President Donald Trump’s sweeping tariffs have taken effect, reaching nearly every U.S. trading partner and reshaping the global trade landscape, The New York Times reported Aug. 7.
Here are six things to know:
- Major U.S. trading partners including the European Union, Japan and South Korea will face a 15% tariff on exports; they all recently struck trade agreements. Nations that have not made a deal, including Taiwan, Brazil and Canada, face steeper duties.
- President Trump said Aug. 6 that he would double tariffs on imports from India to 50% beginning in August as a tactic designed to pressure the country to purchase less Russian oil. Under a new executive order, India would face a 25% tariff starting Aug. 27 if it continues to buy oil from Russia, which is in addition to a 25% duty President Trump plans to implement Aug. 7.
- The steepest tariff rates will affect countries President Trump has targeted as a form of geopolitical punishment. He placed a 50% tariff on some goods from Brazil, saying it is a punitive tax for the country’s decision to prosecute former President Jair Bolsonaro.
- The highest tariff for a developed nation has gone into effect for Switzerland, with a levy of 39%. Swiss President Karin Keller-Sutter is set to join an emergency meeting in Europe on Aug. 7 to address the higher levy, according to the Times.
- The U.S. and China remain in an unsteady truce with respect to tariffs. The current 90-day pause on trade between the countries was reached in May and is set to expire Aug. 12. Without an extension, U.S. tariffs on Chinese imports and Chinese tariffs on U.S. goods would go back to triple-digit levels.
- On Aug. 6, President Trump also said a 100% tariff could be imposed on semiconductors coming into the U.S. The levy would apply to all countries and companies unless businesses commit to building in the U.S. Pharmaceuticals are also set to see a higher tariff rate, after President Trump said rates could reach as high as 250%. In addition, he doubled Section 232 tariffs on steel and aluminum from 25% to 50%; they went into effect June 4.
