Trump’s tariff package imposed varying rates depending on country and commodity: 35% for Canada, 50% for Brazil, 25% for India, 20% for Taiwan, and 39% for Switzerland. Mexico was granted a 90-day reprieve from a 30% tariff on most non-automotive and non-metal goods following a call between Trump and President Claudia Sheinbaum. U.S. officials warned, however, that goods failing to meet USMCA origin standards would remain subject to punitive levies.

Canada’s goods were targeted under new fentanyl-related trade penalties, with Trump accusing Ottawa of failing to cooperate on narcotics control. Prime Minister Mark Carney condemned the tariffs, saying they threatened Canadian jobs and exports.

Trump’s justification leaned on emergency powers under the 1977 International Emergency Economic Powers Act, declaring a trade emergency and invoking parallel action to fight fentanyl trafficking. A federal appeals court has questioned the legality of using such powers in economic policy.

Domestic Prices Climb, Global Markets React

The announcement sent shockwaves through financial markets. U.S. Commerce Department data showed consumer prices—especially for home goods, vehicles, and apparel—had already begun rising in June. Analysts linked the inflation uptick to earlier tariff rounds, with further increases expected as new duties take effect in seven days.

In response, leaders from Taiwan, Switzerland, and South Africa all expressed concerns. Taiwan called the 20% levy temporary and said it expected further negotiation. South Africa’s Trade Minister Parks Tau warned that the 30% tariff would harm local jobs and demanded “practical interventions.”

Meanwhile, India pushed back against Washington’s trade demands, especially regarding its agriculture sector and purchases of Russian oil. Trump hinted at future penalties, prompting rupee depreciation and strong opposition reactions in New Delhi.

Although China was not among those hit immediately, the country faces an August 12 deadline to finalize a trade truce with Washington after partial agreements reached earlier in the summer.