🇺🇸 Trump Unveils “Reciprocal Tariffs” List: From India to Taiwan—and a 35% Hit on Canada

🇺🇸 Trump Unveils “Reciprocal Tariffs” List: From India to Taiwan—and a 35% Hit on Canada

August 1, 2025 | Washington, D.C. — President Donald Trump signed an executive order to implement “reciprocal tariffs”—ranging from 10% to 41%—on imports from approximately 69 countries and the 27-member European Union, to take effect on August 7, with Canada facing a separate 35% tariff effective August 1 Wikipedia+15Reuters+15Reuters+15.

📋 Key Country-Specific Tariff Rates

Country / Block

Tariff Rate

Brazil

50%

Switzerland

39%

South Africa

30%

India

25%

Taiwan & Vietnam

20%

Israel, UK, Philippines, Indonesia

10–15%

All other listed countries

Varies (10–41%)

Canada (under separate order)

35%

• Baseline: Countries not individually listed in the executive order will still face a default 10% tariff The Wall Street Journal+10AP News+10New York Post+10Reuters+12Hindustan Times+12New York Post+12.

• Canada’s escalation from 25% to 35% was linked to U.S. concerns over fentanyl smuggling and perceived diplomatic shortcomings. Non-USMCA compliant goods are fully taxed at the higher rate Wikipedia+5Reuters+5The Times+5.

🔍 Context and Rationale

Trump described the tariffs as retaliation for unfair economic practices, trade barriers, and imbalanced bilateral trade deficits. The policy is backed by a declared national emergency, allowing use of executive powers via the International Emergency Economic Powers Act and the Trade Act of 1974 The White House+1The Wall Street Journal+1.

Although trade negotiations with several nations—including the EU, UK, Japan, South Korea, and others—resulted in partial agreements and reduced rates, many countries remained without deals, exposing them to the new default or punitive tariffs The Times+2AP News+2New York Post+2.

📉 Market & Policy Impact

• Global markets responded cautiously—with slight declines in U.S. futures and equities—amid inflation and trade uncertainty concerns The Times.

• Analysts estimate the tariffs will dampen global growth, raise input costs for U.S. manufacturers, and likely raise consumer prices ReutersAP News.

🧭 Broader Implications

• Legal challenges are already underway, questioning the legality of such sweeping tariffs without congressional approval New York Post.

• Small economies like Lesotho and Myanmar, which face steep tariffs (35–40%), may lack leverage to negotiate better terms AP News.

• Strategic relations may shift: India and Taiwan now face pressure to renegotiate trade terms quickly, while Canada’s elevated rate complicates already tense border and security discussions New York Post+6Reuters+6The Guardian+6.

Trump’s executive order signals a dramatic escalation in trade policy—targeting 69 countries with heightened tariffs tailored by bilateral conditions. While intended as a lever to spur renegotiations and reduce trade deficits, this sweeping approach introduces legal uncertainty and economic risks both domestically and abroad. How many countries respond with negotiations—or retaliatory tariffs—will shape the global economy in the months ahead.