WASHINGTON () President Donald Trump began imposing new import taxes on goods from several countries Thursday as part of his strategy to reduce the trade deficit and encourage foreign investment in the United States.
As of midnight, products from more than 60 countries and the European Union became subject to tariffs ranging from 10% to 50%. Imports from the EU, Japan and South Korea are now taxed at 15%, while goods from Taiwan, Vietnam, and Bangladesh are taxed at 20%. Trump also expects the EU, Japan and South Korea to invest hundreds of billions of dollars in the U.S.
In a Truth Social post, Trump claimed other countries had been “laughing” for years over unbalanced tariffs, and that the only thing that could block what he described as “America’s greatness” is a “radical left court.”
The legality of Trump’s actions is expected to face scrutiny, potentially reaching the Supreme Court under the International Emergency Economic Powers Act.
$30B in tariff revenue collected in July: Treasury Dept.
While the court battle plays out, the administration has touted its financial gains. The Treasury Department reported nearly $30 billion in tariff revenue last month, a more than 240% increase over the same period last year.
Trump has continued to promote tariffs as a path to reducing the trade deficit. However, many importers sought to avoid the taxes by importing more goods before the taxes went into effect. As a result, the $582.7 billion trade imbalance for the first half of the year was 38% higher than in 2024.
India hit with 50% tariff over Russian oil
On Wednesday, Trump doubled tariffs on Indian imports to 50%, citing the country’s continued purchase of Russian oil.
India, the second-largest buyer of Russian crude behind China, currently buys 38% of Russia’s oil exports.
Trump also warned similar tariffs could be applied to China if it doesn’t scale back oil purchases from Moscow, part of his broader effort to push for a ceasefire in Ukraine.
How will markets react to tariffs?
Markets have remained solid through Trump’s tariff announcements. The S&P 500 has climbed more than 25% since April, and the White House has pointed to recent tax cuts as supporting economic growth.
Still, consumer costs are rising. Yale Budget Lab projects that as the new tariffs take effect, consumers will see an average tax of 18.3%, the highest since 1934, costing the average American household around $2,400.
The apparel industry is already feeling the effects, with 97% of clothing and footwear imported, mainly from China, which is still negotiating a trade deal with the U.S.
The Footwear Distributors and Retailers of America estimated prices for shoes are up 5% to 10% for the back-to-school shopping season.
