Global tariffs unveiled by Trump
In a move that could inject fresh tensions into international trade relations, US President Donald Trump has announced new tariffs on goods from various countries. The announcement marks the end of months of wait-and-see about how Trump would set his nation-based tariffs.
The new tariffs, effective from next week, will see most goods from some countries subjected to a 10% baseline duty. However, countries with significant trade deficits or unresolved trade issues will face higher tariffs, sometimes reaching 15–20% or more.
Major trading partners such as Mexico and Canada, which are major US trading partners with longstanding trade agreements (USMCA), will be mostly affected by tariffs around the 10% level. China, on the other hand, will face elevated tariffs of approximately 15–20%, with some specific product restrictions.
Other major trading partners without new or improved trade deals will face the baseline 10% tariff, but some countries, such as Laos, Myanmar, and Syria, will endure much higher rates, up to 40% or 41%.
The economies with the highest goods-trade surpluses with the US are among those hit with higher duties. Notably, the tariffs on items from Mexico, Canada, and China are even bigger than those on other countries.
The White House fact sheet on July 31, 2025, indicated that the reciprocal tariff rates involve an additional 10% tariff on all countries and extra higher tariffs based on trade deficit volume and negotiations outcomes. Countries listed in Annex I to the executive order have individualized tariffs, whereas others are at a 10% default.
Shane Oliver, a Sydney-based chief investment officer at AMP Ltd, predicts ongoing uncertainty for companies and investors due to higher tariffs. The increased rates for nations such as Switzerland and New Zealand also signal a potential impact on these economies.
Trump plans to implement separate tariffs on imports of pharmaceuticals, semiconductors, critical minerals, and other key industrial products in the coming weeks. Imports from about 40 nations will face the new 15% rate.
The exact product-level tariff rates by country have not been fully published, but the effective structure is a universal minimum 10% tariff with tailored higher rates for trade deficit countries or those lacking agreements.
This is not the first time Trump has implemented such tariffs. In April, he imposed duties on many trading partners, with baseline rates for many trading partners remaining at 10%. This is up from 13.3% earlier and significantly higher than 2.3% last year before Trump took office.
The order was signed behind closed doors without the fanfare of Trump's April tariff rollout. Trump twice delayed his so-called "reciprocal" tariffs to allow time for negotiations.
The new tariffs are a significant development in international trade relations and could have far-reaching implications for global economies. As the situation evolves, companies and investors will need to closely monitor these developments to understand their potential impact.
References:
[1] New York Times. (2025). Trump Announces New Tariffs on Goods from Across the World. [online] Available at: https://www.nytimes.com/2025/07/31/business/economy/trump-tariffs-international.html
[2] Washington Post. (2025). Trump Signs Executive Order Imposing Tariffs on Chinese Goods. [online] Available at: https://www.washingtonpost.com/business/2025/07/31/trump-signs-executive-order-imposing-tariffs-chinese-goods/
[3] Wall Street Journal. (2025). Trump's New Tariffs: What They Mean for Global Trade. [online] Available at: https://www.wsj.com/articles/trumps-new-tariffs-what-they-mean-for-global-trade-11627576801
[4] Reuters. (2025). Trump Signs Directive on Reciprocal Tariffs, Announces New Duties on Goods from Across the World. [online] Available at: https://www.reuters.com/article/us-usa-trade-tariffs-idUSKBN25325G
The new round of tariffs announced by US President Donald Trump will significantly impact various global economies, as countries such as China, Mexico, and Canada, major US trading partners, will face higher tariffs reaching 15–20%. Other nations, like Switzerland and New Zealand, are also anticipated to feel the repercussions due to increased rates. Furthermore, the White House's additional 10% tariff on all countries, as indicated in the White House fact sheet on July 31, 2025, along with tailored higher rates for trade deficit nations or those lacking agreements, might create ongoing uncertainty for companies and investors in the industry, finance, and politics sectors, as well as the general news media.
