WASHINGTON — In a bold escalation of U.S. trade policy, President Donald Trump signed an executive order on July 31 introducing sweeping new tariffs on imports from countries across the globe. The move aims to bolster domestic manufacturing and sends a strong message to global trading partners.
In a separate action, Trump also increased tariffs on Canadian goods from 25% to 35%.
These new reciprocal tariffs will take effect in seven days—just ahead of the August 1 deadline Trump had set for roughly 180 countries to either strike new trade agreements with his administration or face higher U.S.-imposed tariffs. The updated 35% tariff on Canadian imports kicks in on August 1.
Trump has kept a baseline 10% tariff in place for about 100 countries where the U.S. exports more goods than it imports.
The executive order covers 70 additional countries.
According to a senior White House official, 40 countries that export only slightly more to the U.S. than they import will now face a 15% tariff. Thirty other countries with larger trade deficits—like Laos and Myanmar—will see rates up to 40%, while Syria faces the highest at 41%.
Imports governed by the United States-Mexico-Canada Agreement (USMCA), which Trump brokered during his first term, remain exempt from the new Canadian tariff. Trump has justified the Canada-specific increase as a response to the flow of fentanyl from the country into the U.S.
To see the full list of new tariff rates click here.
Tariffs, essentially taxes on imported goods paid by businesses, often result in higher prices for consumers. Economists have raised concerns about potential inflationary effects. However, Trump and his advisors argue that relatively flat inflation since his return to office disproves such warnings.
Previously, Trump had already announced new tariff deals with several countries, setting rates for Japan (15%), Vietnam (20%), Indonesia (19%), and the European Union (15%).
Trump also recently announced plans to add a 25% tariff to Indian imports, a move that could affect a range of everyday consumer goods.
Notably absent from the new order are two of the U.S.’s largest trading partners—China and Mexico.
Trump and Chinese officials are reportedly considering an extension of the 90-day tariff truce agreed upon in May, which paused the imposition of significant, triple-digit tariffs.
As for Mexico, Trump announced on July 31 that the country will be given another 90 days to finalize a long-term trade deal. In the meantime, Mexican goods will continue to face a 25% tariff, imposed in response to fentanyl trafficking concerns.
A set of even steeper “reciprocal” tariffs, originally announced by Trump on April 2 but paused for 90 days due to market volatility, were scheduled to resume on July 9. However, Trump extended the deadline to August 1 to allow more time for ongoing negotiations.
During the pause, most imports were subject to a standard 10% tariff.
Trump’s approach to trade policy has been marked by unpredictability—frequently announcing tariffs only to walk them back, a pattern that’s earned him the Wall Street nickname “TACO trade,” short for “Trump Always Chickens Out.”
This time, however, Trump made it clear: his August 1 deadline was firm—and now, he’s followed through.
