U.S. President Donald Trump signed an executive order on Thursday imposing higher customs tariffs on products from dozens of countries, a move aimed at “restructuring global trade to benefit American workers,” according to a White House statement.
The tariffs will come into effect and begin being collected on August 7, not August 1 as previously scheduled, according to a senior administration official.
Countries that signed trade agreements before the deadline will face the previously announced tariff rates. The European Union, Japan, and South Korea will see their products taxed at 15%, while the United Kingdom will face a 10% tariff.
Most countries will be subject to a 15% tariff, while Canada will face a 35% rate (up from 25%) following its announcementto recognize the State of Palestine, under conditions.
The agreements reached so far were concluded through negotiations whose details were often vague. These are expected to be clarified in due course, with more specific documents reportedly on the way.
Countries that failed to reach agreements with the Trump administration will see tariffs on their products ranging from a 10% “base” level to as high as 41%, as in the case of Syria.
Trump claims that the agreements and the new tariffs will generate revenue for the U.S. government, which is burdened with massive debt.
However, the economic impact of the tariffs remains a concern for economists, who warn they could further fuel inflation, which rose to 2.6% in June, and harm growth in the world’s largest economy.
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