New Tariff Rates to Take Effect Aug. 7, With In-Transit Exception
The White House is leaving most countries that buy more U.S. exports than they sell to the U.S. at a 10% tariff, and is increasing tariffs from 10% to somewhere between 15% and 41% for countries that have trade deficits with the U.S., with a notable exception -- Nicaragua, which will remain at 10%.
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The changes to current 10% emergency tariff rates will take effect in seven days, though goods that are loaded onto a vessel at the port of loading and in transit on the final mode of transit before 12:01 a.m. EDT on Aug. 7 won't face the higher tariffs if they arrive before Oct. 5.
The Falkland Islands, the U.K., Colombia, Peru, Chile, Australia, Guatemala, El Salvador, Jamaica, Haiti, Kenya and Ethiopia are among those that remain at 10%.
The executive order said some trading partners "have agreed to, or are on the verge of agreeing to, meaningful trade and security commitments with the United States," others "despite having engaged in negotiations, have offered terms that, in my judgment, do not sufficiently address imbalances in our trading relationship or have failed to align sufficiently with the United States on economic and national-security matters," and some did not negotiate at all.
The order said that some countries will face higher tariffs until they conclude agreements, and the president issues orders memorializing those terms.
The EU got a more generous deal than did Japan, as Japanese goods will have the most favored nation duty plus 15%, and the EU will have either the MFN rate and a percentage that adds up to 15%, or in the case of goods whose MFN duty is above 15%, the original MFN will apply.
South Korea, which also has a 15% rate, didn't get the EU deal, either. However, the U.S. already had zeroed out many tariffs for that country under the terms of its 2012 free-trade agreement.
While many countries received somewhat lower rates than announced in April, Switzerland was given a 39% rate, rather than the 31% rate announced in April.
The order said that any good that CBP determines is transshipped will be subject to a 40% tariff rate on top of MFN.
Any country that is not in the list below will receive a 10% rate. The technical language with the new tariff numbers is here.
- Afghanistan 15%
- Algeria 30%
- Angola 15%
- Bangladesh 20%
- Bolivia 15%
- Bosnia and Herzegovina 30%
- Botswana 15%
- Brazil 10% (a separate order imposes an additional 40%)
- Brunei 25%
- Cambodia 19%
- Cameroon 15%
- Chad 15%
- Costa Rica 15%
- Cote d`Ivoire 15%
- Democratic Republic of the Congo 15%
- Ecuador 15%
- Equatorial Guinea 15% liber
- EU goods with a Column 1 duty rate greater than 15% will face a 0% rate
- EU goods with Column 1 duty rate less than 15% will face a 15% rate minus the Column 1 duty rate
- Falkland Islands 10%
- Fiji 15%
- Ghana 15%
- Guyana 15%
- Iceland 15%
- India 25%
- Indonesia 19%
- Iraq 35%
- Israel 15%
- Japan 15%
- Jordan 15%
- Kazakhstan 25%
- Laos 40%
- Lesotho 15%
- Libya 30%
- Liechtenstein 15%
- Madagascar 15%
- Malawi 15%
- Malaysia 19%
- Mauritius 15%
- Moldova 25%
- Mozambique 15%
- Myanmar (Burma) 40%
- Namibia 15%
- Nauru 15%
- New Zealand 15%
- Nicaragua 18%
- Nigeria 15%
- North Macedonia 15%
- Norway 15%
- Pakistan 19%
- Papua New Guinea 15%
- Philippines 19%
- Serbia 35%
- South Africa 30%
- South Korea 15%
- Sri Lanka 20%
- Switzerland 39%
- Syria 41%
- Taiwan 20%
- Thailand 19%
- Trinidad and Tobago 15%
- Tunisia 25%
- Turkey 15%
- Uganda 15%
- United Kingdom 10%
- Vanuatu 15%
- Venezuela 15%
- Vietnam 20%
- Zambia 15%
- Zimbabwe 15%