President Trump introduces comprehensive tariffs under a novel trade regime
President Trump Announces Wide-Ranging Tariffs in August 2020
In a significant move, President Donald Trump signed an executive order in August 2020, imposing new tariffs on goods imported into the United States. This decision marks a significant escalation in US tariff policy, broadening the scope of taxable imports and affecting about 40 countries.
The new tariff rates will range from 10% to 41%, with some countries facing higher rates due to the US trade deficit. For instance, goods from Brazil will be subject to a 50% tariff, as the country already faced a 10% baseline tariff and Trump announced a 40% additional tariff.
However, goods shipped into the US by vessel, if shipped by August 7 and entered by October 5, will not be subject to the new tariff rates. The tariffs are set to go into effect next week, not on Friday as was initially anticipated.
The tariffs are part of a broader strategy under Trump’s second term to impose tariffs across a wide range of countries and sectors. Sector-specific tariffs remain on goods like steel, aluminum, autos, copper, and various agricultural products. Further tariffs were announced around the August 1, 2025 deadline to take effect August 7, 2025.
Legally, Trump invoked powers under the National Emergencies Act and International Emergency Economic Powers Act, declaring multiple "national emergencies" to bypass usual Congressional tariff levying restrictions and procedures. This approach, unprecedented for tariffs, has faced criticism from economists and legal experts for potentially violating congressional authority and international trade rules.
The practical implications include heightened trade tensions worldwide, expanded tariff coverage on imports to the US, and potential retaliatory tariffs affecting US exports. The broad application of tariffs risks increasing costs for US consumers and businesses relying on imports, disrupting supply chains, and complicating international trade relations.
Congressional attempts to repeal these national emergencies that underpin the tariffs were blocked by the Republican majority, allowing these tariffs to remain in force. Countries not listed in the executive order will face a 10% tariff. Laos, Myanmar, and Syria face the highest tariff rates at 40% and 41%.
The White House has stated that the goal is to cut the best deals for the American people and the American worker. The president has insisted that the tariffs are a key part of his negotiation strategy, forming a "new system of trade" that aims to prioritize "fair and balanced trade" over efficiency at all costs.
References: 1. CNN 2. The Washington Post 3. The New York Times
- The new tariffs, announced by President Trump in August 2020, are a significant move in US trade policy, affecting business and economy by broadening the scope of taxable imports from about 40 countries.
- The tariff rates, ranging from 10% to 41%, could potentially increase costs for US consumers and businesses relying on imports, as well as disrupt supply chains and complicate international trade relations.
- The tariffs could lead to heightened politics around international trade, with potential retaliatory tariffs affecting US exports and increasing trade tensions worldwide.
- The White House justifies the tariffs as part of a larger strategy to negotiate better trade deals, with the goal of prioritizing "fair and balanced trade" over efficiency at all costs, according to President Trump.
