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American Focus > Blog > World News > Trump’s tariffs come into effect
World News

Trump’s tariffs come into effect

Last updated: August 7, 2025 12:00 am
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Trump’s tariffs come into effect
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President Donald Trump has implemented higher tariff rates ranging from 10% to 50% on numerous trading partners, which have now gone into effect. This move is part of his strategy to reduce US trade deficits without causing major disruptions to global supply chains, increased inflation, or severe retaliation from other countries.

The US Customs and Border Protection agency started collecting these higher tariffs at 4pm (NZ time) after much anticipation over Trump’s final tariff rates and intense negotiations with major trading partners. Goods that were loaded onto US-bound vessels and in transit before the midnight deadline are allowed to enter at lower tariff rates before October 5, according to a notice from CBP to shippers issued recently.

Trump has made several adjustments to his tariff plan, imposing significantly higher rates on certain countries. For instance, goods from Brazil now face a 50% tariff, Switzerland 39%, Canada 35%, and India 25%. Additionally, a separate 25% tariff on Indian goods was announced to be imposed in 21 days due to India’s purchases of Russian oil.

Despite the uncertainties surrounding these tariff changes, Trump has emphasized the potential economic benefits for the US, particularly from countries he believes have exploited the country. Several major trading partners, which represent about 40% of US trade flows, have reached agreements with Trump for trade and investment concessions, resulting in reduced base tariff rates to 15%.

While some countries have managed to secure lower rates, others like India and Canada are facing high duties and are scrambling to find solutions. Trump’s order also includes provisions to address the issue of trans-shipped goods evading tariffs.

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These tariffs are part of a larger strategy that includes sectoral tariffs on various goods and services. The ongoing trade tensions with China are another significant aspect of Trump’s tariff strategy, with potential tariff increases looming unless an extension is approved.

Financial markets have shown resilience to these tariff changes, with stock markets remaining stable and the dollar slightly decreasing. However, the impact of these tariffs is evident in rising prices for various consumer goods and materials, affecting companies across different industries.

Overall, Trump’s tariff strategy is reshaping global trade dynamics and creating challenges for businesses worldwide. The implications of these tariffs on the economy and international relations are yet to fully unfold.

TAGGED:effectTariffsTrumps
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