The United States has raised its average import tariffs to the highest level in more than 100 years, marking a dramatic escalation in President Donald Trump’s trade strategy.
The new rates, ranging from 10% to 50%, took effect at 12:01 a.m. EDT on Thursday. The U.S. Customs and Border Protection agency began collecting the duties after weeks of tense negotiations and uncertainty over Trump’s final decisions.
Major economies such as Switzerland, Brazil, and India are now scrambling to secure concessions. Some have won reduced rates, while others face steep penalties. Eight key trading partners, representing about 40% of U.S. trade, have reached deals to lower their base tariff rates. The European Union, Japan, and South Korea secured 15%, Britain 10%, and several Southeast Asian nations, including Vietnam and Indonesia, around 19% to 20%.
However, others were not as fortunate. Brazil was hit with a 50% rate, Switzerland 39%, Canada 35%, and India 25%, with an additional 25% scheduled in three weeks over purchases of Russian oil. Trump framed the move as a matter of fairness, saying billions in tariff revenue would now “start flowing into the USA” from countries he claims have long taken advantage of U.S. trade.
The president’s top trade adviser, Jamieson Greer, defended the policy as a step toward restoring U.S. manufacturing and correcting global imbalances. “The rules of international trade cannot be a suicide pact,” he wrote, calling the tariffs part of a broader push for reform.
While Trump’s supporters highlight potential gains in revenue—Commerce Secretary Howard Lutnick projects $50 billion per month—critics warn of rising costs for businesses and consumers. Economists note that tariffs are paid by importers, often passed on in full or part to end buyers. Early data from the Commerce Department shows higher prices for cars, recreational goods, and other imports.
Some companies are already feeling the impact. Toyota cut its profit forecast by 16%, citing a nearly $10 billion hit from U.S. car tariffs. Others, like Sony and Honda, expect less damage after Japan struck a bilateral deal with Washington.
Global reactions have been swift. Brazilian President Luiz Inacio Lula da Silva refused to seek a personal call with Trump but said his government would continue talks to lower the rate. Indian Prime Minister Narendra Modi was equally firm, insisting he would protect the country’s farmers and signaling closer ties with Russia. Both Brazil and India are exploring a joint BRICS response, with China’s involvement, to counter U.S. measures.
Switzerland’s President Karin Keller-Sutter returned empty-handed from last-minute negotiations in Washington but pledged to continue discussions. South Africa also failed to secure relief, though talks will resume. Vietnam, having negotiated down from 46% to 20%, still aims for deeper cuts.
Trade experts predict significant supply chain adjustments as companies shift sourcing to avoid the highest tariffs. William Reinsch of the Center for Strategic and International Studies expects a “new equilibrium” but warns that countries facing steep rates will remain under pressure to strike deals.
The tariff hikes extend beyond country-specific duties. Trump’s trade agenda includes sectoral tariffs on industries such as semiconductors, autos, steel, and pharmaceuticals, with some microchip duties potentially reaching 100%. China faces a separate set of measures, with a possible increase looming in mid-August.
Supporters argue these moves are necessary to pressure countries like China and Russia over geopolitical issues, including the war in Ukraine. Critics, however, fear the policy could lead to higher inflation, retaliatory tariffs, and long-term disruption of global supply chains.
For now, Trump appears committed to his hardline approach. “There’s no obstacle that cannot be removed or cut down to size,” one political analyst observed, noting that the administration views the tariffs as leverage for broader strategic goals.
With trade talks intensifying across continents, the Trump import tariffs have become more than just an economic measure—they are a central front in the president’s international policy, one that could reshape global commerce for years to come.
