US President Donald Trump has launched a new round of massive tariffs targeting dozens of countries, including Canada, Brazil, India, Switzerland, and Taiwan.
A decree published on Wednesday sets tariffs ranging from 10% to 41% on products from 69 countries. Canada is hit with 35%, Brazil with 50%, India with 25%, Taiwan with 20% and Switzerland with 39%. These measures will take effect in seven days.
Some countries have negotiated reductions. Others have not had this opportunity. A temporary exemption is planned for goods shipped before the new tariffs come into effect.
Products from countries not affected by these announcements will remain subject to a 10% tax, which Trump nevertheless threatens to raise.
The administration says that other agreements are being finalized as part of a strategy to reduce trade deficits and support domestic industry.
On the eve of the deadline, Trump invoked emergency powers, intensified pressure on his counterparts, and maintained the hard line already announced in April, which was poorly received by the markets at the time.
In his executive order, Trump said that some partners had offered "insufficient" conditions to correct trade imbalances or align themselves with US economic and security priorities.
Details are still to come, particularly on "rules of origin," which could trigger even higher tariffs.
Canada and Mexico: two different treatments, two different narratives
A separate executive order targets Canada, raising certain tariffs to 35% from 25% as part of anti-fentanyl measures. Trump accuses Ottawa of failing to cooperate in the fight against drug trafficking. This contrasts sharply with Mexico, which has been given 90 days before its tariffs are raised to 30%. The aim is to allow time to negotiate a broader agreement.
Trump has lambasted Canada as "very badly run," while Ottawa has not yet responded officially but has already challenged these measures in the past. The Mexican exemption covers most non-automotive and non-metallic goods that comply with the USMCA agreement. However, metals and non-compliant vehicles will continue to be taxed at 50% and 25% respectively. According to Trump, Mexico has agreed to "immediately remove its many non-tariff barriers," without providing further details.
Mexican President Claudia Sheinbaum confirmed on X a "very good" telephone conversation with Trump, which she said had prevented the new taxes from coming into force.
India: deadlock on agriculture and tensions over Russian oil
India is facing a 25% tariff across the board due to a lack of agreement on access to its agricultural sector. Trump also threatened New Delhi with sanctions over its purchases of Russian oil. The Indian government, which strongly defends its agriculture, has promised to protect this vital sector. Trump's comments caused the rupee to fall and sparked outrage among the opposition.
Brazil: punitive taxes and diplomatic tensions
On Wednesday, Trump imposed a 50% tax on Brazilian exports amid tensions with Brasilia and legal proceedings against Jair Bolsonaro. However, aerospace, energy and orange juice are exempt from these sanctions.
A legally contested strategy
Legally speaking, the legitimacy of this tariff offensive is being called into question. Several federal judges doubt that Trump can invoke the 1977 International Emergency Economic Powers Act to justify these measures. In May, a trade court had already ruled that he had overstepped his powers.
China: last chance before August 12
Meanwhile, China has until August 12 to reach a lasting agreement with the United States. Two sets of preliminary agreements were signed in May and June. According to a US official, negotiations are progressing.
Tariffs are beginning to weigh on prices
These tariff increases come at a time when inflation is showing signs of picking up in the US. According to the Commerce Department, prices for furniture and household equipment jumped 1.3% in June, their biggest increase since March 2022. Leisure goods and vehicles rose 0.9%, and clothing rose 0.4%.
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