President Donald Trump has intensified his trade policy, threatening significant tariffs on over 20 countries to address a $1 trillion U.S. trade deficit and bolster domestic manufacturing. Trump recently announced via Truth Social that letters were sent to leaders, such as the European Union’s Ursula von der Leyen and Mexico’s President Claudia Sheinbaum, stating that 30% tariffs would be imposed unless trade deals are secured, effective August 1, 2025.
Other tariffs currently on the table include: 35% tariffs on Canada (escalating from a prior 25% on non-USMCA goods), 25% tariffs on Japan and South Korea, and 50% on Brazil, 50% tariffs on copper imports and 200% on foreign pharmaceuticals, 145% tariffs on Chinese goods (with some reductions after May 2025 talks). Other nations such as Iraq, Libya (30%), and Bangladesh (35%) face similar threats, with rates varying from April’s “reciprocal” tariffs.
These tariffs, enacted under the International Emergency Economic Powers Act (IEEPA), face legal challenges, with the U.S. Court of International Trade ruling them illegal in May 2025. Trump claims they address non-reciprocal trade practices, like foreign value-added taxes and currency manipulation, but critics argue they could raise consumer costs by $1,200-$1,442 per household annually and trigger a global recession. Retaliatory tariffs from China, Canada, and the EU, affecting $330 billion in U.S. exports, further complicate the outlook.
Trump’s April tariffs, with a 10% baseline on all imports (higher for some nations), was paused for 90 days until July 9th, now extended to August 1st, yielded only limited success. The UK lowered tariffs on cars, steel, aluminum, and aerospace equipment. A “loose” agreement with Vietnam reduced tariffs from 46% to 20%, and a there’s a promising pending deal with India .
Despite Trump’s claim of “90 deals in 90 days,” only these three materialized. While these deals show some progress, many nations remain skeptical of Trump’s shifting deadlines, which could lead to further delays.