(NewsNation) — Tariffs have been central to President Donald Trump’s trade strategy, but a tangle of delays, threats and actual levies has made it difficult to determine what’s actually in effect.
April’s so-called “Liberation Day” marked a major escalation, sending stocks plunging before Trump paused some of the harshest “reciprocal” tariffs to give countries a chance to negotiate deals.
But after 90 days, and only a handful of announced agreements, Trump ramped up the pressure, setting a new deadline of Aug. 1 before harsher tariffs kicked in. Now, new reciprocal tariff rates on nearly 70 countries are in effect.
Trump has also followed through on tariffs targeting steel, aluminum and automotive imports — all of which are currently in effect. A 10% baseline tariff on nearly all U.S. imports is currently being enforced.
Recently announced tariffs currently in effect:
- New “reciprocal” tariff rates on roughly 70 countries went into effect on Aug. 7
- Following a 90-day pause, Trump signed an executive order on Aug. 1 outlining adjusted reciprocal tariff rates
- 10% global baseline tariff on nearly all U.S. imports (Canada and Mexico excluded)
- 25% tariff on imports from Mexico that are not compliant with the United States-Mexico-Canada Agreement
- 25% tariff on vehicle imports and auto parts
- 10% on the United Kingdom
- 15% on the European Union, Japan and South Korea, per announced deals
- 30% tariff on most Chinese imports (some electronics, including smartphones, face a 20% tariff)
- 54% tariff on packages under $800, “de minimis” exemption eliminated
- 35% tariff on Canadian imports that are not compliant with the United States-Mexico-Canada Agreement
- 10% tariff on Canadian energy products like oil and natural gas
- 10% tariff on any potash (popular fertilizer) imported from Canada or Mexico
- 50% tariff on Brazil, several sectors exempt, including orange juice, aircraft and energy
- 50% tariff on steel and aluminum imports, U.K. at 25%
- 50% tariff on copper products, such as copper pipes, wires, rods, sheets, and tubes
Tariffs that have recently been announced/threatened
- 30% tariff on Mexico was paused for 90 days on Aug. 1
- 50% tariff on India for its purchases of Russian oil, set to take effect Aug. 27
- 100% tariff announced on all semiconductor imports, Trump said Wednesday
- Up to 100% tariffs on Russia if it doesn’t reach a ceasefire with Ukraine in 50 days
- Up to 250% on pharmaceutical imports, Trump said on CNBC Tuesday
What’s going on with reciprocal tariffs?
In early April, Trump imposed a 10% global baseline tariff on nearly all U.S. imports, and dozens of countries faced higher “reciprocal” tariffs, marking what he called a “Liberation Day” for American trade.
A few days later, Trump paused the reciprocal tariffs for 90 days to work out specific deals with each country — a plan that has yielded several announced trade agreements so far.
The White House set a new deadline of Aug. 1, at which point Trump signed an executive order to impose reciprocal tariffs on about 70 countries starting Aug. 7.
Some countries, like Taiwan and Bangladesh, face a 20% tariff while others, including South Africa (30%) and Switzerland (39%), face steeper rates.
As of Aug. 7, consumers are facing an overall average effective tariff rate of 18.6%, the highest since 1933, according to the Budget Lab at Yale University.
The federal government has collected roughly $128 billion in tariffs and excise taxes through the first seven months of the year, according to Treasury Department data compiled by the Bipartisan Policy Center.
Those tariffs are mostly paid by American businesses — and ultimately consumers — in the form of higher prices.
What’s happening with tariffs on Canada and Mexico?
Canada and Mexico, the United States’ top two trading partners, now face different tariffs on goods that don’t comply with the countries’ free trade agreement.
Trump announced a 35% tariff on imports from Canada on Aug. 1, up from 25% before that. Meanwhile, Mexico continues to face a 25% levy after securing 90 more days to negotiate.
The president has accused America’s allies of exploiting the U.S. on trade and not doing enough to curb the flow of drugs like fentanyl into the country.
