Trump Slaps Tariffs on 70+ Nations; India Faces 25%, Canada Hit with 35%.
US President Donald Trump has signed an executive order imposing steep new tariffs on imports from over 70 countries, escalating his administration’s push for “fair and reciprocal trade.” India will now face a 25% tariff, while Canada has been hit with an immediate hike to 35%.
Canada Tariff Spike Tied to Fentanyl Crisis
According to the White House, the decision to increase Canadian tariffs from 25% to 35% stems from Canada’s alleged inaction on the cross-border fentanyl crisis and what the administration termed “retaliatory measures” against US policies. The new duty on Canadian imports took effect immediately on August 1.
India Among Hardest Hit
India, grouped under the 25% slab, is among several key US trade partners facing significantly higher tariffs. A senior US official said the decision reflects longstanding issues with India’s market restrictions, its geopolitical alignment with BRICS nations, and continued purchases of Russian oil.
New Tariff Structure at a Glance
Here’s the country-wise breakdown of reciprocal tariff rates:
41% – Syria
40% – Laos, Myanmar
39% – Switzerland
35% – Canada, Iraq, Serbia
30% – Algeria, Libya, South Africa, Bosnia
25% – India, Moldova, Tunisia, Brunei, Kazakhstan
20% – Sri Lanka, Vietnam, Taiwan, Bangladesh
19% – Pakistan, Malaysia, Philippines, Cambodia, Thailand, Indonesia
15% – Israel, Japan, Turkey, Nigeria, Ghana
10% – UK, Brazil, Falkland Islands
European Union Adjustment: EU goods already facing US tariffs over 15% will remain unaffected. Items below that threshold will see an increase up to 15%, based on the current rate.
Implementation Timeline and Exemptions
Most of the new tariffs will be enforced seven days after the executive order’s signing. However, a grace period applies: goods shipped before August 7 and arriving by October 5 will be exempt, provided documentation proves they were in transit.
Canada is excluded from this buffer—its 35% duty came into effect immediately.
Trump Cites ‘Trade Emergency’
The executive order is rooted in an earlier declaration of a national trade emergency under Executive Order 14257. Trump said the move was essential to combat “chronic trade deficits” and “the failure of many partners to offer equitable terms.”
He added that some nations had refused to negotiate altogether or had presented “token offers” that did not address core concerns around tariff parity and security cooperation.
China Trade Talks Ongoing
Meanwhile, Treasury Secretary Scott Bessent said US trade talks with China remain in progress but incomplete. A deadline of August 12 has been set for finalizing a long-term agreement. Discussions in Stockholm this week saw “substantial pushback” from US negotiators, particularly on tech and rare earth exports.
US-India Trade Tensions Deepen
Officials acknowledged that the tariff on India could disrupt ongoing trade negotiations. “India has remained a challenging trade partner,” one senior official told Reuters, adding that “geopolitical choices” were also part of the rationale for the tariff level.
The Indian government has yet to respond formally to the decision, which could impact multiple sectors, including pharmaceuticals, textiles, and IT services.
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