President Donald Trump signed an executive order Thursday imposing new reciprocal tariffs of 10% to 41% on U.S. imports from dozens of countries. The measure aims to pressure foreign governments into fairer trade terms, marking one of the most significant shifts in U.S. trade policy this year.
According to the White House, tariffs were set at 25% for Indian exports to the U.S., 20% for Taiwan, and 30% for South Africa. Canadian goods will see an increase from 25% to 35%. These moves follow earlier agreements with the European Union, Japan, and South Korea, which helped soften the broader impact of Washington’s escalating trade measures. Mexico has been granted a 90-day reprieve, and negotiations with China are reportedly “doing reasonably well,” Trump said.
Market response to the announcement has been relatively muted. Tony Sycamore, market analyst at IG in Sydney, noted that investors now view tariff levels as potentially negotiable. “After being caught off guard earlier this year, markets seem to expect that these levels could be walked back over time,” he said.
Brian Jacobsen, chief economist at Annex Wealth Management, cautioned that while tariff clarity exists, uncertainty remains over their long-term effects. “Tariff-induced inflation may gradually rise as businesses adjust pricing, or it may peak earlier and squeeze profit margins,” he explained.
Analysts suggest the impact could vary depending on how global trade partners respond and whether the U.S. pairs tariffs with tax incentives or new trade deals. The decision underscores the Trump administration’s strategy of leveraging tariffs to secure better terms amid ongoing trade tensions.