Answering your questions about President Trump’s reciprocal tariffs
WASHINGTON — President Donald Trump has signed a sweeping new executive order that dramatically raises tariffs on imported goods from countries around the world. The move, announced on July 31, is part of his push to boost American manufacturing by making foreign goods more expensive.
What’s Changing?
Under the new order, tariffs — or taxes on imported goods — will rise for many countries, starting seven days from now.
- Canada: Tariffs are jumping from 25% to 35%, largely in response to the ongoing fentanyl crisis. Trump blames Canadian imports for fueling drug problems in the U.S.
- 40 other countries will now face a 15% tariff if they export slightly more to the U.S. than they import from it.
- The highest tariffs go to countries like Laos and Myanmar (40%) and Syria (41%), where America has some of its biggest trade deficits.
- Countries the U.S. exports more to than it imports from will face a baseline 10% tariff.
These tariffs are “reciprocal,” meaning they’re designed to match or respond to the trade behavior of other countries.
What About Existing Trade Deals?
Imports that fall under the United States-Mexico-Canada Agreement (USMCA) — a deal Trump originally signed during his first term — will not be affected by the new Canadian tariffs.
Why Is This Happening?
Trump had warned back in April that countries would face tougher tariffs if they didn’t strike new trade deals with the U.S. by August 1. That deadline was first extended due to market concerns, but Trump says he’s now serious about enforcing it.
He claims these measures will bring jobs and factories back to the U.S., even though many economists argue that tariffs usually lead to higher prices for American shoppers.
A Mixed Track Record
Trump has a history of announcing tough trade policies, only to back down later. That led Wall Street analysts to nickname his strategy “TACO trade” — short for “Trump Always Chickens Out.” But this time, he says he’s sticking to the plan.
Some countries have already struck new deals with Trump’s administration:
- Japan: 15% tariff
- Vietnam: 20%
- Indonesia: 19%
- European Union: 15%
The Bottom Line
Trump’s latest tariff move is a bold step that could reshape how the U.S. trades with the world — or it could mean higher prices at home, depending on how businesses and consumers react. The next few months will be key to seeing how it all plays out.
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