President Donald Trump on Thursday signed a wide-ranging executive order that formalizes reciprocal tariffs on dozens of countries, including the European Union, Japan, South Korea, and other major U.S. trading partners. The tariffs, part of Trump’s aggressive “America First” trade agenda, will go into effect on August 7.
The action comes just hours before an August 1 deadline Trump had set for nations to strike fair trade agreements with the United States — or face automatic penalties.
Tariff Structure: Surplus vs. Deficit
The order outlines a tiered tariff system based on each country’s trade balance with the United States:
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10% tariff on countries where the U.S. has a trade surplus
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15% tariff on countries where the U.S. runs a trade deficit
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Higher rates (up to 41%) for countries that have failed to reach agreements or refused to negotiate
Major U.S. Trade Partners Affected
| Country/Region | Tariff Rate |
|---|---|
| European Union (27 nations) | 15% |
| Japan | 15% |
| South Korea | 15% |
| United Kingdom | 10% |
| Mexico | 25% (temporary for 90 days) |
| China | Deadline extended to Aug. 12 |
High-penalty rates include:
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Syria – 41%
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Laos – 40%
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Switzerland – 39%
Trump: Non-Reciprocal Trade is a National Security Threat
“Some trading partners have agreed to meaningful commitments… Others have failed to align sufficiently with the United States,” Trump wrote in the order.
The executive order describes foreign economic policies, wage suppression, and non-tariff barriers as an “extraordinary threat” to U.S. economic and national security.
Extended Negotiations for China and Mexico
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China: Deadline pushed to August 12 as talks continue
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Mexico: Faces a 25% tariff during a 90-day negotiation window, reduced from a previously threatened 30%
What’s at Stake
Trump’s tariff regime is designed to correct decades of trade imbalances and force foreign governments to eliminate barriers to U.S. exports.
Critics argue tariffs can raise consumer prices and escalate trade tensions, but Trump maintains the costs are outweighed by gains in American jobs, manufacturing, and sovereignty.
“We are no longer going to subsidize the rest of the world’s prosperity at the expense of the American worker,” a senior administration official said Thursday.
