President Donald Trump this week extended his “Liberation Day” tariff pause again and sent nearly a half dozen letters to trading partners announcing new tariff rates for their countries.
The higher tariffs would kick in on Aug. 1 unless the countries can seal a new trade deal with the United States.
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Trump’s tariff campaign began on April 2 when he announced “Liberation Day” tariffs on U.S. trading partners. Each country would see at least a 10% baseline tariff, and more than 50 other countries were hit with additional higher rates.
In announcing the new rates, Trump declared a national emergency caused by the “massive U.S. goods trade deficit.” The higher tariffs were needed to correct persistent trade imbalances caused by “a lack of reciprocity” with other countries and “unfair tariff and non-tariff barriers,” according to a White House fact sheet.
The Liberation Day announcement was a jolt to the economy, and stocks tumbled. Trump responded on April 9 by freezing the initial tariffs, except for those imposed on China. The White House said it would use the pause to negotiate with countries directly on new trade pacts, with the ambitious goal of “90 deals in 90 days.” So far, three deals have been announced with China, Vietnam, and the United Kingdom.
The 90-day pause was set to expire on July 9, but Trump extended the deadline to Aug. 1, according to an executive order. That means the highest rates are on hold — for now.
Trump sent letters to the following countries announcing their new rates: Cambodia, Laos, Myanmar, Sri Lanka, Iraq, Bangladesh, Serbia, Thailand, Bosnia and Herzegovina, Indonesia, Libya, Moldova, Algeria, South Africa, Tunisia, Kazakhstan, South Korea, Brunei, Japan, Malaysia, Philippines, and Brazil.
An additional letter went to Canada on July 10 announcing a 35% rate on Aug. 1. Trump’s trade standoff with Canada and Mexico pre-dated “Liberation Day” with an order on Feb. 1 for 25% tariffs on the two major trading partners, which has since been modified.
Here’s everything you need to know about the current tariff rates.
Highest rates
When Trump announced his “Liberation Day” tariffs in April, the southern African country of Lesotho was singled out for the highest rate of 50%. The tiny nation was followed by Cambodia at 49% and Laos at 48%. However, the tariff rate for Cambodia has since dropped to 36% and for Laos to 40%, per the new trade letters Trump sent.
Since the most recent letters came out, Brazil has the highest tariff rate, jumping from a 10% to a 50% tariff rate starting on Aug. 1. The high rate is partly in response to the prosecution of the country’s former president, Jair Bolsonaro, which Trump has called an “international disgrace.“
Biggest changes
Aside from Brazil, which saw the biggest change in its tariff rate, a few other countries saw higher rates after Trump’s round of letters.
The Philippines saw its rate increase from 17% to 20% to take effect on Aug. 1. Japan, Brunei, and Malaysia initially faced a 24% “Liberation Day” rate, but each ticked up to 25%, according to Trump’s letters.
Most of the 21 countries with letters, however, either had a reduction in the threatened tariff rate or retained the same rate proposed in April. Sri Lanka saw a notable change. Its Liberation Day rate was 44%, but after a letter, Trump has now settled on 30% starting Aug. 1
What comes next
More letters could come in the coming days and weeks from the Trump administration. Three trade deals have been announced with the United Kingdom, China, and Vietnam, and the administration has been meeting with trade partners to negotiate more agreements.
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The closest deal appears to be with the European Union, which could maintain the 10% tariff rate on most European goods, but might not lessen the 25% rate on their cars or the 50% rate on their steel.