New Delhi [India], August 1 : United States President Donald Trump has signed the fresh executive order imposing revised tariffs for 70 countries, including India and Pakistan in a move that is expected to strain global trade relations further.
Tariffs imposed on India's neighbouring countries are less than India's 25%, except for Myanmar at 40%. The new tariff for Pakistan is 19 %, Afghanistan 15 %, Bangladesh 20 %, Indonesia 19 %, Japan 15%, and Sri Lanka at 20%.
The new tariffs, outlined in a sweeping order signed on Friday (IST), will come into effect from 12:01 a.m. Eastern Daylight Time on August 7.
The executive order states that the revised tariffs are aimed at addressing the national emergency declared earlier under Executive Order 14257.
Trump noted that he had "recently received, among other things" new information and had determined it "necessary and appropriate" to impose additional ad valorem duties on the goods of certain trading partners.
These new duties will replace those previously imposed under the same order, as amended.
Other countries on which the US imposed tariffs are higher than India include Iraq (35%), Laos (40%), Libya (30%), Serbia (35%), South Africa (30%), Switzerland (39%), and Syria (41%).
Countries that imposed lower tariffs than India include the UK (10%), Vietnam (20%), Taiwan (20%), and South Korea (15%), to name a few.
The order by Trump stated "I have determined that it is necessary and appropriate to deal with the national emergency declared in Executive Order 14257 by imposing additional ad valorem duties on goods of certain trading partners".
The executive order further directs these changes will apply to goods entering the US for consumption or withdrawn from warehouses on or after the effective date.
However, goods already in transit before the deadline, loaded on vessels and en route before August 7 and entering the US before October 5, 2025, will not be subjected to the revised duties but will instead continue under the previously applicable tariff rates under the amended Executive Order 14257.
Ajay Bagga, a noted banking and market expert, told ANI, "Trump has rolled out dozens of unilateral tariff impositions ahead of the August 1st deadline, postponing implementation by 7 days to allow US Customs time to update their computers with the disarray posing as policy numbers that can change again and again. Markets are not happy, and from the US to Europe to Asia, last 24 hours have seen some pinks turning reddish. This policy chaos is here to stay, and despite the markets' fortitude and resilience, some cracks are appearing. Time to hunker down."
With global markets already facing multiple challenges, the new round of tariffs adds another layer of uncertainty to the trade environment.