Trump's sweeping new tariffs against 90 countries take effect
What's the story
United States President Donald Trump's new set of tariffs on over 90 countries has come into effect. "It's midnight! Billions of dollars in tariffs are now flowing into the United States of America!" Trump announced on Truth Social minutes before the deadline. In another post, he said, "Reciprocal tariffs take effect at midnight tonight! Billions from countries that have taken advantage for many years will start flowing into the USA."
Tariff hike
India faces steepest increase in tariffs
India, which was initially facing a 25% tariff under the first tranche, has seen this increase to 50% with an additional 25%, which Trump imposed on Wednesday. The new tariff will come into effect on August 27. The White House justified this increase as necessary due to India's "direct or indirect import of Russian Federation oil."
Rate variation
Highest tariffs on goods from Brazil, Laos, Myanmar
Before Thursday, goods entering the US were subject to a minimum 10% tariff. Now, the rates differ by country. The highest tariffs are on goods from Brazil (50%), Laos (40%), Myanmar (40%), Switzerland (39%), Iraq (35%), and Serbia (35%). Meanwhile, Vietnam (20%), India (50% after a 21-day window), Taiwan (20%) and Thailand face levies over 15%.
Deals
Some countries have reached deal
Countries have been rushing to reach agreements with Washington to reduce - or scrap- what Trump labels "reciprocal tariffs" before the August 7 deadline. Some major economies, like the United Kingdom, Japan, and South Korea, have already reached agreements to negotiate lower tariffs than Trump warned in April. The European Union has also reached a framework agreement with Washington, under which Brussels has agreed to a 15% tariff on EU-produced goods.