Donald Trump signs executive order imposing up to 41% tariffs on imports; India, Canada, Taiwan, South Africa hit hard

Mint

5 days ago

US President Donald Trump signed a sweeping executive order on Thursday imposing reciprocal tariffs ranging from 10% to 41% on American imports from a wide array of countries, dramatically reshaping the US trade landscape with less than 100 days until the presidential election.
The executive order would have new tariffs on a wide swath of US trading partners to go into effect in seven days — the next step in his trade agenda that will test the global economy and alliances.
The directive enforces varying tariff levels on dozens of trading partners based on the perceived imbalance in bilateral trade terms and their willingness to engage with the US on both economic and national security issues.
The order, issued on Thursday, builds on Donald Trump's earlier proclamation of a national emergency under Executive Order 14257, which declared that the United States' persistent trade deficits constitute "an unusual and extraordinary threat" to national security.
As per the new order, US-bound exports from India will now attract a 25% tariff, while Taiwan will face 20% and South Africa 30%. These new rates take immediate effect, with exceptions governed by existing trade frameworks.
In the most significant change, Canada will see its tariff rate increased to 35% from the previous 25% starting August 1, although goods covered under the United States-Mexico-Canada Agreement (USMCA) will remain exempt.
Several other nations have been hit with new levies under the updated tariff schedule:
Pakistan: 19%
Bangladesh and Vietnam: 20% each
Cameroon, Chad, Israel, Turkey, Venezuela, and Lesotho: 15% each
Switzerland: 39%, the steepest among all targeted countries
These adjustments come amid growing concern from US trade officials over what the White House terms a "continued lack of reciprocity in our bilateral trade relationships".
Despite earlier speculation that the baseline tariff might rise to 15% or higher, the White House confirmed that the minimum global tariff rate will remain at 10%, according to a fact sheet released Thursday.
The administration also revealed a detailed list of countries and their respective tariff rates. However, it remains unclear how many will receive the minimum 10% duty and how many will face higher rates.
Shortly before Friday deadline for the tariffs beginning, Trump said he would enter into a 90-day negotiating period with Mexico, one of the nation's largest trading partners, with the current 25% tariff rates staying in place, down from the 30% he had threatened earlier.
'We avoided the tariff increase announced for tomorrow and we got 90 days to build a long-term agreement through dialogue,' Mexican leader Claudia Sheinbaum wrote on X after a call with Trump that he referred to as 'very successful' in terms of the leaders getting to know each other better.
In his formal justification, President Trump said the move was guided by 'updated intelligence and recommendations from senior officials', adding that the aim is to correct imbalances and promote fair trade.
'Some trading partners have offered terms that, in my judgment, do not sufficiently address imbalances,' Trump stated.
Others, he added, 'have failed to engage in negotiations or to take adequate steps to align with the United States on economic and national security matters.'