New tariffs implemented by Trump grant leniency to certain countries, while stocks and US currency plummet
In a move that has sent ripples across the global trade landscape, U.S. President Donald Trump announced new tariff rates on imports from various countries, effective August 7.
The tariffs range from about 10% to above 40-50%, depending on the country and product category. Here's a closer look at the new tariff rates for some key trading partners:
- Canada: Many of Canada's exports to the U.S. are tariff-free under the USMCA trade agreement. However, steel, lumber, aluminum, and autos face higher tariffs. Retaliatory tariffs from Canada are at 25% on $20 billion of U.S. goods, while the U.S. imposed tariffs on certain Canadian goods starting March 4, 2025. The new tariff rate for goods from Canada is 35%. Trump cited a lack of cooperation in stemming trafficking in illicit drugs across the northern border as a reason for the increased tariff.
- Switzerland: Switzerland faces a 39% tariff rate on its exports to the U.S., up from the original proposal of a 31% duty. This tariff affects luxury watches, pharmaceuticals, and financial services imports.
- New Zealand: The U.S. announced a 15% tariff on New Zealand's exports, increased from an initial 10% baseline set earlier in 2025. New Zealand is currently lobbying Trump to cut this tariff.
- Australia: A 10% tariff is applied on most imports, with specific territories like Norfolk Island facing higher tariffs (29%). Australia's Trade Minister Don Farrell considers the 10% tariff on Australia's exports to the United States as a vindication of his government's "cool and calm negotiations," but still finds it unjustified.
- Cambodia: One of the highest tariffs at 49% was imposed under the April 2, 2025 "Liberation Day" tariff package. However, Cambodia's Deputy Prime Minister Sun Chanthol thanked Trump for setting the tariff rate on Cambodian goods at 19%, and announced a deal to purchase 10 passenger aircraft from Boeing.
- Thailand: Although not explicitly detailed in the sources, Thailand is generally included in broad tariff increases, but specific percentages were not stated in the provided context. Thailand is subject to a 19% tariff, down from the initially proposed 36%.
- Pakistan and Bangladesh: The sources do not explicitly list specific new tariff rates for these countries as part of the 2025 tariff announcements. However, given the pattern of tariff hikes, Pakistan and Bangladesh may face elevated tariffs, but precise figures are unavailable from the supplied data. Pakistan welcomed a trade deal that sets a 19% duty on its exports, lower than the initial plan for 29%. Bangladesh avoided a 35% import duty for its garments and other light manufactured goods, with a new 20% tariff rate.
- Japan: Japanese Chief Cabinet Secretary Yoshimasa Hayashi expressed caution about the 15% tariff rate on Japan's exports to the U.S., urging prompt implementation of measures to reduce tariffs on automobiles and auto parts.
- Norway: Norwegian Prime Minister Jonas Gahr Støre objects to a 15% tariff rate on Norway and believes the country should have "zero tariffs."
- Taiwan: Taiwan's President Lai Ching-te expressed hope for a further reduction in the 20% tariff rate on Taiwan's exports to the U.S. after final negotiations. The U.S. lowered its tariff for Taiwan to 20% from the originally proposed 32%.
- Bangladesh: Bangladesh's national security advisor and lead negotiator, Khalilur Rahman, stated that the new tariff rate supports the country's food security goals and fosters goodwill with U.S. farming states.
The new tariff rates for some key trading partners have profound implications for both their respective industries and the broader business landscape. For instance, Canada's new tariff rate for goods from Canada is 35%, potentially affecting sections such as steel, lumber, and autos, while Switzerland faces a 39% tariff on luxury watches, pharmaceuticals, and financial services imports. Such changes could influence general-news discourse and shape the direction of politics, as economies worldwide respond to these shifts in international finance.
