FAQ

The new US tariffs on imports from abroad were supposed to take effect today. However, the start date has been postponed by a few days. Most of the tariffs will now take effect on August 7th – how hard they will hit each country will be.

US President Donald Trump spoke of a"great day for America": The new customs regime was supposed to take effect this Friday, August 1. However, the US government announced that it would now only take effect on August 7. The White House justified the postponement by saying that it would give border and customs authorities more time to implement the new system.

In total, the list published yesterday evening includes tariff rates for almost 70 countries – including the European Union (EU), Japan, and other important trading partners of the United States. They range from ten to 50 percent. An overview.

European Union

Tariffs of 15 percent on most EU products, including cars: This is the agreement reached by Trump and EU Commission President Ursula von der Leyen. According to Trump, the Europeans should also purchase US energy for $750 billion and invest $600 billion in the US. Chancellor Friedrich Merz (CDU) fears"significant damage" to the German economy, and there is also a risk of jobs moving to the US. A government official confirmed to news agencies that the postponement of the start also applies to the 15 percent tariff on imports from the EU.

German foreign traders are criticizing the back and forth surrounding the introduction of the planned new US tariffs."For us traders, the uncertainty is now worse than the tariffs themselves," said Dirk Jandura, President of the Federal Association of Wholesale, Foreign Trade, and Services (BGA)."Agreements have a half-life of less than a week: When you go to sleep at night, you don't know what tariffs you'll wake up with in the morning." This is poison for exports.

Japan and South Korea

The two countries have concluded agreements similar to those of the EU to avoid even higher tariffs: a 15 percent tariff is levied on most products shipped to the US. According to Trump, Japan also wants to open its market duty-free to US cars, trucks, and rice and has pledged $550 billion in investments in the US. South Korea has pledged $350 billion in investments and plans to purchase $100 billion of US liquefied natural gas.

Switzerland

Switzerland is among the countries hit hardest, with a current figure of 39 percent. The original target was 31 percent. Switzerland remains hopeful for a negotiated solution. The government received Trump's announcement"with great regret," a Treasury Department spokesperson said. The 39 percent deviates"significantly" from the draft joint memorandum of understanding.

The business association Economiesuisse spoke of unjustified tariffs that are"a very serious burden on the Swiss economy." Switzerland is the sixth-largest foreign investor in the USA, and Swiss companies have created around 400,000 jobs there. The USA is by far the largest sales market for Swiss companies. Exports last year amounted to 65.3 billion Swiss francs, almost 17 percent of total exports.

Brazil

Trump has announced the highest tariff surcharge against Brazil: 50 percent. While the current tariff schedule specifies 10 percent, Trump announced that 40 percent will be added to Brazilian products starting next Wednesday. However, he excluded sectors such as aircraft and energy from this.

The reason given is the prosecution of former Brazilian President and Trump ally Jair Bolsonaro. President Luiz Inácio Lula da Silva calls the prosecution"blackmail," saying Trump is trying to influence a decision by the Brazilian Supreme Court. The prosecution accuses Bolsonaro of attempting a coup after his 2022 election defeat.

Syria, Laos, Myanmar and Iraq

Additional top tariff rates were imposed on Syria at 41 percent, Laos and Myanmar at 40 percent, and Iraq at 35 percent.

India

US imports from India will be subject to a 25 percent tariff after negotiations over access to the Indian agricultural market stalled. Trump is also threatening India with a"penalty" because the country continues to buy cheap Russian oil and gas, as well as weapons, despite the war of aggression against Ukraine. The threat of tariffs of around 100 percent, which could take effect at the end of next week, is looming. These so-called secondary sanctions could also affect other Russian trading partners, such as China and Brazil.

Indonesia and Vietnam

Indonesia has accepted a tariff of 19 percent, Vietnam 20 percent. According to Trump, Indonesia has also committed to purchasing 50 aircraft from the US manufacturer Boeing. It will also pay $15 billion for US energy supplies and another $4.5 billion for agricultural products.

Canada and Mexico

The measure hits the US's direct neighbor particularly hard: Canadian products will be subject to a 35 percent tariff instead of the current 25 percent. Trump justified this with an alleged lack of cooperation in the fight against illegal drug smuggling. He also stated that the G7 country's planned recognition of a Palestinian state makes a trade agreement"very difficult."

With Mexico, however, the US President agreed to a 90-day extension. This means the country will avoid a 30 percent tariff increase for the time being. The tariff increase announced for August 1st for Mexico has been avoided, President Claudia Sheinbaum wrote in a social media post, adding that the conversation with Trump had been"very good."

Trump primarily blames Mexico for the spread of the opioid fentanyl in the United States. During his first term (2017 to 2021), the president concluded a new free trade agreement with Canada and Mexico, which he partially rescinded after re-taking office in January.

China and Taiwan

China has not yet reached an agreement with the Trump administration, but both sides signaled this week their willingness to continue negotiations. US Treasury Secretary Scott Bessent told CNBC that the foundations for an agreement are in place, but it is not yet 100 percent complete. The deadline for reaching an agreement with Beijing is August 12.

The Taiwanese government has described the 20 percent tariff imposed on Taiwan as"temporary" and intends to negotiate a lower rate."Once a final agreement is reached, the tariff rate is expected to be further reduced," a cabinet statement said.

Australia

For Australian goods, for example, the base tariff rate continues to apply."While we are in the best possible position under the new US tariff regime, we will continue to work toward the elimination of all tariffs in line with our free trade agreement," said a spokesperson for Australian Trade Minister Don Farrell. The US traditionally maintains a trade surplus with Australia.

Other

Other countries, however, face significantly higher tariffs. These include South Africa (30 percent). According to the US government's list, Norway, Iceland, and Israel are subject to a tariff rate of 15 percent. For countries not listed by name, there is a flat surcharge of 10 percent.

Special regulations for metals

US copper imports are subject to surcharges of 50 percent – however, according to a new Trump decree, only on processed copper. The president justifies this with the metal's strategic importance, including in the production of semiconductors, aircraft, and munitions. The special 50 percent tariffs on steel and aluminum will also remain in place despite the tariff agreements.