Key facts
- President Trump is preparing to impose new tariffs on dozens of countries.
- The existing 10% global tariff is set to expire.
- New tariffs are expected to be around 10%, with potential for higher rates.
- Canada will face 35% tariffs on goods not covered by USMCA.
- An additional 40% tariff will be applied to goods transshipped to evade tariffs.
President Donald Trump is preparing to implement new tariffs on dozens of countries as an existing 10% global tariff is set to expire. The Financial Times reported that the new duties are expected to be around 10%, with the administration also working on investigations that could lead to higher rates.
According to an executive order, countries not listed will face an additional 10% tariff within seven days. Goods from Canada not covered by the USMCA agreement will be subject to 35% tariffs, with the administration citing concerns over illicit drug trafficking. China will remain under a prior tariff order for the time being, while new tariff rates on goods from Mexico are on pause due to ongoing negotiations.
Furthermore, an additional 40% tariff will be imposed for transshipment, where countries send goods through other nations to evade existing tariffs. Despite Trump's framing of tariffs as being paid by other countries, importers in the U.S. pay them directly, which historically has led to higher prices for U.S. businesses and consumers.