Nations that struck trade deals—including the UK, Japan, and Vietnam—avoid the highest rates
President Donald Trump finalized sweeping “reciprocal” tariffs on imports from 70 countries yesterday, aiming to rebalance trade in favor of America. The tariffs will take effect in seven days.
Tariffs on Canadian goods surged to 35%, while other countries will face rates between 10% and 41%, depending on their trade balances with the US.
Customs officials have one week to implement most increases, except for Canada’s, which took effect Friday.
Trump also signed a separate order placing 50% tariffs on Brazil, citing an economic emergency under a 1977 law, pointing to Brazil’s internal policies and the prosecution of former President Jair Bolsonaro.
Selective exemptions and trade negotiations
Countries with trade agreements—including the UK, Japan, and Vietnam—will avoid the highest tariffs.
Trump extended Mexico’s deadline by 90 days and pushed China’s to August 12. He has used US market access and military support as bargaining tools.
However, critics argue the tariffs function as hidden taxes on American consumers and businesses. Apple alone expects a $1.1 billion cost increase next quarter.
Inflation has risen to 2.6%, and supply chains remain strained.
Legal and economic fallout
A federal appeals court heard arguments Thursday on whether Trump overstepped his authority by invoking a 1977 emergency law to justify tariffs. Judges questioned whether an actual emergency exists.
The case may reach the Supreme Court as legal challenges mount.