Trump's Tariffs Set to Take Effect This Friday
The Trump administration has been actively engaging in tariff negotiations with various countries since the "Liberation Day" announcement on April 2, 2025. While dozens of countries have agreed or offered to lower their tariff rates or eliminate non-tariff barriers, some important trading partners have yet to finalize new negotiated tariff rates.
In a positive development, several countries have successfully negotiated reduced tariff rates. The European Union and the UK, for instance, have agreed on new tariff rates of 15% and 10%, respectively. South Korea and the Philippines have negotiated rates of 15% and 19%, respectively, down from their previous rates of 25% and 20%. Indonesia and Vietnam have also secured new rates of 19% and 20%, respectively, lower than the previous rates of 32% and 46%.
However, major trading partners such as Mexico, China, and Canada have not finalized new tariff rates despite extensions to negotiate. As a result, these countries remain subject to the baseline tariff rate of 10% imposed in April or to higher rates due to no new agreement. Canada, in particular, has seen an increase from 25% to 35% tariffs as of August 1, 2025, due to lack of a negotiated reduction.
Thailand, Cambodia, and Pakistan have claimed to have reached new trade deals with the US, but the rates have not been publicly disclosed. Brazil has negotiated a new tariff rate of 50%, with exceptions on approximately 40% of products, up from the previous 10%.
The White House has indicated that many countries have agreed to lower or revised tariff rates, but not all have done so. The full list of countries without new negotiated tariffs has not been publicly detailed, but the absence of their names in the updated tariff letters and announcements is a key indication.
The Trump administration has set a deadline for new tariff rates on trading partners, which expires on Friday. It is expected that President Donald Trump will sign executive orders on Thursday to set new tariff rates for some countries that have not reached new agreements with the US. A hearing was held on Thursday regarding Trump's ability to use the International Emergency Economic Powers Act to impose the levies, with some judges casting doubt on this ability.
Moreover, a federal appeals court could potentially block the tariffs from taking effect on Friday. Trump has suggested that the baseline tariff rate for all trading partners could increase to as much as 20% on Friday.
In a surprising turn of events, Trump announced a pause on new tariffs against Mexico for another 90 days, with Mexico continuing to pay current rates of 25% for most products, 25% for cars, 50% on steel, aluminum, and copper until a new deal is announced.
Only nine countries have announced agreements with the Trump administration, far short of the goal of 90 deals in 90 days. White House Press Secretary Karoline Leavitt stated that countries without deals in place will be hearing from the administration by the midnight deadline on Friday.
The ongoing tariff negotiations and the impending deadlines have created a tense and uncertain environment in international trade. The outcome of these negotiations will have significant implications for global trade and economic relations.
- The ongoing policy-and-legislation discussions surrounding tariff rates are causing tension in international politics, as the Trump administration is yet to reach agreements with several key trading partners.
- The general-news headlines are filled with updates on the tariff-and-negotiation stalemate between the Trump administration and countries like Mexico, China, and Canada, potentially impacting global economic relations significantly.
