Imposed fresh tariffs on 69 nations by the United States
Under President Donald Trump's administration, a series of Revised Retaliatory Tariffs have been imposed on various countries, affecting global trade significantly. As of August 8, 2020, these tariffs range primarily from 10% up to 50%, depending on the country and ongoing trade negotiations.
The tariffs, announced on April 2, 2020, stem from concerns over trade imbalances. The executive order imposing these tariffs covers 68 countries, including the 27-member European Union, and regions without prior tariff negotiations face potential export taxes as high as 50%.
One of the most significant changes is the 15% tariff on most products imported from the European Union, down from a previously threatened 30%, with some agricultural products exempted. Meanwhile, the United States and the European Union are conducting separate negotiations regarding their trade relationship.
In a notable move, China is not included in the list of countries affected by the tariffs, as the US is conducting separate negotiations with it. China, the main trading partner of the USA, has withstood tariffs initially at 145% and is currently in negotiations with Washington about what will happen next.
Among the countries targeted with the highest tariffs by Trump, only Switzerland is a significant trading partner for the US, exporting goods worth $63.4 billion to the United States last year. Switzerland received the highest tariffs in Europe at 39%.
Other countries affected by these tariffs include Brazil, which initially faced a 50% tariff but was later listed with 10%, Mexico (with 30% tariffs, though the USMCA exemption means most goods from Mexico remain tariff-free), Canada (with 35% tariffs), India (with 25% tariffs), and Indonesia (with tariffs reduced from 32% to 19%).
The tariffs have become a significant source of federal revenue, raising billions to date. Some countries, like Vietnam, have agreed to reduce import tariffs on most of their goods from 46% to 20%. Other countries, such as Japan, the Philippines, and Laos and Myanmar, have also agreed to reduce import tariffs on their goods.
However, not all tariffs have been implemented immediately. Donald Trump postponed the introduction of high tariffs on imports from most countries until August 1, after initially announcing them at the beginning of April. The "Revised Retaliatory" tariffs will come into effect in seven days, with the exception of Canada, where they will take immediate effect.
A separate provision in Trump's order addresses attempts to avoid high tariffs by exporting goods to the US through third countries. Such goods are subject to a 40% tariff if discovered by US customs.
These tariffs have created a complex, tiered system of tariffs focused on reciprocal trade imbalances, with rates ranging primarily from 10% up to 50%, depending on the country and ongoing trade negotiations. The current state of global trade under these tariffs is a subject of ongoing discussion and observation.
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- The tariffs, primarily ranging from 10% to 50%, have significantly affected various industries, including finance and business, as they have been imposed on numerous countries under President Trump's administration.
- The relaxation of tariffs on the European Union and other countries, such as Vietnam and Japan, has had a direct impact on business and finance, as it potentially reduces the cost of importing goods and fosters growth in these sectors.
