The United States has officially raised tariffs on dozens of countries, including India, under a new executive order signed by President Donald Trump. These new tariffs, which took effect Thursday, are part of Trump’s broader plan to reshape global trade by punishing what Washington sees as unfair trade practices. India now faces a 25-percent duty on many goods, which is set to double to 50 percent in three weeks.
Several other countries, including Japan, South Korea, and members of the European Union, have also been affected by these tariffs, though their duties currently stand at 15 percent. However, nations such as Syria, Myanmar, and Laos are seeing the most severe impact, with tariffs rising to 40 or 41 percent. These increases come even as some countries have struck deals with the US in hopes of avoiding harsher penalties.
Despite the sweeping changes, sector-specific goods like steel, automobiles, pharmaceuticals, and semiconductors are subject to separate tariff rules. President Trump announced a 100-percent tariff on semiconductors, although Taiwan’s TSMC is exempt due to its US-based factories. Industry experts warn that these moves could hurt smaller American businesses, drive up prices, and even increase inflation in the long run.
Some economists believe the price hikes will be temporary, but others caution that companies may soon pass the added costs onto consumers. With the back-to-school shopping season approaching, the timing of these tariffs could become politically significant. Businesses had earlier stocked up during a 90-day pause, but now those supplies are running low, and price impacts are expected to follow.
The tariff decision has also caused tension in existing trade deals. Japan, for example, is still waiting for the US to clarify when lower auto tariffs will begin. Meanwhile, the EU is lobbying for its wine industry to be exempt from duties, pointing out the vital role wine plays in restaurant revenues. Confusion remains over whether recent agreements are being fully honored.
In addition to India, Trump has targeted other nations for political reasons. Tariffs on Brazilian goods rose sharply after the US accused former President Jair Bolsonaro of plotting a coup. While some Brazilian products like orange juice and civil aircraft are exempt, items such as coffee, beef, and sugar are not. Legal challenges against these broad tariff powers are expected to head to the US Supreme Court.