President Donald Trump has officially unveiled a significant shift in his administration’s economic policy, formalizing a reciprocal tariffs strategy that will impose substantial levies on a multitude of nations. This decisive move marks a continuation of his commitment to leverage economic measures in an effort to rebalance what he perceives as unfavorable trade deficits with key U.S. trading partners.
Under the newly signed executive order, a considerable 10% tariff will be applied to most trading partners. However, a select few nations will be exempt from these new duties, primarily those with whom the United States has recently finalized or is currently negotiating bespoke trade agreements, highlighting a strategic approach to international commerce.
Throughout his career, Donald Trump has consistently advocated for and employed economic tariffs as a potent bargaining tool. This approach serves a dual purpose: acting as a robust negotiation tactic in international trade discussions and stimulating the domestic manufacturing industry. Since his return to the White House, the focus on redressing trade imbalances, which he often portrays as exploitation of the United States, has been a central theme of his economic agenda.
White House press secretary Karoline Leavitt confirmed to reporters prior to the executive order’s announcement that these comprehensive tariffs are designed to apply universally. The only exceptions are for those trading partners who have already successfully fashioned unique, “bespoke” deals directly with the president, underscoring the personalized nature of his trade negotiations.
A closer look at the executive order reveals that certain countries will face particularly steep levies. Syria, for instance, is set to encounter a 41% tariff, while Myanmar and Laos will see duties of 40%. Switzerland, a nation often associated with stable international relations, will also face a significant 39% tariff, demonstrating the broad reach of the new policy.
In a related development, President Trump announced earlier on Thursday a temporary 90-day pause on previously planned tariffs targeting Mexico. This moratorium is intended to facilitate the ongoing trade negotiations between the two nations, signaling a degree of flexibility within the broader framework of his tariff policy.
Meanwhile, recent days have also seen developments concerning Canada, where ongoing trade negotiations have been impacted by Ottawa’s decision to recognize a Palestinian state. As a result, Canada is now slated to see its tariff increase from 25% to 35%, illustrating the geopolitical influences on economic policy.
Furthermore, the formalized tariffs follow closely on the heels of previous impositions on Brazilian goods. These measures were enacted over Brazil’s prosecution of a key Trump ally, former far-right President Jair Bolsonaro, bringing the total tariff on Brazilian imports to 50%. This demonstrates the intertwining of foreign policy, political alliances, and economic measures under the current administration.
