Trump Unveils Global Tariff Overhaul – Here’s A Country-By-Country Breakdown

Trump’s sweeping tariff overhaul imposes rates from a low 10% to highs of 40% plus. It is set to reshape global trade dynamics.

Countries with trade deficits, where the U.S. imports more than it exports, now face a 15% minimum tariff. (File photo: Reuters)

Washington, D.C.: With the clock ticking toward a self-imposed midnight deadline, the Donald Trump administration announced sweeping changes to the United States’ tariff structure late Thursday night. The policy marks the most extensive single-day revision to U.S. trade duties in decades.

The plan includes a “universal” tariff rate of 10% on imports from nations that run trade surpluses with the United States. First implemented on April 2, the baseline duty remains in place for the majority of U.S. trading partners.

But that is only part of the overhaul.

Countries with trade deficits, where the U.S. imports more than it exports, now face a 15% minimum tariff, replacing a patchwork of rates from April’s “reciprocal” tariff schedule. For more than a dozen countries, new rates go higher.

“President Trump is using tariffs as a necessary and powerful tool to put America First after many years of unsustainable trade deficits that threaten our economy and national security,” the White House said in a statement.

The administration will delay enforcement until August 7, allowing U.S. Customs and Border Protection to make necessary adjustments. Officials say the formula behind the new rates ties directly to trade imbalances and national security considerations.

Canada Faces 35% Tariff as Trump Targets Fentanyl Pipeline

Alongside the global changes, Trump also signed an executive order to raise tariffs on Canadian goods from 25% to 35%, effective from Friday.

The decision follows White House frustration over Canada’s efforts to stem the northbound flow of fentanyl. A White House fact sheet described Ottawa’s response as inadequate, citing its role in drug transshipment networks.

To prevent backdoor tariff avoidance, any Canadian goods routed through third countries will be taxed at 40%. However, items covered by the United States-Mexico-Canada Agreement (USMCA) are exempt.

“We have a good relationship with Canada... But they have not shown the same level of constructiveness that we have seen from the Mexican side,” a senior administration official said on a press call.

Canadian politician and businessman Ontario Premier Doug Ford did not hold back. “Canada should not settle for anything less than the right deal. Now is not the time to roll over. We need to stand our ground... The federal government needs to maximise our leverage and stand strong in the face of President Trump’s tariffs.” he said in a post on X.

Last year, Canada was the top destination for U.S. exports, purchasing $349 billion in American goods, while shipping $413 billion into the United States, ranking third globally among import sources.

Taiwan Calls 20% Tariff ‘Provisional’ as Talks Continue

In East Asia, the spotlight turned to Taiwan. The United States announced a 20% tariff on Taiwanese exports, a reduction from the prior 32% reciprocal rate but still higher than the universal baseline.

Taiwan President Lai Ching-te responded with a cautiously worded message posted on Facebook.

“Earlier, the US side informed Taiwan’s negotiating team in Washington that a provisional tariff rate of 20% would be applied to Taiwan,” he wrote.

“The two sides have yet to hold a concluding meeting due to procedural arrangements... If a final agreement is reached later, the rate may be lowered,” Lai further said in the post.

Taipei officials emphasised that broader talks remain underway, particularly around semiconductors and ongoing Section 232 investigations.

A Country-by-Country Breakdown

The tariff shake-up affects dozens of nations. Since April, the administration has reviewed its reciprocal trade position country by country. Trump now claims certain nations have moved closer to U.S. terms, while others failed to meet expectations.

“Some countries have agreed to, or are on the verge of agreeing to, meaningful trade and security commitments with the United States. Others have offered terms that, in my judgment, do not sufficiently address imbalances...,” the U.S. president said in a statement.

Among the new adjustments:

India: 26% → 25%

Vietnam: 46% → 20%

Switzerland: 31% → 39%

Myanmar, Laos: Reduced to 40%

Serbia, Iraq: Now at 35%

South Korea: Cut from 30% → 15%

Pakistan: Dropped to 19%

Bangladesh: Reduced from 37% → 20%

Philippines: Raised slightly to 19%

Lesotho, Botswana: Brought down to 15%

Several countries saw substantial relief. Fiji, Guyana, Madagascar, and Cambodia, once facing tariffs as high as 40-50%, now fall under the 15-20% range. The European Union will now face a 15% blanket rate on most goods, down from 20%.

Nations such as Syria (41%) and Switzerland (39%) landed among the highest revised tariffs. The full list reveals a patchwork of rate changes calibrated to each country’s trade behaviour.

India’s Position Remains Sensitive

India’s inclusion on the tariff sheet drew renewed attention, especially after recent tensions over its BRICS membership and oil imports from Russia.

The White House pegged India at a 25% rate, slightly down from April’s 26%, but well above the universal 10% baseline.

Trump had previously hinted at penalties against India over its energy purchases and growing economic ties with Russia and Iran.

“These are complex relationships and complex issues. I do not think things can be resolved overnight with India,” a senior official told reporters

Mexico Gets a 90-Day Tariff Pause

While Canada faces steeper penalties, Mexico appears to have earned goodwill in Washington. The Trump administration granted a 90-day pause on new tariffs for Mexican goods, citing progress in talks on fentanyl and cross-border trade.

“They have shown a level of constructiveness... very, very, very constructive,” the senior official said.

U.S. trade negotiators described the discussions with Mexican officials as among the most productive of any trading partner.

The new tariff policy is now locked in. Customs agencies across the country will begin implementing the rates starting August 7, capping off one of the most consequential nights in U.S. trade politics in recent memory.