Trade showdown: Trump’s tariffs shake up global economy: New import taxes threaten long-standing U.S. alliances and trade stability

• President Donald Trump signed an executive order imposing new tariffs on numerous United States trading partners, effective August 7.
• The executive order specifies tariff rates for 68 countries and the European Union, with some countries experiencing reduced tariffs while others face new import taxes.
• The baseline tariff rate of 10% will apply to countries not specifically listed, as the administration seeks to harmonize the tariff rates schedule.

The executive order was formally issued shortly after 7 p.m. on Thursday evening. This significant action took place in the wake of a series of tariff-related developments that transpired in recent days.







President Trump signed an executive order on Thursday, setting new tariffs on numerous U.S. trading partners, scheduled to take effect on Aug. 7, following a week of intense trade negotiations and agreements, with rates based on trade imbalances and regional economic profiles, poised to test the global economy and the stability of long-standing American alliances. The order specifies tariff rates for 68 countries and the European Union, with some countries seeing reduced tariffs compared to initial threats, while others face new import taxes, with a baseline 10% rate for countries not specifically listed, as the administration aims to harmonize the rates schedule.


The executive order was issued shortly after 7 p.m. on Thursday. This action followed a flurry of tariff-related activity in recent days.

The White House announced agreements with various nations and blocs ahead of the president’s self-imposed Friday deadline.

According to a senior administration official, the tariffs are being implemented at a later date in order for the rates schedule to be harmonized. The official spoke on the condition of anonymity.

Initially, Lesotho faced a potential 50% tariff, but the final rate was set at 15%. Taiwan will have tariffs set at 20%, Pakistan at 19% and Israel, Iceland, Norway, Fiji, Ghana, Guyana and Ecuador among the countries with imported goods taxed at 15%.

Switzerland would be tariffed at 39%.

While Trump initially announced a 50% tariff on goods from Brazil, the order specified only 10%. The other 40% were part of a separate measure approved by Trump on Wednesday.

The order finalized a busy Thursday, as nations sought to continue negotiating with the Trump administration. It established rates for 68 countries and the 27-member European Union.

A baseline 10% rate will be charged on countries not listed in the order.

The senior administration official said the rates were based on trade imbalance with the U.S. and regional economic profiles.

Earlier on Thursday, Trump spoke with Mexican President Claudia Sheinbaum about trade. As a result of the conversation, the U.S. president said he would enter into a 90-day negotiating period with Mexico, one of the nation’s largest trading partners.

The current 25% tariff rates are staying in place, down from the 30% he had threatened earlier.

Sheinbaum shared her perspective on the conversation via X.

“We avoided the tariff increase announced for tomorrow and we got 90 days to build a long-term agreement through dialogue,” Sheinbaum wrote on X after a call with Trump that he referred to as “very successful” in terms of the leaders getting to know each other better.

The situation created a sense of uncertainty that has characterized Trump’s rollout of tariffs over several months.

The one constant, however, is his desire to impose import taxes.

Most economists suggest that these taxes will ultimately be borne, to some extent, by U.S. consumers and businesses.