Trump unveils new tariffs that go into effect in 7 days: What to know

WASHINGTON - President Donald Trump signed an executive order on Thursday that would have new tariffs on a number of U.S. trading partners. 

Dozens of countries across the globe will face higher tariffs on their exports to the U.S. starting on Aug. 7.

Trump signs order imposing new tariffs

What we know:

The order was issued shortly after 7 p.m. on Thursday evening. It came after a flurry of tariff-related activity in the last several days, as the White House announced agreements with various nations and blocs ahead of the president's self-imposed Friday deadline. 

It set the rates for 68 countries and the 27-member European Union, with a baseline 10% rate to be charged on countries not listed in the order. The senior administration official said the rates were based on trade imbalance with the U.S. and regional economic profiles.

According to The Associated Press, the tariffs are being implemented at a later date in order for the rates schedule to be harmonized, according to a senior administration official who spoke to reporters on a call on the condition of anonymity.

Leavitt said countries that have not received a prior letter on tariffs from Trump or negotiated a trade framework will be notified of their likely tariff rates, either in the form of a letter or Trump’s executive order.

For those countries without an agreement, they could face export taxes of as much as 50%, including on large economies in North America, South America and Asia. Smaller countries are also on track to pay more. 

Some of the United States’ biggest trading partners have reached agreements, but they’re still paying much higher tariffs than they were before Trump took office for a second term. 

Which countries have trade deals with the US?

Dig deeper:

In a flurry of last-minute deal-making, Trump has been announcing agreements as late as Thursday, but they are largely short on details.

Here’s which countries have made deals so far: 

• European Union
• United Kingdom
• Japan
• The Philippines
• Indonesia
• South Korea
• Pakistan

Trump raising tariffs on Canada

Trump signed an Executive Order late Thursday increasing the tariff on Canada from 25% to 35%, with the higher tariff set to go into effect on August 1, 2025.

"In response to Canada’s continued inaction and retaliation, President Trump has found it necessary to increase the tariff on Canada from 25% to 35% to effectively address the existing emergency," the White House wrote.

China, Mexico get deadline extensions 

Timeline:

The White House said this week that it has extended the deadline for trade deals with Mexico and China because of their complex trading relationships with the U.S. Mexico’s has been extended for 90 days, and China said their deadline has been extended by 90 days as well, though the U.S. said that hasn’t been decided. 

Both countries will likely end up paying more. 

Why is Trump imposing tariffs? 

What they're saying:

Trump has said the increased tariffs will bring back manufacturing to the United States, while also forcing other countries to reduce their trade barriers to U.S. exports. 

The other side:

Trump argues that foreign exporters will pay the cost of the tariffs, but so far economists have found that most are being paid by U.S. companies. And measures of U.S. inflation have started to tick higher as prices of imported goods, such as furniture, appliances, and toys rise.

The backstory:

The trade deals and higher tariffs stem from Trump’s April 2 "Liberation Day" announcement that the United States would impose import taxes of up to 50% on nearly 60 countries and economies. Those duties, originally scheduled for April 9, were then postponed twice, first to July 9 and then Aug. 1.

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