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Trump’s New Tariff Plan Takes Effect, Marking Major Shift in U.S. Trade Policy

by WZMQ
August 7, 2025
A A

By Brendan Scanland

WASHINGTON, D.C. — After months of delays, President Donald Trump’s new tariff plan is in full effect. 

Just after midnight, a sweeping set of tariffs kicked in — marking the biggest shift in U.S. trade policy in decades. Most imports now face a minimum 10% duty, with the average tariff rate expected to climb above 17% — the highest since the Great Depression. 

The new tariffs impact goods from dozens of countries, including major trade partners like the European Union, Japan and South Korea. Products from those countries will be taxed at 15%, while goods from Taiwan, Vietnam and Bangladesh will see a 20% rate. 

As far as what products will be impacted — it will be wide-ranging. Everything from European appliances and Japanese cars to Chinese toys and South Korean TVs. However, not everything is affected: Some oil, gas and smartphones — as well as goods tied to existing agreements with Canada and Mexico — are exempt. 

This week, President Trump also said the U.S. will double the current tariffs on India to 50%. It’s a direct result of India’s trade ties with Russia. President Trump said he would ramp up pressure on countries that purchase large amounts of oil from Russia to deter Russia’s aggression in Ukraine. 

“India is a strategic partner with whom we engage in a full and frank dialog,” said Tommy Piggot, principal deputy spokesperson for the State Department. “Like anything in foreign policy, you’re not going to align 100% of the time on everything. But the president’s been clear — the concerns that he has with the trade imbalance, the concerns he has with India purchasing Russian oil. He’s been clear on that, he’s taken action.” 

Although President Trump says he also expects hundreds of billions in foreign investment to follow the tariffs, his trade policy is still the most aggressive in decades—prompting concerns among many economists. Less than ideal job numbers from May and June have also sparked concerns about the economic outlook. 

Still- some major companies are making big investments in the U.S. On Wednesday, Apple CEO Tim Cook announced an additional $100 billion for manufacturing in the United States, bringing their total U.S. investment to $600 billion over the next four years. 

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