Late on August 7, 2025, the U.S. activated a new round of sweeping “reciprocal” tariffs that span dozens of countries, marking the highest overall import duties in nearly a century. The tariffs, ranging from 10% to as much as 50%, began taking effect just after midnight, as customs officials began collecting the elevated levies. The goal: dramatically reduce the U.S. trade deficit and reclaim manufacturing dominance.
Top trading partners bore the brunt of the increases—Brazil saw a 50% tariff, Switzerland 39%, Canada 35%, and India 25%, with an additional 25% on top for oil-related imports from India. At the same time, eight major economies—including the EU, Japan, and South Korea—secured deals to lower their base rates to around 15%, with the UK achieving a 10% rate, and several Southeast Asian nations landing reductions to 19–20%.
The immediate fallout was high stress and urgency, as more than 60 governments and exporters scrambled to cushion industries from the sudden shock. Many nations warned of looming job losses and mounting risks, with some leaders denouncing the tariffs as destabilizing and economically coercive. Businesses and consumers alike are bracing for price hikes as the full economic impact gradually unfolds.
