US President Donald Trump has signed an executive order imposing tariffs on over 70 countries, shaking up global trade. The new tariffs, ranging from 10% to 41%, aim to fix what Trump calls unfair trade practices. India will face a 25% tariff, while Canada’s rate jumps to 35% due to disputes over the drug crisis. Meanwhile, Pakistan and Bangladesh see reduced rates at 19% and 20%. These changes, effective in seven days, have sparked debates worldwide. Let’s break it down for you.
What’s Happening with Trump’s Tariffs?
On Thursday, August 1, 2025, Trump signed an executive order that slaps new tariffs on goods from more than 70 countries. The goal? To address trade imbalances and protect American workers. According to the White House, these tariffs respond to a “national emergency” caused by persistent trade deficits. For instance, the US has a $45.7-billion trade deficit with India, making it a key target.
India’s 25% tariff remains unchanged, but an additional penalty looms due to its trade with Russia for oil and defense equipment. Canada, however, faces a steeper 35% tariff, up from 25%, starting immediately on August 1. The White House cites Canada’s failure to tackle the “illicit drug crisis” and its retaliatory measures against the US. Pakistan and Bangladesh, on the other hand, secured lower tariffs—19% and 20%, respectively—after recent trade deals.
Here’s a quick look at the tariff rates for key countries:
- 41%: Syria
- 40%: Laos, Myanmar
- 35%: Canada, Iraq, Serbia
- 30%: Algeria, Bosnia, Libya, South Africa
- 25%: India, Brunei, Kazakhstan, Moldova, Tunisia
- 20%: Bangladesh, Sri Lanka, Taiwan, Vietnam
- 19%: Pakistan, Malaysia, Indonesia, Cambodia, Philippines, Thailand
- 15%: Israel, Japan, Turkey, Nigeria, Ghana
- 10%: Brazil, United Kingdom, Falkland Islands
For a detailed breakdown, check out AMERICA NEWS WORLD for the full list of countries and rates.
Chart: Trump’s Tariff Rates by Country
Below is a chart showing the tariff rates for select countries, highlighting the impact on global trade:
This chart works on both mobile and desktop, giving you a clear view of the tariff impact. For more insights, visit AMERICA NEWS WORLD.
Why Are These Tariffs Happening?
Trump’s tariffs stem from his “America First” policy, which pushes for fair trade and stronger US manufacturing. He argues that countries like India and Canada have unfair trade practices, such as high tariffs on American goods. For example, India’s high duties on US products and its purchase of Russian oil have frustrated the Trump administration. Similarly, Canada’s 3% digital services tax and its stance on the drug crisis led to the tariff hike.
However, not everyone agrees with Trump’s approach. Economists warn that these tariffs could raise prices for US consumers. A study by the Bureau of Labor Statistics shows that 49% of tariff costs fall on US consumers, 39% on businesses, and only 12% on foreign exporters. This means Americans might pay more for imported goods like clothing, electronics, and food.
How Do These Tariffs Affect India, Canada, Pakistan, and Bangladesh?
India: The 25% tariff hits India hard, especially its $86.5-billion export market to the US. Sectors like textiles, pharmaceuticals, and IT services could face higher costs. Indian exporters worry about losing ground to competitors like Vietnam and Bangladesh, which have lower tariffs. The additional penalty for India’s Russia ties adds uncertainty.
Canada: The immediate 35% tariff disrupts Canada’s trade, particularly for non-USMCA goods like energy and potash. This could strain US-Canada relations, especially after Canada’s recognition of Palestine as a state sparked tensions.
Pakistan: Pakistan’s tariff dropped from 29% to 19% after a deal to develop its oil reserves with the US. This could boost Pakistan’s economy, but its textile and leather exports still face challenges.
Bangladesh: With tariffs reduced from 35% to 20%, Bangladesh’s clothing and leather industries benefit. However, competition with other low-cost exporters remains fierce.
For more details on global trade impacts, check out this BBC article.
What’s Next for Global Trade?
The tariffs take effect in seven days, except for Canada’s, which start immediately. Goods in transit by August 7 and arriving by October 5 are exempt. Meanwhile, China faces an August 12 deadline to finalize a trade deal, or its tariffs could rise again. The US has already collected $108 billion in tariff revenue in 2025, showing the scale of Trump’s policy.
However, these tariffs could spark retaliatory measures. Trump warned countries against raising their own tariffs, threatening to match any increases. This could lead to a global trade war, slowing economic growth. For instance, India’s exporters are already seeing order cancellations, and Canada’s economy could face further strain.
These tariffs affect more than just governments. They could raise prices for everyday goods like clothes, electronics, and food. For people in India and the US, this means higher costs and fewer choices. Small businesses and exporters in countries like Pakistan and Bangladesh might struggle to compete. Plus, the ripple effects could impact jobs and economies worldwide.
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