As President Donald Trump’s trade deadline edges closer, dozens of countries are facing punitive tariffs on exports to the United States, with Washington’s executive order naming 68 nations and the European Union for import duties of up to 50 per cent.
The tariffs were originally set to take effect on 1 August but have been delayed by a week, now scheduled for August 7, as the White House updates its schedules. The reprieve, however, has done little to ease concerns globally, particularly among smaller economies that lack the capacity to negotiate swiftly with the US.
Trump, who has claimed the new duties would encourage reshoring of manufacturing and force foreign governments to lower trade barriers, said on his Truth Social platform, “THE AUGUST FIRST DEADLINE IS THE AUGUST FIRST DEADLINE, IT STANDS STRONG, AND WILL NOT BE EXTENDED.”
Yet by Thursday night, the deadline had shifted.
Brazil, India hit early
Trump had already imposed tariffs on Brazil and India before the August deadline was reached. A 50 per cent duty on Brazilian imports was approved via executive order on Wednesday, though exemptions were made for aircraft, aluminium, and energy. Trump is reportedly irate over Brazil's prosecution of former president Jair Bolsonaro, who faces charges of attempting to overturn his 2022 election loss, a situation that echoes Trump’s own 2023 indictment on similar charges.
India too has been penalised, with a 25 per cent duty slapped on all its exports. According to the White House, one reason cited was India’s continued energy engagement with Russia.
Also read: World shares retreat after Trump new tariffs order
Widespread economic impact
According to reports, the list of affected countries spans both large and small economies. Taiwan, India, South Africa, Sri Lanka, Bangladesh and Algeria are among those facing significant hikes in tariffs, now ranging between 10 per cent and 40 per cent. Some countries saw slight reductions from April’s proposed levels, such as Cambodia, which dropped from 36 per cent to 19 per cent. Others saw increases, New Zealand, for instance, moved from 10 per cent to 15 per cent.
Lesotho, a small landlocked African nation already devastated by the earlier threat of tariffs, is now subject to a 15 per cent duty. The country’s apparel sector, once a key export driver to the US, has reportedly shed thousands of jobs.
Trump appeared to acknowledge the logistical limits of the White House in a remark earlier this month, “There’s 200 countries. You can’t talk to all of them.”
Fragile trade negotiations
While key trading partners such as the European Union, United Kingdom, Japan, Indonesia, and Vietnam have secured agreements, or the outlines of one, those deals often still include substantial duties. The Philippines, for instance, saw its tariff lowered from 20 per cent to just 19 per cent. South Korea agreed to a 15 per cent rate.
Other economies, including China and Mexico, have been granted temporary extensions. In Mexico’s case, the White House granted a 90-day reprieve due to the complexities of the US-Mexico-Canada Agreement (USMCA), negotiated during Trump’s first term.
Pakistan was among the latest to strike a deal. On Thursday, the Trump administration announced a bilateral agreement allowing for tariff relief and joint development of Pakistan’s vast oil reserves.
However, many of these agreements remain vague, lacking detail on long-term implications for affected industries or bilateral investment protections.
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