Trump’s Reciprocal Tariffs Take Effect

US President Donald Trump's reciprocal tariffs have officially gone into effect, with over 90 countries being hit with the taxes at midnight last night.

After several rounds of changes, most of the tariffs have now been finalized, and they are sure to bring a serious impact to the economies of the US and other countries. Most of the country's largest trading partners have been hit with tariffs higher than the baseline rate of 10%, including its bordering nations of Canada and Mexico.

The baseline tariff rate has been established at 10%, but any country that faces an updated rate is being hit with a tax of 15% or higher on all goods. Several major deals have been made, though, saving multiple countries from massive tariffs that would have been a huge detriment to their economies.

After pledging to invest hundreds of billions of dollars into the US economy, the European Union has seen their tariff lowered to 15%, which was previously at 30%. South Korea and Japan made similar investment deals and saw their tariffs lowered to the same rate, while the Philippines and Indonesia are also seeing lowered rates. Read more into Trump's recent deals and tariff adjustments here.

Meanwhile, other countries are seeing skyrocketing tariff numbers with the potential for further increases. Brazil is seeing a 50% tariff on various goods due to Trump's disagreement with their decision to indict former President Jair Bolsonaro, who was accused of starting a coup. Switzerland is seeing a staggering 39% tariff on all goods, while other countries like Syria, Iraq, Serbia, and Myanmar are seeing rates of 35% or higher.

Canada, China, and Mexico, the United States' three largest trading partners, are also facing high tariffs. Trump has imposed a 35% tariff on all Canadian goods after claiming that they have failed to bring down the flow of illegal drugs like fentanyl into the United States, and Canadian Prime Minister Mark Carney has refused to agree with Trump's ideology and make a deal like other countries have.

Mexico, on the other hand, is still in talks with the Trump administration over an agreement to bring down their tariff, but their taxes have been paused in the meantime. China currently has a deal keeping tariffs down to 30% after their intense trade war earlier this year, but that agreement expires on Tuesday, forcing the two countries to re-enter negotiations soon.

Lastly, India now faces the prospect of a staggering 50% tariff on all products after they refused to stop buying Russian oil and military products. India and Russia have sustained good relations in the past, but India has always worked to maintain a neutral status on the world stage-- neither leaning towards the US or Russia.

Now, Trump is attempting to force them to move away from Russian oil, but Indian Prime Minister Narendra Modi has strongly rejected that idea. In retaliation, Trump confirmed that he has signed an executive order to raise tariffs on India from 25% to 50% within three weeks. Meanwhile, India called the tariff hike "unfair, unjustified, and unreasonable," and will continue to "ensure the energy security of 1.4 billion people of India."

Of course, there are still exceptions to the tariffs. Steel, aluminum, and copper face a substantial 50% tariff from any country, and all automobiles and automobile parts are already seeing a 25% tariff. Additionally, Trump confirmed that he will impose a 100% tariff on semiconductors in the near future, and he has other plans to ramp up tariffs on other sectors.

All of these levies are part of Trump's plan to shift manufacturing back to the United States and grow the economy, but experts are pointing out that they are currently pushing the market towards a slowdown. Trump claims that costs have come down since he came into office, but consumers are already starting to see the tariffs drive prices of everyday items up. Meanwhile, the July jobs report was one of the weakest the country has seen in recent years; though Trump fired the head of the Bureau of Labor Statistics shortly after claiming that the report was "rigged."

It is still unknown whether the tariffs will be a benefit or a detriment to the United States economy in the future, but an impact is already being made on global markets. Now, the world will have to wait and see how economies are affected by these major changes.

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In a Sentence: The community has benefited greatly from the largesse of its wealthiest family.