**Trump Adjusts Tariffs for 68 Countries Including South Korea and the EU**
The U.S. will impose a 10% tariff on surplus countries and over 15% on deficit countries. China, Canada, and Mexico are subject to separate tariff executive orders. There is a one-week grace period for customs preparation, with full implementation starting on the 7th.
On July 31 (local time), President Donald Trump signed an executive order at the White House in Washington, D.C. This order adjusts previously announced reciprocal tariffs based on the results of trade negotiations with major countries, including South Korea. According to the annex of the order, the tariff rate for South Korea is reduced from 25% to 15%.
Back in April, President Trump announced reciprocal tariffs globally, declaring a national emergency due to trade deficits posing a significant threat to national security and the economy. Since then, the implementation of these tariffs has been delayed twice as negotiations continued with countries seeking reduced tariffs. The current executive order reflects these negotiation results and directs relevant departments to enact the tariff policy.
The executive order states that the adjusted tariffs will be applied starting August 7 at 12:01 AM, giving customs authorities time to prepare for the new tariff system. The White House explained that some countries either agreed to or are about to agree to meaningful trade and security agreements with the U.S.
Like South Korea, Japan and the European Union (EU), which have also concluded trade negotiations with the U.S., will be subject to a 15% tariff. Vietnam (20%), Indonesia (19%), and the Philippines (19%) have also had their tariffs adjusted according to agreements with the U.S.
Taiwan, which initially faced a high tariff rate of 32%, negotiated it down to 20%. Some countries did not achieve tariff reductions, as their conditions were deemed insufficient by President Trump to resolve the emergency situation; India, for instance, remained at 25%.
Brazil will face a total of 50% tariffs after a separate order added a 40% political tariff to the existing 10% reciprocal tariff. The White House noted that for countries avoiding tariffs through transshipment, an additional 40% penalty tariff will be applied.
A total of 69 economic entities, including 68 countries and the EU, have specified reciprocal tariffs listed in the annex. Countries with which the U.S. records a trade surplus face a 10% tariff, while those with deficits face at least 15%.
Three countries, including the UK, are subject to a 10% tariff, whereas 40 countries face 15%, and 26 countries face more than 15%. Countries not listed typically have minimal trade with the U.S. and are subject to a base 10% reciprocal tariff.
China, Canada, and Mexico are covered by different tariff executive orders and are excluded from this reciprocal tariff order.
The tariff on Canada was raised from 25% to 35% due to a lack of cooperation in curbing the influx of fentanyl and other illegal drugs into the U.S. However, items under the USMCA agreement are not included in the tariffs.
For Mexico, the existing 25% tariff will be maintained for the next 90 days. President Trump on social media announced that he had a successful phone call with Mexican President Claudia Sheinbaum and agreed to extend the existing tariff agreement by 90 days.
Previously, the Trump administration had imposed a 25% tariff on Canada and Mexico in February due to inadequate efforts in controlling fentanyl trafficking and illegal immigration. Mexico has agreed to dismantle many non-tariff trade barriers, leading to the 90-day extension of the existing tariffs.
Meanwhile, the U.S. and China reached a tentative agreement to extend their tariff war’s “truce” for another 90 days. Final agreements have been delayed pending President Trump’s approval following a briefing.
This meeting follows previous high-level trade negotiations in Geneva and London and is the third such negotiation during Trump’s second term. The two countries had previously reduced their tariffs, which exceeded 100%, by 115 percentage points each after their first negotiations.