Trump announces global import taxes
The White House has announced a series of new tariffs on goods from across the world, marking a significant shift in U.S. trade policy. As of July-August 2025, these updated tariff rates affect major industrialized economies, Mexico, Canada, China, and other countries such as Switzerland and New Zealand.
President Donald Trump's July 10, 2025, announcement saw the baseline reciprocal tariff rate for many countries increased to between 15% and 20%. For major trading partners such as Japan, Israel, Jordan, the reciprocal tariffs are set at 15%. Tariffs on steel and aluminum imports, crucial to many industrialized economies including Canada and the EU, were raised to 50%.
Mexico and China face higher tariffs, with Mexico's duties on imports rising from 25% to 35%, starting late July 2025. China’s tariff rate faces potential increases but has temporary deadline extensions for negotiations. Switzerland's tariff jumped from 31% to 39% in the latest tariff adjustment.
For countries not specifically listed, goods face a baseline 10% tariff. Thailand and Cambodia, two nations that were said to have struck a last-minute deal, will receive a 19 percent duty, matching rates imposed on regional neighbors including Indonesia and the Philippines. Vietnam's goods are to be charged 20 percent.
The economies with the highest goods-trade surpluses with the U.S. are among those hit with higher duties. The announcement marks the end of months of wait-and-see about how Trump would set his nation-based tariffs.
Imports from about 40 nations will face the new 15 percent rate. Trump signed the directive just hours before yesterday's deadline for higher tariffs to kick in on scores of trading partners. Taken together, the average U.S. tariff rate is to rise to 15.2 percent if rates are implemented as announced. This is up from 13.3 percent earlier and significantly higher than 2.3 percent last year before Trump took office.
Roughly a dozen economies' products will be hit with higher duties, either because they reached a deal or Trump sent them a letter unilaterally setting import taxes. A 25 percent levy on Indian exports has been announced by Trump this week on social media.
Trump is expected to announce separate tariffs on imports of pharmaceuticals, semiconductors, critical minerals, and other key industrial products in the coming weeks. The baseline rates for many trading partners remain at 10% from the duties Trump imposed in April.
The new tariffs are expected to bring ongoing uncertainty for companies and investors, as stated by Shane Oliver, a Sydney-based chief investment officer at AMP Ltd. The order was signed behind closed doors without the fanfare of Trump's April tariff rollout. The impact of these tariffs on global trade and the U.S. economy remains to be seen.
- The new tariffs, including an increased baseline rate of 15% for numerous countries, are likely to have a significant impact on various Industries that heavily rely on international trade, such as manufacturing and finance.
- The finance sector might experience fluctuations due to the announcement of higher tariffs, particularly on imports from countries like Mexico and China, where duties have been raised to 35% and 50%, respectively, for steel and aluminum.
