US President Donald Trump has announced a new round of tariffs, including a 10% global minimum and 15% or higher duties for countries with trade surpluses with the USA, Bloomberg reported.
Most of the tariffs would take effect after midnight on 7 August – not on 1 August, the deadline previously set by Trump – to allow time for US Customs and Border Protection to make the necessary changes to collect the levies, the 1 August report said.
The new tariffs included an increased levy on Canadian goods from 25% to 35% with immediate effect, The Guardian reported on 2 August.
Canadian prime minister Mark Carney was quoted as saying his government was “disappointed” by the increased tariff, which Trump said was due to Canada’s failure to crack down on fentanyl and to increase border security.
Canada denies that, noting that about 1% of US fentanyl imports originate in Canada, the BBC wrote on 1 August.
According to a 1 August FreightWaves report, Canada ranked as the second largest trader with the USA in May, exporting goods worth US$57.6bn.
Goods covered by the United States-Mexico-Canada Agreement will not be affected by the new tariffs, authorities in Canada and the USA said in the FreightWaves report.
Tariff rates were also set at 25% for India’s US-bound exports, 20% for Taiwan and 30% for South Africa. The deadline for a tariff deal with Mexico was extended by a further 90 days, The Guardian wrote.
The European Union (EU)’s 15% tariff rate was confirmed in Trump’s executive order.
Brazil’s rate was set at 10%, although a previous order had placed a 40% tariff on the country due to its prosecution of former president Jair Bolsonaro.
Some of the world’s poorest countries were hit by punitive rates, with Syria facing a 41% levy. Laos and Mynamar received 40%; Libya 30%; Iraq 35% and Sri Lanka 20%, The Guardian report said.
Trump’s is hoping that his tariffs will help protect US jobs and encourage companies to invest more in the country, as well as raise government revenue, according to the Bloomberg report.
However, many economists have said the tariffs will hurt growth as higher prices for goods put a squeeze on household budgets.
