President Trump Lays Down New Tariff bite: 70 Countries Targeted
President Donald Trump has moved to reshape global trade policy by imposing new tariffs on nearly 70 countries, including Canada, which faces a significant 35% levy. The measures, initially expected to take effect on Friday, have been delayed by a week for most countries to leave room for negotiations.
The tariffs, ranging up to 41% depending on the trading partner, are part of Trump’s strategy to strengthen U.S. exports and boost domestic manufacturing. The U.S. leader has long maintained that reciprocal tariffs are necessary to counter unfair trade practices, and he believes higher duties will put American exporters in a more advantageous position.
However, the muscular approach has sparked concerns about potential economic fallout, including inflation, in the world’s largest economy. Economists caution that while the one-off impact of duties may be manageable, persistent effects could be more challenging to weigh.
The new tariffs come as Trump continues to prioritize protectionist policies. In a departure from his typically hardline stance, he granted a 90-day reprieve to Mexico, delaying a planned increase in tariffs after productive talks with President Claudia Sheinbaum. Meanwhile, Canada faces escalating tariffs following Prime Minister Mark Carney’s announcement to recognize a Palestinian state at the UN General Assembly.
Trump’s aggressive use of tariffs has raised questions about the future of bilateral trade deals, even as countries like Vietnam, Japan, Indonesia, the Philippines, South Korea, and the European Union have managed to strike deals with Washington to avoid higher duties.
In related news, the U.S. Court of Appeals is reviewing challenges against Trump’s use of emergency economic powers for imposing blanket tariffs on various countries. While the president has highlighted increased customs revenues, economists warn that duties could exacerbate inflation.
The adjusted tariff levels see Switzerland now facing a higher 39% duty, while Taiwan’s tariff was revised down to 20%. In Southeast Asia, Cambodia and Thailand saw their tariffs reduced to 19%, down from initial threatened levels. Britain, not previously targeted by higher reciprocal tariffs, also reached a pact with the United States.
Notably, China is excluded from the current drama, with its tariff deadline set for August 12. Washington and Beijing have been working to extend their truce and avoid a return to triple-digit tariffs.
Wendy Cutler, senior vice president of the Asia Society Policy Institute, warned, “No doubt about it — the executive order and related agreements concluded over the past few months tear up the trade rule book that has governed international trade since World War II. Whether our partners can preserve it without the United States is an open question.”
As negotiations continue and tensionsocytes with trading partners evolve, global markets await further developments in this dynamic trade landscape.
