Trump Unleashes New Tariff Regime, Targets India with 25%, Canada with 35%.
US President Donald Trump on Thursday signed an executive order imposing steep reciprocal tariffs on more than 70 countries, citing what he called “persistent trade imbalances” and “national security threats.” The move includes a 25% tariff on Indian imports and a sharp increase in duties on Canadian goods—from 25% to 35%.
Canada, India Among Key Targets
The new 35% tariff on Canadian imports took immediate effect on August 1, with the White House accusing Ottawa of failing to act on the “illicit drug crisis” and retaliating against US measures to curb it.
India, meanwhile, faces a 25% tariff, with US officials expressing frustration over New Delhi’s trade practices and broader geopolitical positions—particularly its continued oil purchases from Russia and membership in multilateral blocs like BRICS.
Tariff Breakdown: Who’s Paying What?
According to a White House factsheet, the tariffs range from 10% to 41%, depending on the country:
41%: Syria
40%: Laos, Myanmar
39%: Switzerland
35%: Canada, Iraq, Serbia
30%: Algeria, Bosnia and Herzegovina, 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, UK, Falkland Islands
For the European Union, a unique adjustment applies: goods with US tariffs above 15% are exempt from the new order, while goods currently under 15% will have their rates raised to meet a new 15% minimum.
When Do the Tariffs Take Effect?
For most countries, the new tariff rates will be enforced starting seven days after the order was signed. However, a transition window is available: shipments loaded before August 7 and arriving before October 5 will be exempt, provided they were already in transit.
Canada is the only exception—its new 35% rate kicked in immediately on August 1.
The National Emergency Behind the Move
This executive order follows an earlier declaration of a national emergency under Executive Order 14257, in which Trump argued that persistent trade deficits pose a “serious threat” to US national security.
In Thursday’s statement, Trump said the updated tariffs were based on fresh intelligence and input from senior advisers. “Some trading partners have failed to act in good faith or refused to align with the US on economic and security matters,” he said. “These steps are long overdue.”
China Deal Still in Limbo
US Treasury Secretary Scott Bessent confirmed this week that while a potential deal with China is under negotiation, final approval still rests with President Trump. Talks with Chinese officials in Stockholm have made progress, but key issues remain unresolved.
China faces an August 12 deadline to finalise a long-term trade agreement, after earlier preliminary deals aimed at easing tensions and addressing rare-earth mineral trade restrictions.
US-India Trade Tensions Continue
A senior US official told Reuters that the new tariff on India could severely impact bilateral trade talks. “India has historically been a closed market,” the official said. “There are deeper geopolitical concerns as well—BRICS alignment, Russian oil imports, and limited market access remain sticking points.”
India has yet to respond officially to the announcement. The new duties come at a time when both nations are navigating a delicate balance between strategic cooperation and trade disagreements.
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