“The United States of America has been ripped off on TRADE (and MILITARY!), by friend and foe, alike, for DECADES,” Trump wrote on Truth Social in July.
The tariffs could saddle families with higher grocery bills and American businesses with increased production costs. The latest Consumer Price Index shows inflation rose 2.7% in June from a year earlier, marking the highest annual increase since February.
In a recent social media post, Canadian Prime Minister Mark Carney said his country would continue to negotiate with the U.S. on trade and has made “historic investments in border security to arrest drug traffickers.”
“We will continue working with the United States to stop the scourge of fentanyl and save lives in both countries,” Carney wrote on July 31.
Trump has imposed lower duties on Canadian energy products and fertilizer, which are currently subject to a 10% tariff.
Targeted tariffs: Steel, aluminum and auto parts
Trump has enacted several tariffs targeting specific industries, rather than countries, and more could be coming soon.
The president recently imposed a 50% tariff on several categories of copper imports, such as copper pipes, wires, rods, sheets, and tubes, as well as copper-intensive derivative products, like pipe fittings, cables, connectors, and electrical components.
Trump is also planning a 100% tariff on semiconductors and computer chips that aren’t made in the U.S., he said Wednesday. The president has even floated tariffs on imported pharmaceuticals that could eventually reach up to 250%.
“We’re going to give people about a year, year and a half, to come in, and after that, they’re going to be tariffed,” Trump said during a Cabinet meeting in early July. “We’ll give them a certain period of time to get their act together.”
In June, Trump hiked nearly all of his tariffs on steel and aluminum imports to 50%, a move economists warn could squeeze consumers and businesses alike. The two materials are used in household staples like soup cans and paperclips as well as big-ticket products like refrigerators and cars.
A 25% tariff on imported vehicles and auto parts is also in effect, potentially adding thousands of dollars to the price of a new car. However, countries like Japan and South Korea, as well as the European Union, have recently negotiated 15% rates.
Trump has pitched his tariffs as a way to protect U.S. industry and bring jobs back, but economists remain unconvinced, saying there is little evidence supporting that approach in the long run.
Which countries have negotiated new trade deals?
In June, Trump and British Prime Minister Keir Starmer said they had signed a trade deal that will slash tariffs on U.K. auto and aerospace industry imports — but the details on steel and aluminum have yet to be finalized.
Last month, the president unveiled a trade deal with the European Union that sets a 15% base tariff on most E.U. exports, including cars. However, there was no agreement on rates for key areas like pharmaceuticals and steel.
Trump has also struck deals with Japan and South Korea, two major car exporters. Both will face a 15% tariff on their goods, lower than the 25% rate Trump had threatened.
Meanwhile, the Trump administration has announced deals with Vietnam, Indonesia, the Philippines, Thailand and Cambodia.
Trump has claimed victory for a trade truce with China, with both countries pledging to scale back the retaliatory measures that had intensified in recent months, albeit temporarily.
Dozens of countries remain in tariff limbo, and predictions of “90 deals in 90 days” have not materialized. In one interview, the president even claimed to have made 200 deals. Instead, Trump extended the negotiation deadline to Aug. 1 and sent letters warning of potential action if agreements weren’t reached.
What about the lawsuits?
In May, a U.S. federal court blocked much of Trump’s tariff package, ruling that an emergency law did not provide Trump with unilateral authority to impose tariffs on nearly every country.
Trump had invoked emergency powers under a 1977 law when he initially declared the tariffs, but a three-judge panel of the U.S. Court of International Trade ruled he had exceeded his power.
However, a federal appeals court agreed to let the tariffs stay in place while the administration appeals the decision. Arguments in that case took place on July 31, but the panel of judges did not rule from the bench, according to Reuters.
Regardless of how the court eventually rules, the litigation is almost certainly headed to the U.S. Supreme Court, Reuters noted.
That case specifically concerned the broad 10% tariffs, not the sector-specific levies, such as those on auto parts and aluminum.
Senior lawmakers have also floated legislation to rein in Trump’s tariff authority, but the efforts have yet to gain traction.
The Associated Press contributed to this report.