President Donald Trump on Thursday signed a wide-ranging executive order that formalizes reciprocal tariffs on dozens of countries, including the European Union, Japan, South Korea, and other major U.S. trading partners. The tariffs, part of Trump’s aggressive “America First” trade agenda, will go into effect on August 7.
The action comes just hours before an August 1 deadline Trump had set for nations to strike fair trade agreements with the United States — or face automatic penalties.
Tariff Structure: Surplus vs. Deficit
The order outlines a tiered tariff system based on each country’s trade balance with the United States:
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10% tariff on countries where the U.S. has a trade surplus
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15% tariff on countries where the U.S. runs a trade deficit
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Higher rates (up to 41%) for countries that have failed to reach agreements or refused to negotiate
Major U.S. Trade Partners Affected
Country/Region Tariff Rate SHARE THIS: Subscribe to Our Free Newsletter
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