Dozens of Countries Hit with New Tariffs as Trump’s ‘Reciprocal’ Levies Take Effect
Trump's Reciprocal Tariffs Trigger Global Trade ShockDozens of Countries Hit with New Tariffs as Trump’s ‘Reciprocal’ Levies Take Effect
A new wave of country-specific tariffs, a cornerstone of President Donald Trump’s “reciprocal” trade policy, has come into effect.1 The new levies, which range from a 10% rate for the UK to a punishing 41% for war-torn Syria, were implemented at a minute past midnight Washington time on Thursday.2
Trump, in a social media post just before the deadline, declared that “billions of dollars” would begin to flow into the US as a result of the tariffs.3 The move comes as his administration faces an ongoing legal challenge in a US court of appeals questioning the president’s authority to impose these sweeping tariffs.4
The new rates are applied on top of existing tariffs, creating steep total duties for some nations.5 Brazil, for instance, faces a 10% “reciprocal” tariff, but a separate executive order from Wednesday—reportedly linked to the prosecution of its former president, Jair Bolsonaro—added a 40% levy, bringing the total tariff rate on many Brazilian goods to 50%.6
The European Union, on the other hand, negotiated a framework deal that sets a baseline rate of 15% for most goods, with previous tariffs now included in that total rather than being added on.7 This means products like cheese, which typically faced a 14.9% tariff, will now be taxed at 15% instead of a combined 29.9%.8
In the week leading up to the deadline, governments around the world scrambled to secure deals to avert the tariffs, which many fear will deter investment and lead to job losses.9 Swiss President Karin Keller-Sutter was in Washington for two days of meetings with Trump administration officials in an attempt to reverse a 39% levy that had blindsided her government. The Swiss government is set to hold an extraordinary meeting to discuss the matter further.
Meanwhile, India, which was initially assigned a 25% tariff rate, could see its total rate rise to 50% after Trump signed an executive order imposing an additional levy. The move is in retaliation for India’s continued purchase of Russian oil, and New Delhi has 21 days to respond before the additional duty takes effect. Trump has threatened to use the same tactic on other nations that import oil from Russia.10
The tariffs are the latest step in a trade policy Trump first unveiled on what he called “liberation day” on April 2, a date he claimed marked the end of decades of the world “looting” the US.11 After a period of negotiation, some trading partners, including the UK, Japan, South Korea, Pakistan, and the EU, were able to secure reduced rates.12 However, many of these “deals” still result in significantly higher tariffs than they faced before the new policy.
Other major trading partners have also been affected.13 Canada now faces a 35% tariff, while Mexico’s rate remains at 25% after it was granted a 90-day extension.14 China faces a 30% rate as negotiations continue ahead of a separate deadline.15
In a related move, Trump warned on Wednesday that the US would also impose a nearly 100% tariff on semiconductor chips imported from countries not producing or planning to produce them in America.
