Trump’s Increased Tariffs on Imports from Dozens of Countries Now in Effect

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Higher import tariffs introduced by United States President Donald Trump have officially taken effect, targeting over 60 countries. The new measures are aimed at correcting what Washington sees as unfair trade practices, but they have sparked concern among small businesses and economists who warn of potential inflationary consequences.

The tariffs, described by the administration as “reciprocal,” were enacted through an executive order and began being collected by the US Customs and Border Protection (CBP) agency from 00:01 Eastern Daylight Time (EDT) on Thursday, following protracted negotiations with several major trading partners. These duties vary widely, with imports from Brazil facing rates as high as 50 percent and those from the United Kingdom subject to a 10 percent tariff.

President Trump has promoted the move as a significant source of revenue for the US government, suggesting that tariff collections could exceed $300 billion annually. “The only thing that can stop America’s greatness would be a radical left court that wants to see our country fail,” Trump stated on his Truth Social platform.

Earlier this year, the administration had paused the planned increases in April, maintaining a standard 10 percent tariff. However, the policy has since evolved, with substantial rate hikes introduced. Brazil’s exports are now facing a 50 percent duty, Switzerland 39 percent, Canada 35 percent and India 25 percent. Trump further announced that India could see its tariff rate rise to 50 percent later this month unless it ceases oil imports from Russia.

The rationale given for these changes is to address trade imbalances and protect American industries. Yet the ripple effects could be felt across various sectors. For instance, Alan Fisher of Al Jazeera, reporting from Washington, DC, noted that the sharp increase in tariffs on Brazilian goods could impact the US coffee market, which has already been under pressure due to adverse weather conditions in key producing regions. Fisher explained that both large and small American coffee businesses source much of their supply from Brazil.

While the administration insists the tariffs are grounded in economic strategy, critics argue that political motivations may be at play. Some have linked the move against Brazil to ongoing legal actions against former President Jair Bolsonaro, a known ally of Trump.

Several countries have reached agreements with the US to establish baseline tariffs. The European Union (EU), Japan, and South Korea have settled on a 15 percent rate. The United Kingdom secured a 10 percent rate, while Vietnam, Indonesia, Pakistan, and the Philippines agreed to tariffs of 19 or 20 percent.

The executive order also includes provisions to penalise transshipped goods, products routed through third countries to bypass US tariffs. Any such goods identified by authorities may be subject to an additional 40 percent duty. However, the enforcement mechanism for detecting transshipment has not been clearly outlined.

John Diamond, an economist at the Center for Public Finance at Rice University’s Baker Institute for Public Policy, pointed out the economic drawbacks of the tariff hikes. “There will be winners and losers,” Diamond said in an interview with Al Jazeera. “You’re going to see inefficiencies along with political kickbacks and punishments targeting adversaries.”

In a further escalation, President Trump has also announced a forthcoming 100 percent tariff on foreign-manufactured semiconductors. Exemptions will be granted to companies that have invested significantly in the US, as part of a broader effort to strengthen domestic chip manufacturing.

While the administration maintains that the measures are necessary for long-term economic security, many in the business community remain cautious. With global supply chains already under strain, the broader impact of the tariffs remains to be seen.