Trump Signs Executive Order Imposing New Tariffs on US Trading Partners
WASHINGTON — President Donald Trump on Thursday signed an executive order that set new tariffs on a wide swath of U.S. trading partners to go into effect on Aug. 7 — the next step in his trade agenda that will test the global economy and sturdiness of American alliances built up over decades.
The order was issued shortly after 7 p.m. on Thursday. It came after a flurry of tariff-related activity in the last several days, as the White House announced agreements with various nations and blocs ahead of the president’s self-imposed Friday deadline.
Tarif Rates for Different Countries
After initially threatening the African nation of Lesotho with a 50% tariff, the country’s goods will now be taxed at 15%. Taiwan will have tariffs set at 20%, Pakistan at 19% and Israel, Iceland, Norway, Fiji, Ghana, Guyana and Ecuador among the countries with imported goods taxed at 15%. Switzerland would be tariffed at 39%.
Trump had announced a 50% tariff on goods from Brazil, but the order was only 10% as the other 40% were part of a separate measure approved by Trump on Wednesday.
Negotiations with Mexico
On Thursday morning, Trump engaged in a phone conversation with Mexican President Claudia Sheinbaum on trade. As a result of the conversation, the U.S. president said he would enter into a 90-day negotiating period with Mexico, one of the nation’s largest trading partners. The current 25% tariff rates are 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,” 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.
Other Countries and Tariff Rates
Trump said that Canadian Prime Minister Mark Carney had called ahead of 35% tariffs being imposed on many of his nation’s goods, but “we haven’t spoken to Canada today.” Trump separately on Thursday amended a previous order to raise the fentanyl-related tariff on Canada from 25% to 35%.
Trump reached a deal with South Korea on Wednesday, and earlier with the European Union, Japan, Indonesia and the Philippines. His commerce secretary, Howard Lutnick, said on Fox News Channel’s “Hannity” that there were agreements with Cambodia and Thailand after they had agreed to a ceasefire to their border conflict.
Trade Deficit with Mexico
U.S. Census Bureau figures show that the U.S. ran a $171.5 billion trade deficit with Mexico last year. That means the U.S. bought more goods from Mexico than it sold to the country.
The imbalance with Mexico has grown in the aftermath of the USMCA, as it was only $63.3 billion in 2016, the year before Trump started his first term in office.
Conclusion
In conclusion, the new tariffs imposed by President Trump will have a significant impact on the global economy and the trade relationships between the US and its trading partners. The tariffs are set to go into effect on August 7, and it remains to be seen how the affected countries will respond.
FAQs
Q: What is a tariff?
A: A tariff is a tax imposed on goods imported into a country.
Q: Which countries will be affected by the new tariffs?
A: The new tariffs will affect a wide range of countries, including Mexico, Canada, China, and many others.
Q: What is the purpose of the tariffs?
A: The purpose of the tariffs is to protect American industries and jobs, and to reduce the trade deficit with other countries.
Q: How will the tariffs affect the global economy?
A: The tariffs are likely to have a significant impact on the global economy, potentially leading to higher prices, reduced trade, and economic slowdown.
