Increase in Tariff Rates for 70 Plus Countries: Trump Announces Ascension from 10% to 41%
The United States has announced a series of reciprocal tariffs on various countries, effective mostly around July 31 to August 12, 2025. The tariff rates, which range from 15% to 50% or more, have been adjusted for each country and product category.
The US tariffs, originally announced on April 2, 2025, with a 10% tariff increment across some countries, were delayed to late July or early August 2025 to allow for negotiation or adjustment periods. Some tariffs, such as those for Colombia and Chad, have been delayed further, while others, like those for the European Union, South Africa, South Korea, Sri Lanka, Switzerland, and Syria, are set to take effect on August 7, 2025.
The tariffs for the European Union are computed as a function of existing "Column 1 Duty Rates," leading to variable rates from 0% up to 200% on some product categories, depending on the prior Most-Favored-Nation (MFN) rates. On the other hand, countries such as Cuba, Costa Rica, Côte d’Ivoire, Equatorial Guinea, and the Democratic Republic of Congo have some product exceptions, while South Korea and Switzerland have new adjusted rates.
Notably, India is among the countries affected by these tariffs. The Indian government, which places the 'utmost importance on protecting and promoting the welfare of farmers, entrepreneurs, and MSMEs', has taken note of Trump's statement on bilateral trade and is studying its implications. The Indian government has asserted that it remains committed to negotiating a fair, balanced, and mutually beneficial bilateral trade agreement with the US. The Ministry of Commerce and Industry in India has stated it will take firm steps to secure the interests of farmers, entrepreneurs, and MSMEs.
Trump described India as a "friend" but criticized the country for having high tariffs and non-monetary trade barriers. However, the Indian government will take all steps necessary to secure its national interest, as has been the case with other trade agreements. India remains committed to negotiating a fair bilateral trade agreement with the US.
The tariff announcement comes two days before the August 1 deadline for reciprocal tariffs. The Indian government is engaged in negotiations on concluding a fair, balanced, and mutually beneficial bilateral trade agreement with the US. It is crucial to monitor these developments closely as they unfold.
[1] Source: Office of the United States Trade Representative (USTR) [2] Source: The Economic Times [3] Source: The Hindu BusinessLine [4] Source: Livemint
- The US tariffs, affecting India and several other countries, have sparked concern in the general-news sector, particularly regarding their potential impact on businesses such as farmers, entrepreneurs, and MSMEs.
- In the financial industry, investors are closely monitoring the ongoing negotiations between the Indian and US governments, as any agreement could significantly affect the economy and stocks of businesses involved in international trade.
- Political tension between the United States and India, arising from high tariffs and non-monetary trade barriers, could disrupt the health of the global economy, impacting various industry sectors and finance markets worldwide.
