Trump tariffs: which countries face higher tariff rates?

Almost every US trading partner has been hit with a fresh round of Trump tariffs following the end of the 90-day pause on 1 August.

As tariffs take effect on more than 90 countries, US president Donald Trump has also doubled the tariff on India to 50%, which will start on 27 August unless it stops buying Russian oil.

Trump’s tariffs hit the headlines on 2 April, dubbed ‘Liberation Day’ by the US president. They are, in effect, an attempt to reduce the US’s trade deficit and boost its domestic industry by placing tariffs on imported goods.

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In a post on his Truth Social platform, Trump recently claimed that billions of dollars were now flowing into the US due to tariffs.

But some observers fear that tariffs could hurt the US economy. The S&P 500 fell 1.6% on Friday 1 August as investor optimism was dented by the latest round of tariff updates.

Tariffs sent global markets into a tailspin for weeks following their initial announcement, until Trump announced a 90-day pause during which time the US president sought to negotiate trade deals with countries across the world on terms favourable to the US.

That pause expired on 1 August, and now dozens of countries have been impacted by new tariffs.

“These tariffs are forcing countries to rewire their trade, capital, and strategic priorities,” said Nigel Green, CEO of deVere Group. “The world is moving toward multiple centres of economic power and influence.”

Stock markets across the world fell as pessimism towards world trade mounted. The Hang Seng Index which tracks Hong Kong-listed stocks fell 1.1% on 1 August while the Euro Stoxx 600 index fell 1.9%.

The White House announced the new tariff rates on the evening of Thursday, 31 July, with the new rates coming into effect seven days from that date.

Here are the new tariff rates that the world’s 10 largest economies are subject to as of 7 August:

Note that EU nations have been grouped as the bloc is subject to a single collective tariff regime. China has its own deadline of 12 August approaching before tariffs will rise to 145% if no deal is reached in the meantime. Mexico has a 90-day extension at current tariff rates, while the latest 35% tariff on Canada takes effect from 1 August.

Any country that runs a trade deficit with the US is subject to a 15% minimum tariff rate unless a trade deal is in place.

India faces 50% tariff unless it stops buying Russian oil

India is the latest country to be threatened with a higher tariff. Trump had previously warned that India could face additional tariffs of 100% if it continues to maintain relations with Russia, such as by importing Russian oil.

In the end, Trump said the total tariff on India would rise to 50% as he pushes the world's third biggest energy importer to stop buying oil from Russia. The higher tariff will kick in on 27 August.

The move has sparked outrage in New Delhi and risks escalating a fight with a key Asian partner. India has called the higher tariff "unfair, unjustified and unreasonable" and vowed to protect its national interests.

Victoria Scholar, head of investment at Interactive Investor, notes that stocks in India have sunk to a three-month low, “spooked by Trump’s additional 25% tariffs”.

According to Shilan Shah, deputy chief emerging markets economist at the consultancy Capital Economics, if the extra 25% tariff remains in place, “India’s attractiveness as an emerging manufacturing hub will be hugely undermined”.

He adds: “Global oil prices would probably rise if India responded by curtailing purchases from Russia.”

Trump slaps punitive tariffs on Canada and Brazil but extends deadline with Mexico

There is an overtly political slant to the latest tariffs that have been slapped on Canada and Brazil.

Trump posted on his social media platform Truth Social on 31 July to say the country’s support for Palestinian statehood would “make it very hard for us to make a trade deal”.

The US president then hiked tariff rates on Canada from 25% to 35%, with immediate effect.

However, goods that are compliant with the United States-Mexico-Canada Agreement will be exempt from the higher tariff, which “reduces the impact”, said Jim Reid, global head of macro research and thematic strategy at Deutsche Bank.

“Canada is being singled out to a degree,” Reid added.

Brazil is subject to a 10% tariff according to the executive order that Trump announced covering all countries on Thursday, as well as an additional 40% ad valorem tariff on imports from the country in response to what he has called a “witch hunt” against former president Jair Bolsonaro.

That means Brazil’s US exports will be subject to an effective tariff rate of 50% from 7 August.

Mexico had been threatened with a 35% levy but, following an eleventh-hour phone conversation with Mexico’s president Claudia Sheinbaum, Trump has extended the deadline for 90 days while the two countries try to reach a new deal.

In the meantime most US imports from Mexico will be subject to the 25% baseline tariff announced back in March on non-USMCA compliant goods and cars, while certain products (such as steel and aluminium) will be subject to higher tariffs.

EU strikes trade deal with the US

On 27 July, Trump and European Commission president Ursula von der Leyen agreed a deal that will see the tariff rate on US imports from the EU reduced to 15%, having previously been set to rise to 30% on 1 August.

In return, EU nations will open their markets to the US, with some products subject to 0% in tariffs.

The EU joined a list of countries with whom Trump has agreed a trade deal, which includes the UK, Japan, Indonesia, the Philippines and Vietnam.

What is the tariff rate on China?

Until 12 August, Chinese exports to the US are subject to a blanket 30% tariff, though export controls and additional rates apply to certain products.

Goods exported from the US to China are subject to a 10% tariff, again with some controls and additional rates in place.

Delegates from both nations met in Sweden last month to discuss further progress on the US-China trade deal.

Both sets of negotiators have agreed in principle to extend the 12 August deadline to give more time to agree a deal, but US delegates said that the ultimate decision over any extension rests with Trump.

If no agreement is reached before the deadline, then the tariff rates would revert to 145% for US imports from China, and 125% for Chinese imports from the US.

Which goods and commodities have the highest US tariffs?

The country-level tariffs outlined above apply to all goods imports into the US. But some categories of strategically-important goods and commodities are subject to individual tariffs, regardless of their point of origin.

Trump says he will impose a 100% tariff on foreign-made semiconductors. He has also threatened the same tax on foreign-made computer chips as he pushes tech firms to invest in the US. Major chipmakers that have made significant investments in America seem to have dodged the new tariff, such as TSMC, SK Hynix and Samsung.

Meanwhile, pharmaceutical and healthcare imports could be subject to a 200% tariff rate.

Some commodities have also been subject to individual tariffs. Trump recently announced a 50% tariff on copper imports, effective from 1 August. Steel and aluminium imports are already subject to a 50% tariff from most countries, though in the UK’s case this is 25%.

What are the economic impacts of Trump’s tariffs?

As tariffs are effectively a tax on imports that are paid either by US businesses, or their customers if they pass these prices on, there is a fear that they could increase inflation in the US.

“Tariffs affect the real economy via three primary channels: higher prices, tighter financial conditions, and uncertainty,” said Michael Pearce, deputy chief US economist at Oxford Economics.

But there could be longer-term damage to the US economy if the tariffs prompt erstwhile partners to reroute their trade in favour of rival economies.

“Beijing, Moscow, and increasingly Delhi are coordinating more closely on trade, infrastructure and investment,” said Green. “Long-time allies like Switzerland and Taiwan [hit by 39% and 20% tariffs respectively] are reassessing risk.

“Many governments are seeking to reduce exposure to Washington’s economic leverage altogether.”