U.S. President Donald Trump on Wednesday introduced a series of new tariffs targeting several major trade partners, just hours before an August 1 deadline for reaching new trade deals with Washington.
South Korea managed to strike a last-minute agreement, securing a 15% tariff rate on its exports to the U.S., significantly less than the 25% Trump had earlier proposed. In return, South Korea also committed to a major financial investment in the United States. Tariffs on Korean automobiles, one of its key exports, will also remain at 15%.
Meanwhile, Trump announced steep 50% tariffs on Brazilian goods and a 25% duty on Indian exports, while warning Canada of economic consequences for its plan to support Palestinian statehood at the upcoming UN General Assembly.
Though the 50% tariffs on Brazil were delayed until August 6, several products such as orange juice, aircraft parts, iron ore, and energy-related items were exempted.
Trump also issued sanctions against the Brazilian Supreme Court judge handling the case of former President Jair Bolsonaro, whom Trump supports.
Brazilian President Luiz Inacio Lula da Silva responded by pledging to defend Brazil’s sovereignty in the face of the U.S. sanctions.
On India, Trump followed through with a 25% tariff—slightly less than previously threatened—after negotiations between Washington and New Delhi failed. He also hinted at additional penalties over India’s continued defense and energy dealings with Russia. “They can take their dead economies down together, for all I care,” Trump said on his Truth Social platform, blasting India’s high tariff regime and low trade volume with the U.S.
Canada also found itself in Trump’s crosshairs after Prime Minister Mark Carney announced the country’s intention to back Palestinian statehood. Trump warned that this would complicate future U.S.-Canada trade relations.
In addition to the country-specific measures, Trump signed an executive order imposing a 50% tariff on select copper products and revoked duty exemptions for low-value imports, while sparing key copper materials like ores and cathodes.
Commerce Secretary Howard Lutnick confirmed that trade deals were reached with Cambodia and Thailand, although details were not disclosed.
These new tariffs are part of a broader strategy announced in April, where Trump proposed a minimum 10% duty on goods from nearly all U.S. trade partners. Though implementation was delayed twice due to market instability, Trump affirmed on Wednesday that the August 1 deadline would stand, calling it a “big day for America.”
Several nations, including the U.K., Japan, Vietnam, Indonesia, the Philippines, and the European Union, have already reached preliminary deals to avoid the most severe tariffs.
Though Trump touts tariffs as a revenue booster, economists warn they could trigger inflation and slow down economic growth, especially as businesses exhaust existing inventories and pass costs to consumers. According to Yale University’s Budget Lab, the average effective U.S. tariff rate is now at its highest since the 1930s.
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