Trump determines new tariff rates for multiple countries

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On July 31, local time, US President Trump signed an executive order, determining the "reciprocal tariff" tax rate imposed on many countries and regions, with specific tax rates ranging from 10% to 41%.

Specifically, the executive order states:

Syria has the highest "reciprocal tariff" rate, set at 41%

·Myanmar and Laos are 40%

·Switzerland is 39%

·Algeria is 30%

·India 25%

·Vietnam is 20%

· 19% of the Philippines, Thailand, Cambodia and Indonesia

·Brazil and the UK are the lowest tariffs, set at 10%

·The tariff rate in most countries and regions is set at 15%, including Japan, South Korea, Israel and Turkey;

·For EU countries, if the current tariff on goods is less than 15%, it will be supplemented to 15%; if it is higher than 15%, it will not be added.

Raise Canadian tariff rate to 35%

At the same time, earlier that day, the White House said that US President Trump has signed an executive order to raise the tariff rate on Canada from 25% to 35%, and the new tariffs will take effect on August 1.

The White House pointed out in a statement that the tax increase was "to deal with Canada's ongoing inaction and retaliation", and said that the president "determines it necessary to effectively respond to the current emergency situation by raising the tax rate."

U.S.-Mexico tariff agreement to extend 90 days

Regarding Mexico, Trump said the complexity of reaching an agreement with Mexico is different from that of other countries, who agreed to extend the agreement between the two countries for 90 days, that is, Mexico will continue to pay 25% fentanyl tariffs, 25% automobile tariffs and 50% steel, aluminum and copper tariffs.

Trump said Mexico has agreed to immediately lift many of the non-tariff trade barriers it has set. The United States will negotiate with Mexico within the next 90 days, with the goal of signing a trade agreement within 90 days or more. The two sides will continue to cooperate in all aspects of border security, including drugs, drug distribution and illegal immigration.

Mexican President Sinbaum said that the two sides agreed to delay the implementation of the 30% tariff on Mexico announced by President Trump on July 12 by another 90 days, and the two sides will use these 90 days to continue negotiations in order to reach a long-term agreement.

About Transfer

At the same time, Trump's executive order also stated that it did not state the unified application of the 10% tariff rate unless otherwise specified. In addition, if any country or region evades tariffs through third-place transshipment, its goods will be subject to an additional 40% tariff.

In addition, a senior U.S. government official said that the United States will implement new rules of origin in the coming weeks to determine tariff rates for transshipped goods.

U.S. tariffs plant seeds for its own isolation

Economists generally believe that the U.S. government has seriously underestimated the impact of tariff policies on U.S. businesses and consumers and has the potential to weaken the stability of the global trade system.

In short, Trump, who claims to be a trading master, weaponized tariffs to resolve the debt crisis with his wishful thinking. As Trump himself said, negotiations depend on whether there are cards in his hand. He adopted the powerful means of "Take or Leave", especially setting tariff barriers against his allies, which not only caused doubts and divisions from the "Make America Great Again" (MAGA) camp, but also seriously damaged the global trade system. In fact, Brazil, which dares to "struggle", has obtained a minimum tax rate of 10% like the United States' closest ally, the United Kingdom...

In short, as economists say, the key is that "although the United States is imposing tariffs on the world, the world does not impose tariffs on each other." In the end, this may unconsciously push the world further and further, accelerating the process of "de-Americanization" of global trade.