Washington DC: U.S. President Donald Trump has announced a sweeping new wave of tariffs targeting dozens of countries in a major escalation of his "America First" trade strategy. Under an executive order signed this week, tariffs ranging from 10% to 41% are being imposed on exports from 69 countries, with Canada, India, Brazil, and Taiwan among the hardest hit.
The most dramatic move includes raising tariffs on certain Canadian goods from 25% to 35%, citing what the White House called Ottawa's “failure to cooperate on fentanyl enforcement” and “unfair retaliatory trade practices.” However, exemptions remain in place for goods that comply with the USMCA (U.S.-Mexico-Canada Agreement), covering about 85% of Canadian exports.
The broad “reciprocal tariffs” policy aims to realign trade balances by imposing duties that match or exceed foreign countries’ own tariffs against U.S. goods. Brazilian goods face new 50% tariffs, while Indian and Taiwanese products are now subject to 25% and 20% tariffs respectively.
Trump invoked the International Emergency Economic Powers Act (IEEPA) to justify the moves, although the legality of such unilateral tariff increases remains under challenge. A U.S. trade court recently ruled against similar tariffs imposed under IEEPA, raising questions about how long the current measures will stand.
Despite the legal ambiguity, the administration is pushing ahead. Customs officials have been instructed to begin enforcement of the new rates starting August 7, giving federal systems time to adjust.
Countries including the United Kingdom, Japan, South Korea, and EU member states have reached side agreements with the U.S. and will not face the harshest penalties under the reciprocal regime. In contrast, negotiations are still ongoing with China and India, with a deadline for resolution set for August 12.
While the administration says the measures are essential for correcting years of trade imbalances and protecting American jobs, critics warn they could backfire. Economists have raised concerns over rising consumer prices, potential trade retaliation, and disruption in global supply chains. However, U.S. Treasury data suggests the move has already added $124 billion in revenue between January and July 2025, with estimates reaching $300 billion by year’s end.
Financial markets reacted cautiously, reflecting investor uncertainty about the long-term economic impact. Analysts say the immediate economic shock may be softened by exemptions and negotiation windows, but the broader consequences could depend on how trading partners respond in the coming weeks.
As the global trade environment adjusts to this latest upheaval, Washington is expected to continue pressing for bilateral deals on Trump’s terms or face further tariff escalation.