Trump's New Tariff Regime Locks in 35% on Canada 50% on Brazil 25% on India 39% on Switzerland

U.S. Trade Representative Jamieson Greer confirmed on August 3, 2025, that new tariffs imposed on Canada, Brazil, India, and Switzerland would remain fixed during ongoing negotiations, signaling a definitive shift in U.S. trade strategy [1]. These tariffs—35%, 50%, 25%, and 39%, respectively—are part of an executive order signed by President Donald Trump on August 1 aimed at correcting trade imbalances and enforcing reciprocal trade policies [2]. The decision aligns with a broader push for what Greer described as “fair and balanced trade,” prioritizing U.S. economic and national security [3].

The tariffs apply to a wide range of goods, including manufactured products and raw materials, and are among the highest rates imposed under the Trump administration [4]. Canada’s 35% tariff was raised from the previous 25%, and it took immediate effect under a separate directive targeting illicit drug trafficking. For Brazil, India, and Switzerland, the new tariffs will apply to goods shipped after August 7 and arriving before October 5 [5]. India, in particular, was granted a brief window—until August 14—to adjust to the 25% rate, as it explores potential diplomatic negotiations [6].

The implementation has already created market turbulence, with global stock indices falling in the wake of the announcement. Investors are wary of the escalating trade tensions and the possibility of retaliatory measures from affected countries [7]. In Switzerland, manufacturers have expressed concern that the 39% tariff could threaten tens of thousands of jobs. Canada, a key U.S. ally, has also raised concerns, with analysts suggesting the increased rate could be a strategic move to influence broader diplomatic engagements [8].

The U.S. executive order also confirmed existing tariff rates for several other trade partners. The European Union, South Korea, and Japan will remain at 15%, while Southeast Asian countries face rates between 19% and 20%. The United Kingdom retains a 10% rate, and new tariffs on Mexico were postponed for 90 days following a “very successful” phone call between Trump and Mexican officials [9]. Analysts have highlighted that while the tariffs aim to reduce trade deficits and bolster domestic manufacturing, they also carry risks of trade wars and supply chain disruptions [10].

As the U.S. finalizes its new tariff framework, the broader economic implications remain uncertain. The responses from impacted countries and any potential diplomatic or economic adjustments will be crucial in determining the long-term effects of the policy shift [1].

Sources:

[1] The Guardian – https://www.theguardian.com/us-news/2025/aug/01/full-list-tariffs-country-rate-donald-trump-executive-order

[2] Yahoo Finance – https://finance.yahoo.com/news/trump-hits-more-countries-with-steep-tariffs-markets-tumble

[3] Yahoo Finance – https://finance.yahoo.com/news/trump-hikes-tariffs-on-canada-to-35-announces-rates-from-10-to-40-for-dozens-of-countries-000338109.html

[5] NDTV – https://www.ndtv.com/world-news/us-donald-trump-tariffs-live-updates-25-percent-india-50-brazil-pakistan-syria-new-duties-deadline-shifted-august-7-8996953

[6] KSL.com – https://www.ksl.com/article/51354672/trump-hits-more-countries-with-steep-tariffs-markets-tumble

[7] Yahoo Finance – https://finance.yahoo.com/news/live/trump-tariffs-live-updates-buffetts-berkshire-portfolio-takes-tariffs-hit-trump-outlines-sweeping-new-tariffs-for-dozens-of-trade-partners-200619859.html

[8] Fortune – https://fortune.com/2025/08/03/trump-tariffs-winners-losers-liberation-day-brazil-india-canada-mexico/