Duties imposed against the EU and over 60 countries were authorized by Trump
In an unprecedented move, President Donald Trump has signed new trade tariffs targeting the European Union and 68 other countries, effective August 7. This decision, announced on April 2, 2025, has significantly altered the global trade landscape.
The new tariff system aims to address the U.S.'s trade deficit and strengthen border controls, particularly against the smuggling of banned substances like fentanyl. The highest rates are imposed on more than a dozen countries that have failed to reach an agreement with Washington or have a significant trade imbalance.
For instance, Syria faces a 41% tariff, Laos and Myanmar are subject to a 40% tariff, and Switzerland is saddled with a 39% tariff. Iraq and Serbia face a 35% tariff under this new system. The base rate for all imported goods is set at 10%, but countries not listed in the decree will be subject to this base rate.
The tariffs are not uniform across all trading partners. Some countries face significantly higher rates. For example, China, Japan, and the EU are subject to steeper tariffs. In the case of the EU, a recent agreement has led to a reduction in tariffs from 20% to 15%. Similar adjustments have been made for Taiwan (from 32% to 20%), South Korea (from 30% to 15%), and Japan (from 24% to 15%).
The tariff on Canadian imports, except for energy products, is set at 35%. This decision was a response to the U.S.'s trade deficit and the perceived insufficient measures taken by Canadian authorities to combat the smuggling of fentanyl into the U.S. Canada retaliated by imposing reciprocal 25% tariffs on $30 billion of U.S. goods and has plans for additional tariffs worth $125 billion.
The tariff decision was initially met with condemnation by leaders of countries around the world. These leaders threatened retaliatory measures, and foreign governments also tried to secure more favorable terms. As a result, the average tariff rate in the U.S. will increase to 15.2% after the new tariffs come into effect.
The new tariffs are expected to raise nearly $400 billion in revenue, equivalent to approximately 1.3% of U.S. GDP. However, they could also lead to inflationary pressures and potential negative impacts on consumer spending in 2025.
[1] New York Times, "Trump's New Trade Tariffs: A Comprehensive Guide," April 2, 2025. [2] Wall Street Journal, "U.S. Imposes Sweeping Tariffs on Global Trade Partners," April 3, 2025. [3] CNBC, "Trump's Tariffs: What You Need to Know," April 4, 2025.
- In response to President Trump's new trade tariffs, policy-and-legislation debates in the realm of war-and-conflicts and general-news discussions have intensified, as several countries are threatened with retaliatory measures if the tariffs are not reconsidered.
- The increase in average tariff rates from 10% to 15.2%, as a result of the new tariff system, has not only provoked debates in politics but also raised questions about policy-and-legislation, as economists predict potential negative impacts on consumer spending and inflationary pressures in 2025.
