraft, energy, and orange juice were spared.
South Korea struck a deal with US and accepted a 15 per cent tariff—down from a proposed 25%—as part of a broader agreement that includes a $350 billion investment pledge in US-based projects to be selected by Trump. Tariffs on Taiwan were set at 20%, while Cambodia and Thailand will each face a 19 per cent duty. South Africa has been hit with a 30 per cent tariff, and Turkey with 15 per cent.
The 39 per cent duty on Swiss goods has already triggered a decline in the Swiss franc against the US dollar. The administration clarified that countries not specifically named in the order's annex will face a default tariff rate of 10 per cent, CNN reported.
Notably, the increased tariffs on Canadian goods from 25 per cent to 35 per cent came shortly after Canada's formal recognition of Palestine as an independent state. While not cited in the official statement, analysts suggest the move may have influenced Washington's decision.
President Trump defended the measures as essential to correcting long-standing trade imbalances and protecting national and economic security. 'Despite negotiations, some trading partners have failed to address imbalances in our trading relationship,' the executive order stated. A senior administration official added, 'We have some deals, but we'll let the President make those announcements,' he said.
UNI AAB PRS RB
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Economic Times
8 minutes ago
- Economic Times
Trump's tactics a negotiation play, not a policy shift: Richard Redoglia
"You may see IOC and other state-owned refiners scale back their Russian imports. But the bigger picture is that Trump is juggling many priorities at once. In this case, I believe he's applying pressure on Russia through India," says Richard Redoglia, CEO, Matrix Global Holdings. ADVERTISEMENT What is your own sense? While we do not have any benchmark for where this is ultimately headed, India's response so far has been very pragmatic, one must say. Richard Redoglia: Very pragmatic indeed. India needs to import oil—that's its necessity. Its job is to ensure a stable energy supply for its people. The largest refinery, Reliance, is a privately held company. So, it will import oil from any source it can. Russian oil has been available at a discount, and the specific type of oil it imports is important to its remember, Trump is negotiating—he's always dealing, always in motion. What your previous two guests said is quite interesting: first, the stock market has closed at record highs; second, the EU felt taken to the cleaners on the last deal. So, we're in a situation where I believe this is more about negotiation—using India, and I mean this respectfully, as a pawn in Trump's broader efforts to end the war in Ukraine. That's what we're seeing here. You may see IOC and other state-owned refiners scale back their Russian imports. But the bigger picture is that Trump is juggling many priorities at once. In this case, I believe he's applying pressure on Russia through India. Given the growing threats from Donald Trump, if they actually materialize, do you believe global investors might start repricing geopolitical risk in India and other emerging markets? And how could that impact India's overall trade with the West? Richard Redoglia: A very good point was made earlier. I think India will stand its ground for the time being. I don't see any immediate change. Again, I'll emphasize that Trump is negotiating in real time. He tweets in real time.I believe—unless I'm mistaken—I saw a report that IOC announced it would reduce Russian oil imports temporarily. Remember, oil shipments from Russia take about 35 days to arrive, whereas oil from the Middle East takes just 10 to 15 days. There's also excess capacity in the Middle East, which is a key factor here. ADVERTISEMENT So, the issue isn't just about Russian oil. The global oil market is dealing with overcapacity, which puts downward pressure on prices. When you talk about repricing risk and evaluating India, I'd say—perhaps I'm wrong—but this feels like a flash in the pan. It's likely to pass in a few recently, Iran was attacked. That's already in the rearview mirror. Oil was at $78 then, and now it's trading around $65–66. Markets recover quickly. They are efficient at repricing, especially in commodities. The fact that the U.S. stock market is at all-time highs and the oil market appears to be in balance suggests that what we're witnessing now is simply a negotiation. That's the lens through which we should view it. ADVERTISEMENT Having lived in New York for 20 years while Donald Trump was a real estate developer, I've learned to take what he says with a grain of salt. And increasingly, the market is doing the same. The bigger question is: where do you see the dollar heading? Because that, in itself, could dictate global capital flows. Do you think portfolios are now easing out of U.S. exposure? Richard Redoglia: That's a fair point. But again, when stock markets are hitting record highs, how much does the dollar really matter? The dollar is likely to weaken. The latest employment report showed some softness, which suggests we may see a rate cut in September, and possibly another by year-end. ADVERTISEMENT So yes, the dollar may face pressure. But isn't this part of a broader picture? Isn't this a larger re-evaluation of how the market perceives everything?Trump's goal—at least what he says—is free trade. He's putting tariffs in place to draw people into the U.S. market, but the broader aim seems to be enhancing the ability for global transactions. That's the underlying intent. ADVERTISEMENT As for the dollar—and this might sound controversial—I'd say it doesn't matter much right now. Oil prices are in balance. What matters more is that Trump appears to be negotiating for peace in various parts of the world. That, in my view, should be the key focus for the markets. (You can now subscribe to our ETMarkets WhatsApp channel)
