() 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 few agreements, Trump is ramping up the pressure, setting a new deadline of Aug. 1 before harsher tariffs kick in.
At the same time, Trump has 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 also being enforced.
Recently announced tariffs currently in effect:
- 10% global baseline tariff on nearly all U.S. imports (Canada and Mexico excluded)
- 25% tariff on imports from Mexico and Canada 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
- 25% tariff on vehicle imports and auto parts
- 30% tariff on most Chinese imports (some electronics, including smartphones, face a 20% tariff)
- 54% tariff on packages under $800, “de minimis” exemption eliminated
- 50% tariff on steel and aluminum imports, U.K. at 25%
Tariffs that have recently been announced/threatened
- New “reciprocal” tariff rates to take effect on Aug. 1
- Following a 90-day pause, Trump has been issuing letters informing dozens of countries of their updated tariff rates
- 30% tariff on Mexico and the European Union starting Aug. 1
- 35% tariff on Canada to take effect Aug. 1
- 50% tariff on Brazil to take effect Aug. 1
- 50% tariff on copper imports, effective Aug. 1
- Up to 100% tariffs on Russia if it doesn’t reach a ceasefire with Ukraine in 50 days
- Up to 200% on pharmaceuticals “very soon,” Trump said earlier this month
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 three new trade agreements so far.
The White House has begun sending letters to countries, informing them of a new deadline: Aug. 1. At that point, Trump says, imports from nations like Japan and South Korea, both major car exporters, would face a 25% tariff.
Other countries, including South Africa (30%) and Brazil (50%), would face even steeper rates.
It remains to be seen if Trump will follow through on those threats. So far, Wall Street has been unfazed, suggesting investors have their doubts.
As of July 14, consumers are facing an overall average effective tariff rate of 20.6%, the highest since 1910, according to the Budget Lab at Yale University.
The federal government has collected $100 billion in tariffs and excise taxes during 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, currently face a 25% tariff on goods that don’t comply with the countries’ free trade agreement.
However, that rate is set to rise Aug. 1 following Trump’s announcement of a 35% tariff on imports from Canada, with Mexico facing a 30% levy that same day.
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 Monday.
If the tariff hikes move forward, families could face higher grocery bills, and American businesses would see increased production costs two trends that have already begun to emerge. 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 work toward a new trade framework with the U.S. and has made “vital progress to stop the scourge of fentanyl.”
Meanwhile, Mexican President Claudia Sheinbaum has expressed confidence that the countries will come to terms and emphasized the importance of keeping a cool head during a public appearance Saturday.
Trump has imposed lower duties on Canadian energy products and fertilizer, which are currently subject to a 10% tariff. Those exclusions are expected to stay in place, though the president hasn’t made a final decision, according to Reuters.
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 announced a 50% tariff on copper, citing national security concerns and declaring on Truth Social that America will “once again, build a DOMINANT Copper Industry.”
Trump has also threatened to impose a 200% tariff on pharmaceutical imports “very soon” but clarified those levies would not take effect immediately.
“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 recent Cabinet meeting. “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.
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.
Earlier this month, Trump announced a deal with Vietnam that would impose a 20% tariff on Vietnamese products entering the U.S., as well as a 40% tariff on any transshipped products, goods from other countries passing through Vietnam en route to the U.S.
Trump has also 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 has extended the negotiation deadline to Aug. 1 and sent letters warning of potential action if agreements aren’t reached.
Kevin Hassett, the director of the U.S. National Economic Council, told ABC News on Sunday morning that the president had seen “some sketches of deals” negotiated by his advisers, but that he thinks they “need to be better.”
When asked whether the threatened tariffs are real, or merely a negotiating tactic, Hasset said, “These tariffs are real if the president doesn’t get a deal that he thinks is good enough, but, you know, conversations are ongoing, and we’ll see where the dust settles.”
On Tuesday, Trump said he had finalized a deal with Indonesia in which goods from the country will face a 19% tariff while U.S. exports won’t be taxed.
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 are set to take place July 31.
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.
