Trump's tariffs against dozens of countries come into effect

The tariffs announced by US President Donald Trump for dozens of countries with the aim of establishing his new world trade order, in which customs surcharges are used as a weapon of economic policy, came into effect this Thursday 7.

The Republican president's announced goal is to restructure trade "for the benefit of American workers."

“IT’S MIDNIGHT!!! BILLIONS OF DOLLARS IN TARIFF ARE NOW FLOWING INTO THE UNITED STATES OF AMERICA!” Trump wrote on his Truth Social platform.

Washington maintains the universal minimum tariff of 10% imposed in April on countries to which the United States exports more than it imports, that is, those with which it has a trade surplus.

Between 15% and 41%

For countries with which Washington has a trade deficit, higher tariffs, ranging from 15% to 41% , came into effect on Thursday.

Most will pay 15%, such as the European Union, Japan, South Korea, among others.

India will be the most affected, with 50%, adding the 25% that came into effect this Thursday and the 25% that will be applied within three weeks due to the “continued purchase of Russian oil”.

Brazil deserves special mention. Despite the United States' trade surplus with the country, several Brazilian products, including coffee and meat, have faced an additional 50% tariff since Wednesday, partly in protest of the trial of an alleged coup attempt against former President Jair Bolsonaro, whom Trump considers the victim of a "witch hunt."

Mexico gained time with a 90-day extension to negotiate an agreement and, in the meantime, pays 25%, except for products protected by the North American Free Trade Agreement (T-MEC), which it integrates with the United States and Canada.

The agreement also protects many products from Canada, which was hit a few days ago with an additional 35% tariff.

The new customs tariffs reach 41% in Syria's case. Switzerland is close behind, at 39%, and tried until the last minute to reduce the percentage, but was unsuccessful.

In his Truth Social platform, the Republican president insists that tariffs will make the United States “GREAT AND RICH again.”

He writes in capital letters, but although they will certainly increase the state's coffers, it is still too early to determine their impact.

A Morning Consult/The Century Foundation poll released July 31 showed that 83 percent of Americans are concerned about food prices .

Many economists argue that American consumers end up paying more because companies, faced with rising costs, raise the prices of their products.

Trump is considering mitigating the situation with a promise that raises even more doubts. "So much money is coming in that we're considering a small refund to Americans," he said in July, without specifying how the measure would be financed.

“The most important thing is to pay off the debt,” which at the beginning of August exceeded 36.8 trillion dollars, he commented, however.

The American president is betting on protectionism to reindustrialize the United States and wants companies to produce in the country.

Semiconductors

On Wednesday, Trump announced that he intends to impose 100% tariffs on "chips and semiconductors," but if the company "manufactures in the United States, there will be no additional taxes."

Pharmaceuticals are expected to be next on the list. "Initially, we're going to impose a small tariff on pharmaceuticals, but in a year, a year and a half at the most, it will increase to 150 percent and then to 250 percent because we want pharmaceuticals to be made in our country," Trump told CNBC this week .

Trump has already imposed specific tariffs on other sectors, such as 50% on steel, aluminum, and copper, and 25% on automobiles and auto parts that are not included in the T-MEC.

Trump's tariff offensive is staggered. The next important date is August 12, when a trade truce with China expires, under which the two countries reduced their respective tariffs to 10% on American goods and 30% on Chinese goods.

The two great powers are negotiating to extend the truce. The final decision lies with Trump.