Trump’s sweeping tariffs take effect in another dramatic reshaping of the US trade landscape
Written by Black Hot Fire Network on August 7, 2025
New sweeping “reciprocal” tariffs are now in force as the White House implemented a recent executive action that will see importers paying between 10% and 50% in the coming months as they bring in a variety of goods to the US from around the globe.
Trump took to social media at the overnight deadline to tout “IT’S MIDNIGHT!!! BILLIONS OF DOLLARS IN TARIFFS ARE NOW FLOWING INTO THE UNITED STATES OF AMERICA!” .
Dozens of countries — including top trading partners like the European Union, South Korea, and Japan — now face a key new rate of 15%.
Others are facing “bespoke” rates. Those at the higher end of the spectrum have found themselves at odds with President Trump.
The latest complete tally, according to recent calculations from the Yale Budget Lab, is that the US overall average effective tariff rate will jump to 18.3% as these “reciprocal” tariffs take effect.
Read more: What Trump’s tariffs mean for the economy and your wallet
It’s yet another uptick from Trump in his trade wars, with plenty more promised in the weeks ahead.
Trump even suggested late Wednesday afternoon he is looking to impose a tariff of approximately 100% on “all chips and semiconductors coming into the United States” but with an escape hatch for companies who offer even “a commitment to build inside the United States.”
Trump’s focus on tariffs hasn’t slowed even after months of fears that these new duties will spur at least temporary inflation.
The many moves have pushed the Federal Reserve to hold interest rates steady — much to Trump’s unhappiness — with Chair Jerome Powell recently noting “higher tariffs have begun to show through more clearly to prices of some goods.”
But rates continue to rise, with countries now facing higher tariffs, including Brazil, which saw 50% duties go into effect Wednesday, and India, which now faces 25% duties but could see rates double in about three weeks’ time over its consumption of Russian oil.
Goods from almost two dozen nations, from Bangladesh to South Africa, now face higher rates, with shippers there now set to pay 20% or higher.
Meanwhile, a major surprise in recent days has been Switzerland, which now faces 39% duties. That’s after a last-minute trip from the Swiss president, which appears not to have borne immediate fruit in getting an exemption for her country.
Canada, Mexico, and China are not seeing their rates change this week as all three nations already face headline tariffs of 25% or higher — and all are on different negotiating schedules.
