Trump’s first tranche of tariffs comes into effect, hitting over 90 countries

India, as part of the first tranche, faces 25 per cent tariffs. However, this was doubled on Wednesday by the US President to 50 per cent, with the addition 25 per cent kicking in after a 21-day window.

A White House statement said the US will impose “additional 25 per cent ad valorem duty” above the 25 per cent reciprocal tariffs announced on August 1 to “deal with the national emergency stemming from Russia’s actions in Ukraine”. This tariff is deemed necessary and appropriate due to India’s “direct or indirect import of Russian Federation oil”, which the President judges will more effectively address the national emergency, the executive order said.

Before Thursday, goods into America saw a minimum 10 per cent tariff but now the rates vary for different countries. While the highest rates imposed are on goods from Brazil (50%), Laos (40%), Myanmar (40%), Switzerland (39%), Iraq (35%) and Serbia (35%), 21 countries face levies greater than 15% — Vietnam (20%), India (25%), Taiwan (20%) and Thailand (19%).

100% tariffs on semiconductors?

Trump also announced on Wednesday that the US will implement a roughly 100% tariff on imported semiconductors but noted a major exemption: the tariff will not apply to companies that are already manufacturing in the US or have pledged to do so. His announcement came alongside news that Apple would be making an additional $100 billion investment in its US operations.

“For companies like Apple, which have committed to build in the United States, there will be no charge,” Trump told reporters in the Oval Office. However, he cautioned that firms must follow through on their pledges to set up production in the US. “If, for some reason, you say you’re building and you don’t build, then we go back and we add it up, it accumulates, and we charge you at a later date, you have to pay, and that’s a guarantee,” he said, according to Reuters.

These comments did not constitute a formal tariff policy, and questions remain about how such measures would be enforced and how global businesses and nations will be affected.

Tariffs on other countries

Here are the present tariff rates at a glance, as reported by Reuters:

While some allies like the UK, Japan, and South Korea have negotiated lower tariffs, others, including Canada, saw rates rise. Canada’s tariff was increased from 25% to 35% after Trump accused it of failing to control fentanyl trafficking. However, most Canadian exports remain protected under the USMCA trade deal.

Tariffs on Mexican goods have been temporarily paused for 90 days as negotiations continue.

The European Union reached a framework deal with Washington, accepting a 15% tariff on EU goods in exchange for concessions, reported BBC.

(With inputs from BBC, Reuters, PTI)

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