US President Donald Trump has announced reciprocal tariffs on countries as the August 1 deadline came to an end. The administration has stuck to the 25% tariff on India. However, the “additional penalties”, which Trump had threatened to impose on India for doing business with Russia, remains unclear.
Pakistan, which announced a deal with the US on Thursday, has received a 19% tariff rate, while Bangladesh’s rate, which earlier stood at 35%, has been brought down to 20%. Pakistan was earlier hit with a 29% reciprocal tariff in April.
“These modifications shall be effective with respect to goods entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. eastern daylight time 7 days after the date of this order,” the White House statement said.
This means that the tariffs will take effect on August 7. White House officials told CNBC-TV18 exclusively that this should not be treated as an extension but just more time for the customs department to prepare their systems accordingly to collect the new tariffs.
In an interaction with CNBC on Thursday, US Treasury Secretary Scott Bessent said that the entire trade team is frustrated with India, as it has not been a great global actor due to its dealings with China.
The US has also decided to impose a 20% tariff on Taiwan, 19% each on Cambodia and Thailand, a 30% tariff on South Africa, and a 15% tariff on Turkey. The Trump administration has also imposed a 15% tariff on Israel and South Korea, along with a 39% tariff on Switzerland, which has triggered a fall in the Swiss Franc against the US Dollar.
Canada’s tariffs have also been raised to 35% from 25% earlier, after the country decided to recognise Palestine as an independent state. However, the goods compliant under the US-Mexico-Canada agreement have been exempt.
