Trump imposes new global tariffs, raising average US import tax to 15.2%

US President Donald Trump has announced a series of new tariffs, increasing the average tariffs applied to goods imported from around the world.

The base tariffs for many trading partners remained at 10%, the same level Trump imposed in April. This allayed the worst fears of investors after the president suggested the taxes could double.

However, the decision to raise tariffs on some Canadian goods to 35% threatens to add new tension to an already strained relationship, while countries like Switzerland and New Zealand also saw their rates increase.

According to Bloomberg, if the rates are implemented as announced, the average US tariff rate will rise to 15.2%. This is significantly higher than the previous 13.3% and the 2.3% rate in 2024 before Trump took office.

Most of the tariffs will take effect after midnight on August 7 to allow the Customs and Border Protection agency to make the necessary changes to collect the taxes.

Trump signed the directive just hours before his August 1 deadline to implement higher tariffs on numerous trading partners.

Major industrialized economies, including the European Union, Japan, and South Korea, accepted a 15% tariff on their products, while the taxes on goods from Mexico, Canada, and China are even higher.

The planned 15% tariff on European goods was postponed until August 7, providing a brief delay as negotiators work to finalize a US-EU agreement.

Brussels has called on Washington to begin implementing the new US-EU trade deal, asking the US, its largest trading partner, to provide “urgent tariff relief” to Europe’s struggling exporters starting from August 1.

Trump is expected to impose separate tariffs on imports of pharmaceuticals, semiconductors, critical minerals, and other key industrial products in the coming weeks, meaning uncertainty will continue for companies and investors.

Stocks came under pressure after Trump announced the new rates. The MSCI All Country World Index fell by 0.2%. S&P 500 contracts lost 0.2%, while European contracts fell by 0.6%. Asian stock markets declined for the sixth consecutive day with a 0.7% drop, marking the longest losing streak this year.

The Taiwanese dollar and the Korean won led the decline in foreign exchange markets, while the Swiss franc fell slightly after a 39% tax was imposed on products from the country. Switzerland was one of the few countries where rates were raised. The Canadian dollar remained stable despite the higher rates.

This announcement, at least for now, ends months of anticipation about how Trump would set the country-specific tariffs that are central to his plan to reduce the trade deficit and revive the American manufacturing sector.

Trump had twice postponed the so-called reciprocal tariffs, which he first announced in April, to allow time for negotiations after markets initially panicked and foreign governments bargained for better terms.

Thursday’s decision was signed behind closed doors. As a result, imports from approximately 40 countries will be subject to the new 15% tariff, while products from about a dozen economies will face higher tariffs due to either a negotiated agreement or Trump sending a letter unilaterally setting the import taxes. The second group consists of countries with the highest goods trade surpluses with the US.

Some of these were expected, such as the 25% tax on Indian exports that Trump announced on social media this week. Others include a 20% tax on Taiwanese products and a 30% tax on South African goods.

Thailand and Cambodia, which were said to have reached a last-minute deal, received a 19% tax, the same rate applied to neighboring countries like Indonesia and the Philippines. A 20% tariff will be applied to Vietnamese goods.

According to Bloomberg, there were signs that Trump’s decision surprised some partners. The Taiwanese cabinet stated that the imposed rate is temporary and that it expects the US-imposed tax to be lowered following talks that were postponed due to scheduling conflicts.

A senior US official said other details, including “rules of origin” to determine which products are being transshipped or rerouted through another country and thus subject to a tariff of at least 40%, have not yet been clarified. According to the official, the decision will be made in the coming weeks.

Former US trade negotiator Wendy Cutler said, “US customs officials will face challenges in implementing the presidential decree, especially with the different tariffs now being applied worldwide. The seven-day period before implementation will help, but importers should expect problems, at least initially.”

In a separate decision, Trump followed through on his threat to increase the tariffs on exports from Canada, one of the largest US trading partners, from 25%. This change excludes goods covered by the North American trade agreement he negotiated during his first term.

The lower 10% and 15% rates are expected to apply to mostly small and medium-sized economies with which Trump has shown little interest in one-on-one negotiations. Trump recently stated that there were too many countries to make individual deals.

However, some small countries were hit with the highest rates. These included Syria at 41%, and Laos and Myanmar at 40%. The small African nation of Lesotho, which was shaken by Trump’s threat in April to impose a 50% tariff, escaped with a 15% rate.

A 15% tariff was also imposed on all products from Türkiye going to the US.

The senior US official said no date has yet been set for when revised automobile tariffs will be implemented. Trump’s agreements with the EU, Japan, and South Korea will reduce the tariffs on their vehicle exports from the general rate of 25% to 15%.

A major exception to this week’s deadline is China, as its tariff ceasefire with the US is set to expire on August 12. The Trump administration has indicated that an extension of the ceasefire is likely. No final decision has been made yet, but an official said the recent US-China talks in Stockholm were positive.