Friday, August 1, President Trump upheld one of his longstanding campaign promises, increasing tariffs on imports from U.S. trading partners worldwide. While Friday was the deadline for countries to reach a deal with Washington, the tariffs don’t officially increase for two more days, until Thursday, August 7.
While the official deadline to reach a bilateral agreement was August 1, many of the tariff changes will begin to take effect later this week, on Thursday, August 7. However, certain countries have been granted temporary extensions. For example, China has until August 12, while Mexico has been given 90 days or more to negotiate a new deal and avoid the steepest of the new duties.
This marks one of the most significant overhauls of U.S. tariff policy in decades, affecting global supply chains and reshaping trading relationships. Here’s a detailed look at what’s changing — and what it means for importers and logistics partners.
The BBC worked to compile a list of tariffs by country. The highest share of U.S. imports is at the top.
A New Baseline: 10% Tariff on Most Imports
Under the new executive order, all imported goods will be subject to a baseline 10% tariff, with exceptions for 92 countries listed in the White House Executive Order. Those nations face higher, country-specific tariffs, in some cases reaching as high as 41% (Syria).
In essence, the U.S. now imposes tariffs on goods from every country in the world, a sharp reversal from the decades-long push for free trade agreements and multilateral exemptions. The move is part of Trump’s broader goal to “level the playing field” and reduce America’s trade deficit — though critics argue it could spark retaliation, raise consumer prices, and disrupt supply chains.
Key Country-Specific Tariffs
The list of countries facing elevated tariffs includes many of America’s largest and most critical trading partners. Here are some of the most notable changes:
Countries with Decreased Tariffs:
- Taiwan: Reduced from 32% to 20%
- Japan: Reduced from 24% to 15%
- South Korea: Reduced from 25% to 15%
- Vietnam: Reduced from 46% to 20%
- Indonesia: Reduced from 32% to 19%
- Bangladesh: Reduced from 37% to 20%
- Cambodia: Reduced from 49% to 19%
- Sri Lanka: Reduced from 44% to 20%
- Thailand: Reduced from 36% to 19%
- Lesotho: Reduced from 50% to 15%
- India: Slight drop from 26% to 25%
- Israel: Dropped from 17% to 15%
These cuts reflect diplomatic progress or ongoing trade negotiations, even in cases where the reductions are marginal.
Countries with Increased or High Tariffs:
- Syria: Faces the highest rate at 41%
- Switzerland: Increased from 31% to 39%, likely due to its EU alignment
- Philippines: Increased from 17% to 19%, despite recent friendly meetings
- South Africa: Unchanged at 30%, a holdover from April’s rates
- Serbia: Dropped slightly from 37% to 35%
Special Cases:
- Brazil: Officially set at 10%, but a separate executive action imposes a 40% supplemental tariff on specific goods (e.g., coffee), in response to Brazil’s prosecution of former President Jair Bolsonaro.
- United Kingdom: Held at 10% post-Brexit, but subject to trade friction due to the Falkland Islands and separate EU considerations.
- Falkland Islands: Despite being a British Overseas Territory, goods remain at 10%.
- European Union: Subject to a 15% tariff, part of a recently negotiated deal to avoid broader conflict.
The EU Deal: Avoiding a Trade War, For Now
On July 27, just days before the tariff deadline, President Trump and European Commission President Ursula von der Leyen struck a deal to ease tensions. The EU agreed to increase investments in U.S. energy and military goods while accepting a 15% tariff on most exports to the U.S. — down from the originally proposed 30%.
In return, the EU has paused retaliatory measures for six months, providing time to finalize a joint trade framework. This agreement is expected to prevent a tit-for-tat escalation that could have severely impacted transatlantic commerce.
Who Gets More Time?
Some countries are still negotiating under special extensions:
- China has until August 12 before any new tariffs take effect. Ongoing negotiations are focused on agriculture, semiconductors, and market access.
- Mexico — as a member of USMCA — is largely shielded from blanket tariffs but has been warned that select product categories may face 35% tariffs unless a new bilateral framework is reached. Trump has said Mexico has “90 days or longer” to resolve outstanding issues.
What This Means for U.S. Importers
The new tariff regime significantly raises the cost of doing business for many importers, especially those sourcing from Asia, South America, and Europe. Even with reductions for certain countries, the average U.S. tariff rate is now 15.2%, up from 13.3% earlier this year — and a far cry from the 2.3% average in 2024, before Trump returned to office.
Companies will need to:
- Review country of origin on all inbound shipments
Update landed cost calculations to reflect new tariff rates - Communicate with suppliers about potential re-sourcing or delays
- Evaluate options for tariff mitigation, including duty drawback or use of Foreign Trade Zones (FTZs)
M.E. Dey is here to help you navigate this fluid situation. With new tariff agreements trickling in and implementation timelines shifting, staying informed is critical. We are closely monitoring these developments. Please reach out to your M.E. Dey representative with any questions.