Former President Donald Trump raised the “reciprocal” tariff rates on exports from China, India, Turkey, and a handful of others through an executive order. These new rates will further exacerbate the harm inflicted on international trade. On April 2, 2025, Trump delivered the news from the Rose Garden at the White House. He shared the underlying rationale for some of the big shifts.
Starting August 1, 2025, the U.S. will levy additional tariffs from specific trading partners. These tariffs may increase to as high as 41%, a drastic increase from the former baseline rate of 10%. This action aims to counter unfair trade practices and level the playing field.
Out of those impacted, Syria would assume the highest tariff rate at 41%. This oversized jump is indicative of heightened geopolitical conflict and global trade war. Following Syria, Laos and Myanmar will be subjected to a higher rate of 40%. India’s new bound rate will be 25%. These changes will have significant impacts on the region’s trade partnerships and economic interactions.
In addition, this means that Taiwan, Bangladesh, and Vietnam will be subject to an affirmative 20% tariff rate going forward. Myanmar, Malaysia, Cambodia, Thailand and Pakistan will all be making a slightly lower tariff rate – 19% – their bound rate. Apart from their immediate trade applicability, these changes are indicative of a larger approach by the Trump administration to rebalance trade favors and promote domestic sectors.
The new executive order is more of the same from Trump on international trade, delivering on promises to defend American industry and labor. Trump wants to use tariffs as a bargaining chip to get better trade deals. His mission is to make the rules of the game fairer for U.S. exporters.