United News of India
11 minutes ago
- United News of India
Philippines President receives ceremonial welcome at Rashtrapati Bhavan
New Delhi, Aug 5 (UNI) Philippines President Ferdinand Romualdez Marcos Jr was accorded a ceremonial welcome at the forecourt of Rashtrapati Bhavan today, marking the start of his five-day state visit to India. On his arrival at Rashtrapati Bhavan, Philippines President was received by President Droupadi Murmu in the presence of Prime Minister Narendra Modi. This is President Marcos Jr.'s first official visit to India since assuming office in 2022. His visit carries added significance as it coincides with the 75th anniversary of the establishment of diplomatic ties between India and the Philippines. During the ceremonial reception today, President Marcos was also accorded a guard of honour. Accompanied by first lady Louise Araneta Marcos and a high-level delegation that includes several Cabinet ministers, President Marcos arrived in New Delhi yesterday. Upon his arrival, he was warmly received by Minister of State for External Affairs Pabitra Margherita. "India & the Philippines are celebrating the 75th anniversary of the establishment of diplomatic ties. This visit will lead to further strengthening of India-Philippines relations," the Ministry of External Affairs (MEA) posted on X. The Philippines President met External Affairs Minister S Jaishankar in the national capital yesterday and said that he is confident that the bilateral talks between PM Modi and Philippines President will significantly deepen the bilateral partnership. Several dignitaries, including External Affairs Minister Jaishankar and Union Education Minister Dharmendra Pradhan, were present at the occasion. President Marcos is scheduled to lay a wreath at Rajghat, followed by formal bilateral talks with Prime Minister Modi at Hyderabad House. The leaders are expected to witness the exchange of key Memoranda of Understanding (MoUs) and deliver press statements. Later in the day, President Marcos will meet Union Health Minister JP Nadda and subsequently call on President Droupadi Murmu. He is also scheduled to travel to Bengaluru, where he will meet Karnataka Governor Thawar Chand Gehlot. Diplomatic relations between India and the Philippines were established in November 1949. Over the decades, the two countries have developed a robust partnership spanning trade and investment, defence and maritime cooperation, healthcare, agriculture, digital technologies, and education. India's ties with the Philippines form a key pillar of its Act East Policy and its broader Indo-Pacific strategy. President Marcos' visit in India at the invitation of PM Modi is expected to elevate bilateral ties and open new avenues for strategic cooperation between the two democratic and maritime neighbours. UNI AAB PRS
Time of India
11 minutes ago
- Time of India
Market not taking Trump threats seriously; glad India is standing its ground: Vandana Hari
Tired of too many ads? Remove Ads , Founder & CEO,, says crude oil prices are declining. The market is seemingly unconcerned about Donald Trump's recent threat. India's continued oil purchases from Russia are a key factor. If India reduced its intake of 1.7-1.8 million barrels per day, it would create market instability. China might increase its intake, but not enough to offset India's current on the reaction we have seen so far from crude, which has been rolling downhill yesterday, and this morning as well, it tells me that the market is not taking Trump's threat seriously. Probably an input for the market is also the fact that India is standing its ground. Had India said that they are going to halt or reduce purchases of close to 1.7-1.8 million barrels per day, that would have been a major concern for the market as to where this 1.8 million barrels per day goes if India does not take it? Obviously, China could take a bit more. But I doubt it could take equal to what India has been absorbing from Russia or anytime soon and you would have seen prices spiking. So, the market does not seem to be taking it seriously and I am glad to note that India is standing its ground as well.: A major question is whether he will actually go ahead. What is the gap between his threats and his actually proceeding to impose such tariffs? First of all, there are double standards here. You alluded to him potentially doing the same for other buyers of Russian crude and mind you, there are refined products as well. So, there is China and Turkey aside from India when it comes to crude and the same countries as well as major importers like Brazil and South America when it comes to refined as far as optics goes, this is not looking good for Trump singling out India when there are all of these other countries which are importing crude as well. Now, if he does go ahead and impose 100% secondary tariffs on India which would mean that the US would charge 100% tariffs for goods exported by India, India has a few options. One is it can simply ignore and let things take their course that the trade supply chains and so on will reorganise and rearrange themselves around such could look to other markets too to place its goods or it could go into negotiations with the US. Now, of course, it is not for me to say which step India will take on this but from all the signs that we can read, as of now India is saying it is standing its ground and that it will probably take steps or respond as and when the next step from the US becomes clear. There is no point making major shifts in things like crude imports based on guesswork or speculation.
