Trump releases new tariff rates for 69 countries; India's unchanged
What's the story
United States President Donald Trump has signed a new executive order stating that items imported from all countries will be subject to a 10% tariff, with the exception of goods from 92 countries that will face higher tariffs. The order, which raises import duties from 10% to 41% for 69 countries, would start in seven days. Under the new tariff structure, India will continue to bear a 25% import duty, while Pakistan's rate has been reduced from 29% to 19%.
Trade focus
US tariffs on goods from countries not mentioned in annex
The executive order says that some trading partners, "despite having engaged in negotiations, have offered terms that, in my judgment, 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." "There are also some trading partners that have failed to engage in negotiations with the United States or to take adequate steps to align sufficiently with the United States on economic and national security matters."
Tariff changes
Canada hit with increased fentanyl-related tariffs
The Trump administration has also issued a separate order for Canada, increasing fentanyl-related tariffs from 25% to 35%. This comes after accusations of Canada's failure to curb fentanyl flows into the US. Meanwhile, Mexico has been granted a 90-day extension on higher tariffs of 30% on several goods as negotiations continue under the US-Mexico-Canada Agreement (USMCA). Under the USMCA deal, a wide range of commodities are eligible for duty-free treatment if they meet the rules of origin.
Other countries
Brazil and South Korea's tariff negotiations revealed
Brazil has been hit with a 50% tariff on certain goods, although aircraft, energy and orange juice are exempted. South Korea has agreed to a 15% tariff on its exports to the US after negotiations. This comes with a $350 billion investment pledge in US projects chosen by Trump. Some of the world's poorest and most war-torn countries have been slapped with punitive rates, including Syria (41%), Laos and Myanmar (40%), Libya (30%), Iraq (35%), and Sri Lanka (20%).
Others
China faces separate deadline for increased tariffs
Switzerland faces a rate of 39%, while China faces a separate deadline for increased tariffs on August 12, with an extension to the truce agreed in principle but not yet accepted by the White House. By July 31, only eight countries or economic blocs had secured formal agreements with the White House: the United Kingdom, Vietnam, Indonesia, the Philippines, South Korea, Japan, Pakistan, and the European Union.