Trump Signs Executive Order: 67 Countries Face Tax Rates Ranging from 15% to 41% New Tariff Effective Date Postponed to August 7
On August 1, U.S. President Trump signed an executive order announcing a new tariff ranging from 15% to 41% on imports from 67 trading partners, setting the highest tariff levels in over a century in the U.S.
Reports indicate that the implementation of the new tariffs has been postponed from the original date of August 1 to August 7, allowing countries a final window for negotiation.
The White House explained that the one-week delay is to coordinate the new tariff list and to provide additional negotiation opportunities for countries that have not yet reached an agreement.
The new tariffs cover differentiated rates ranging from 15% to 41%, with countries like Switzerland, Syria, and Canada facing higher rates of 39%, 41%, and 35% respectively, while negotiating countries like Japan, South Korea, and the European Union have rates lowered to between 15% and 37%.
However, some countries have also received extensions or reductions due to negotiation discussions. Mexico has been granted a 90-day reprieve, while countries like the EU, Japan, and South Korea that have reached agreements will have rates lower than the initial threatened levels.
It is noteworthy that the U.S.-China tariff truce extends to August 12, with both sides continuing discussions under an independent negotiation framework. Market analysts warn that if no breakthroughs are achieved before August 7, the global supply chain may face further impacts.
The Trump administration describes this move as a 'historic new trade system,' but economists are concerned that high tariffs could raise U.S. inflation by 0.5%-0.7% and accelerate the restructuring of global supply chains.
As the August 7 deadline approaches, countries that have not reached agreements may face a more challenging trade environment, and this policy shift reflects the U.S. strategic intent to reshape the global trade landscape.
