President Donald Trump just signed a new executive order that will raise tariffs on products from several countries. This is coming after months of back-and-forth negotiations and is part of a bigger effort to protect U.S. trade interests and push other nations to align more closely with American economic and security policies.
These new tariffs will take effect in seven days. Let us break down what this means and how it could affect you and the global economy.
What countries are affected by the new tariffs?
Trump’s order affects dozens of countries. Some of the new tariff rates are pretty steep, especially for nations that have not yet reached a deal with the United States.
Here are a few of the highlights:
- India: 25 percent tariff
- Taiwan: 20 percent tariff
- South Africa: 30 percent tariff
- Myanmar and Laos: 40 percent tariff
- Syria: Highest rate at 41 percent
- Canada: 35 percent tariff on certain goods not covered by the USMCA
- South Korea and Japan: Each negotiated a deal with lower tariffs at 15 percent
- Vietnam: 20 percent tariff under new agreement
- Indonesia and the Philippines: 19 percent tariffs
These changes are aimed at countries that Trump says either did not engage enough in negotiations or did not offer fair terms.
Why is Trump raising tariffs again?
In his executive order, Trump explained that some countries failed to align with the United States on economic and national security matters. He said:
“There are also some trading partners that have failed to engage in negotiations with the United States or to take adequate steps to align sufficiently with the United States on economic and national security matters.”
For Trump, this is about more than just trade. He wants these countries to support U.S. interests more broadly—including on security and drug enforcement.
What is happening with canada?
Canada is getting hit hard in this round. The tariff on Canadian goods not covered by the U.S.-Mexico-Canada Agreement (USMCA) will now rise from 25 percent to 35 percent.
Why? According to the White House, it is because of Canada’s lack of cooperation in stopping fentanyl and other illicit drugs from entering the U.S.
- The administration claims Canada has “failed to cooperate in curbing the ongoing flood of fentanyl.”
- Canada denies this, saying only small amounts of fentanyl are smuggled across the border.
On top of that, Trump has also voiced frustration over Canada’s decision to support Palestinian statehood, which he says makes reaching a trade deal “very hard.”
Which countries made last-minute deals?
Several countries managed to strike deals just before the new tariffs were finalized. These deals helped them avoid even higher tariff rates:
- Japan: Tariffs dropped to 15 percent instead of 25 percent. Japan also pledged to invest $550 billion in the U.S. and open its market to American cars and rice.
- South Korea: Secured a 15 percent tariff rate.
- European Union: Agreed to a 15 percent tariff on 70 percent of its goods, avoiding a 30 percent rate.
- United Kingdom: U.S. will apply a 10 percent base tariff. The U.K. will reduce levies on U.S. goods like wine, olive oil, and sports equipment.
- Philippines, Indonesia, Vietnam: All secured specific tariff rates ranging from 19 to 20 percent.
These countries acted quickly to avoid being hit harder. It shows that Trump’s tariff policy is not just about punishment—it is also being used as a way to pressure countries into new trade deals.
What about China?
China is still a major focus in this trade overhaul. While both countries were in a full-blown tariff war earlier this year—with rates as high as 145 percent on Chinese goods and 125 percent on U.S. products—they have agreed to a 90-day truce. Current Chinese tariffs have been rolled back to 30 percent and U.S. tariffs on Chinese goods are now at 10 percent. Talks are ongoing, and the deadline may be extended
Negotiators from both sides met recently in Stockholm and agreed to continue talks before the August 12 deadline.
What should you expect moving forward?
If you are a consumer, these tariff changes might show up as higher prices on goods from the affected countries. That includes electronics, clothing, cars, and even groceries. If you are in business, you might see changes in supply chains or import costs.
Overall, Trump is making it clear: countries that want fair trade with the U.S. must also align with its national and economic interests. The pressure is now on for others to make a deal—or face steep consequences.
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