INTERNATIONAL: Trump’s Tariff Surge: 70 Nations Hit, Pakistan Gains Relief
Sweeping Tariff Hikes
US President Donald Trump signed executive orders on July 31, 2025, imposing reciprocal tariffs ranging from 10% to 41% on imports from over 70 countries. Syria faces the highest tariff at 41%, reflecting the US’s tough stance on certain trade partners.
These measures, effective August 7, 2025, aim to address trade imbalances, with a baseline 10% tariff applied to countries not listed in the order.
India and Canada Targeted
India faces a 25% tariff on its exports to the US, effective immediately from August 1, 2025, alongside an unspecified penalty for its energy and defense ties with Russia.
Canada’s tariff has been raised from 25% to 35%, also effective August 1, due to issues like fentanyl trafficking and trade disputes.
The immediate enforcement for these nations contrasts with the seven-day grace period for others, signaling strategic priorities.
Pakistan’s Tariff Reduction
Pakistan’s tariff rate has been lowered from 29% to 19%, following a trade deal announced on July 31, 2025, aimed at boosting bilateral economic ties. The agreement focuses on energy, minerals, and IT sectors, with Pakistan’s Finance Minister Muhammad Aurangzeb highlighting its potential for investment.
Trump also claimed the deal involves developing Pakistan’s oil reserves, though experts note Pakistan’s limited proven reserves.
Brazil Faces Steep Increase
Brazil’s imports now face a 50% tariff, up from 10%, linked to Trump’s criticism of the prosecution of former President Jair Bolsonaro. This steep hike, announced on July 10, 2025, reflects both trade and political tensions.
The US trade surplus with Brazil did not shield it from the punitive measure, unlike other nations with negotiated deals.
Trade Deadline and Exemptions
Trump’s August 1 deadline for trade negotiations prompted these revised tariffs, with most rates effective August 7, 2025. Goods loaded onto ships by August 7 and arriving by October 5 are exempt, except for Canada’s 35% tariff.
Exclusions apply to steel, aluminum, automobiles, semiconductors, and pharmaceuticals under existing Section 232 tariffs or Annex II exemptions.
Global and Domestic Reactions
India’s Commerce Minister Piyush Goyal announced ongoing talks to mitigate the tariff’s impact, with a sixth round of negotiations planned for August 2025. Domestically, Congress leader Rahul Gandhi criticized India’s economic policies, while the BJP defended national progress.
Globally, leaders like the EU’s Ursula von der Leyen warned of economic fallout, predicting increased protectionism and market uncertainty.