Trump Imposes New Tariffs, India Faces 25% Duty; Pak Gets a Cut

• US President Donald Trump has signed an executive order imposing new tariffs on 69 trading partners.
• The new tariffs, ranging from 10% to 41%, are set to take effect in seven days.
• India to face a 25% tariff on its goods after trade talks stalled over agricultural access.

GG News Bureau
Washington, 1st Aug:  In a move to reshape global trade in favor of US businesses, President Donald Trump has signed a new executive order imposing higher tariffs on dozens of trading partners, with the new rates set to take effect in seven days. The tariffs, ranging from 10% to 41%, apply to 69 countries and are intended to address what the President termed “imbalances in our trading relationship.”

The new duties target various partners with different rates, including a 41% tariff on Syria, 50% on Brazil, 39% on Switzerland, and 20% on Taiwan. Notably, India’s talks with the US appear to have stalled, leading to an impending 25% tariff on Indian goods. The order also included an unspecified penalty for India’s continued purchases of Russian oil. India’s government, facing domestic pressure, has vowed to protect its labor-intensive farm sector, an issue that reportedly caused the breakdown in negotiations.

In a stark contrast, Pakistan received a significant tariff reduction, with duties on its imports slashed from 29% to 19%. This decision aligns with the Trump administration’s broader geopolitical and trade strategy.

Other key developments from the order include:

• Canada: Duties on many goods were raised to 35% from 25% due to what the White House cited as a “failed to cooperate” in curbing fentanyl flows into the US.
• Mexico: Was granted a 90-day reprieve from a 30% tariff on many goods to allow for further negotiations. However, tariffs of 50% on steel and aluminum and 25% on autos remain in effect.
• Brazil: Received a steep 50% tariff, a move linked to a dispute over Brazil’s prosecution of former President Jair Bolsonaro.
• South Korea: Reached an agreement to accept a 15% tariff, down from a threatened 25%, in exchange for a pledge to invest $350 billion in US projects.

The executive order stated that the new tariffs are a response to partners who have “offered terms that, in my judgment, do not sufficiently address imbalances in our trading relationship or have failed to align sufficiently with the United States on economic and national-security matters.” Meanwhile, an unresolved trade tussle with China continues, with Beijing facing an August 12 deadline to reach a durable tariff agreement with the administration.