Trump announces historic new U.S. tariffs across the globe

The White House said the higher tariffs, ranging from 10% to 41%, will take effect in seven days for 69 countries. Mexico received a 90‑day extension after securing a temporary deal to maintain its existing 25% rate.

Canada, Washington’s second‑largest trading partner, saw its tariff rise to 35% from 25% on goods not covered by the U.S.-Mexico-Canada Agreement. Prime Minister Mark Carney said he was “disappointed” by the move but pledged to continue negotiations.

Trump linked the decision partly to Canada’s “continued inaction and retaliation” on fentanyl trafficking. The escalation followed Canada’s announcement of support for Palestinian statehood, which Trump said would make reaching a trade deal “very hard.”

India, the world’s third‑largest oil importer and a key buyer of Russian crude, was assigned a 25% rate. A senior U.S. official cited India’s “closed market” and geopolitical tensions, including its ties to the BRICS bloc.

Taiwan, which has been in talks with Washington since April, received a reduced 20% tariff. President Lai Ching‑te said negotiations were not yet finalised and described the tariff as “temporary.”

Markets across Asia reacted sharply, with South Korea’s KOSPI falling more than 3% and its currency dropping to a two‑month low. Malaysia, Cambodia and Thailand secured 19% rates, which officials described as safeguarding key export sectors.

The tariff package also ends the longstanding “de minimis” exemption for parcels worth less than $800, a move expected to impact online retailers such as Shein and Temu. The exemption will end on 29 August.

Legal challenges are continuing, with U.S. appeals court judges questioning whether the tariffs are justified under emergency powers. Businesses and states opposing the measures argue that Trump has exceeded his authority under the International Emergency Economic Powers Act.

The White House said customs and tariff revenues have already topped $150 billion since Trump took office and would “skyrocket” after the new duties take effect.

Critics, including Senate Majority Leader Chuck Schumer, accused Trump of waging a “trade war on the American people,” warning of rising prices for consumers.

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