Senator Rand Paul, R-Ky., discusses the impact of retaliatory tariffs on Kentucky bourbon and whisky as well as the effects of tariffs on consumers on ‘Kudlow.’
President Donald Trump’s higher import taxes on dozens of countries went into effect on Thursday, just as the economic impact of his earlier tariffs had started to show visible harm to the U.S. economy.
The new broad tariffs went into effect just after midnight on Thursday, going as high as 50%. They come after some major trading partners have reached framework deals for trade and investment concessions with Trump.
The White House said goods from more than 60 countries and the European Union would face tariff rates of 10% or higher. Products from Japan, South Korea and the European Union will be taxed at 15% and imports from Taiwan, Vietnam, Bangladesh and others will be levied at 20%. Britain will only be taxed at a 10% rate.
Trump has anticipated that places like Japan, South Korea and the European Union investing hundreds of billions of dollars in the U.S.
TRUMP RAISES TARIFFS ON INDIA, CANADA, BRAZIL AND OTHERS OVER STALLED TRADE DEALS
President Donald Trump’s higher import taxes on dozens of countries went into effect on Thursday. (Anna Moneymaker/Getty Images / Getty Images)
“I think the growth is going to be unprecedented,” Trump said on Wednesday, adding that the U.S. was “taking in hundreds of billions of dollars in tariffs.”
Goods loaded onto U.S.-bound vessels and in transit before midnight can enter at the previous lower tariff rates before October 5, according to a CBP notice to shippers issued this week. Imports from many countries had been facing a baseline 10% import duty after Trump paused higher rates announced in April.
The new broad tariffs went into effect just after midnight on Thursday, going as high as 50%. (Reuters / Reuters Photos)
Trump has since amended his tariff plan, hitting some countries with higher rates, including 50% for goods from Brazil, 39% from Switzerland, 35% from Canada and 25% from India.
The president announced a separate 25% tariff on Indian goods on Wednesday to be imposed in 21 days over the country’s purchase of Russian oil.
China, which has imposed retaliatory tariffs, will face a potential tariff increase on August 12 unless Trump approves an extension of an earlier truce after negotiations held last week. He has said he may impose additional duties in response to China’s purchase of Russian oil.
The Trump administration holds the position that now that companies understand the direction the U.S. is headed when it comes to tariffs, it can bolster new investments and boost hiring to support the U.S. economy.
TRUMP HITS INDIA WITH 25% TARIFF OVER RUSSIA OIL PURCHASES
Goods loaded onto U.S.-bound vessels and in transit before midnight can enter at the previous lower tariff rates before October 5. (Luke Sharrett/Bloomberg via Getty Images / Getty Images)
U.S. Treasury Secretary Scott Bessent has predicted that U.S. tariff revenues could top $300 billion a year. But U.S. companies and consumers are bracing for the impact of new duties.
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Trump has celebrated the vast increase in federal revenues from his import tax collections, which are paid by companies importing the goods and consumers of the products.
Reuters contributed to this report.
