đşđ¸ Key Update: New Tariffs Set for AugustâŻ7
On JulyâŻ31, 2025, President Trump issued an executive order imposing new global tariffs, effective August 7, on goods from over 66 countries, including the EU, Canada, India, Taiwan, and Brazil. Rates range from 15% to 41%, depending on each country's trade alignment with U.S. interests .
Countries with recent preliminary trade deals (e.g. EU, Japan, South Korea, Vietnam, Indonesia) face lower tariffs (~15â20%), while others (Brazil, Syria, Myanmar, Laos) are hit with steeper rates up to 41% .
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âď¸ Trade Strategy & Legal Challenges
The administration has shifted to a more punitive tariff model, using reciprocal tariffs based on trade imbalances. These aim to raise federal revenue, encourage reshoring, and leverage deals with trading partners .
Legal challenges are underway: on May 28, the U.S. Court of International Trade ruled that the executive orders under the International Emergency Economic Powers Act (IEEPA) exceed presidential authority. That ruling is stayed pending appealâso tariffs remain in force for now .
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đ Major Impacts & Global Tensions
Average U.S. import tariffs have soared to about 18.3â18.6%, the highest since the 1930s .
Steep new duties include 35% on Canada, 50% on Brazil, 25% on India, 39% on Switzerland, and around 20â25% on Taiwan, Japan, and South Korea .
The U.S.âChina dispute has seen retaliation from China (34â84%) and recent tariff reductions following negotiations, though some Chinese duties remain paused until mid-August .