Key takeout
- The Trump administration implemented mutual tariffs at different rates across countries, affecting trade with key partners.
- The new 40% transportation duties and the suspension of tax-exempt minimum imports is part of the policy escalation.
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President Donald Trump announced late Wednesday that mutual tariffs on foreign countries would come into effect in the middle of the night.
Trump argued that trade measures would guide billions of revenues towards the US economy. He believes these funds have been lost to countries that have previously “used” America for many years.
“The only thing that can stop American greatness is the radical left court that wants to see our country fail!” Trump wrote about the true society.
According to the latest information from Gibson Dunn, tariffs include country-specific fees ranging from 10% to 41%, with notable fees including 25% in India, 19% in Indonesia and the Philippines and 15% in Japan and South Korea.
The European Union has secured a two-tier structure with zero tariffs on goods that are already facing more than 15% obligations.
Trump is imposing sudden tariffs on Indian goods as India continues to purchase Russian oil. On Wednesday, he issued an executive order adding 25% tariffs on imports from India, plus the existing 25% tariffs, bringing the total tariff rate on many Indian goods to 50%. This hike is one of the highest fees the US has charged on its trading partners.
Tariffs raise legal challenges in US courts, with plaintiffs claiming the president lacking the power to impose obligations in emergencies. The lower court initially blocked the action, but a pending appeal has made the appeal effective.
The administration argues that tariffs will redirect trade flows, address deficits and generate around 5% of federal revenue. However, economists warn that the measures could slow GDP growth.
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