Trump Signs New Tariff Increase

WASHINGTON – President Donald Trump reaffirmed his commitment to raise tariffs on foreign imports, officially signing the measure late Thursday. This new order raises import taxes on goods from nearly all US trading partners, marking a significant shift in trade policy.

As a result, markets reacted negatively on Friday, influenced by Trump’s directive and new employment data indicating weaker growth.

The President implemented a 15% basic tariff on products imported from approximately thirty countries across five continents, which includes the 27 member countries of the European Union. Some countries saw even higher rates; for instance, Nicaragua was hit with an 18% tariff, while tariffs on goods from South Africa reached 30% and Brazil topped 50%.

The White House views these “mutual” tariffs as a crucial strategy to prioritize American interests after years of trade deficits that endanger the economy and national security, as highlighted in a press release associated with the executive order.

Trump characterized these measures as “mutual” since they respond to countries that maintain a trade deficit with the US—essentially selling more to the US than they purchase.

US Trade Representative Jamieson Greer described the new rates as “historical,” noting that they have achieved outcomes that traditional multilateral negotiations failed to realize, like increasing market access for US exporters and raising tariffs to safeguard vital American industries.

This tariff announcement coincided with disappointing employment figures, which reportedly triggered a sell-off in major US stock indices, according to financial media coverage.

On Friday afternoon, Trump addressed the significant drop in employment numbers for May and June, as reported by the Labor Statistics Commissioner.

Customs and Legal Challenges

This year, Trump became the first president to impose tariffs under the International Emergency Economic Force Act of 1977, prompting legal challenges from small businesses and states led by Democrats. These cases are now facing scrutiny in federal court.

Customs duties represent taxes on imported goods, which US companies and other buyers pay to the government.

Earlier, under an emergency declaration, Trump postponed new import taxes, which he called “liberation day,” after global markets reacted negatively. He has also announced a separate 35% tax on certain products imported from Canada that fall outside existing trade agreements.

Additionally, tariffs on some Mexican goods remain at 25%, although reports suggest negotiations may pause for 90 days. Meanwhile, products from China are subject to a 30% import tax.

Mark Norland from the Peterson Institute for International Economics expressed concern over the latest tariff rates, labeling them “unfortunate.” He warned they could drive up prices and hinder growth in the US, while also questioning their long-term legality.

Norland added that the countries facing the highest tariffs—like Laos, Syria, and Myanmar—are among those least impacted by such financial measures.

The 15% tariff rates reflect Trump’s recent trade actions involving nations like Japan and South Korea, although many specifics remain unclear.

Norland commented, “I really wonder what agreements were made here, as these are not treaty-level commitments passed by any parliament.”

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