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Latest developments in Trump’s tariffs policies

Aug 1, 2025 United States

Now that Trump’s self-imposed deadline for the 1st of August has been reached, we present the latest update on tariff policies, highlighting the main concerns for the fashion industry

The US’s new tariff policy was due to come into force on the 9^th of July, but the Trump administration announced an extension to the deadline until the 1^st of August. This was intended to encourage more countries to close deals, as was the case with Japan, Indonesia, Vietnam or the EU. But where does global trade stand now?

The White House has confirmed that a 10% tariff will apply to countries with which the US has a trade surplus. Then, a new tariff floor of 15% will be introduced for countries with which the US has a trade deficit. Around 40 countries will be subject to the new 15% tariff. These will come into effect in the 7^th of August.

This will be a lower tariff for many of these countries than the ‘reciprocal’ tariffs introduced in April, but a higher one for a few. Syria will have the highest tariff at 41%, followed by Laos and Myanmar at 40%, and Switzerland at 39%.

In addition, as Trump threatened, tariffs on Canada will also increase from 25% to 35% due to its support for Palestinian statehood impacting trade negotiations. Mexico has agreed to a 90-day continuation of the current 25% tariff rate that the US places on items do not exempt under the US-Mexico-Canada free trade agreement.

However, there are key fashion goods manufacturing countries that will face rates of at least 20%, including some that have reached framework agreements with the US. As previously announced, Vietnam will be subject to a 20% tariff. India, which reached an agreement just two days ago, will be subject to a 25% tariff “plus an unspecified penalty” for purchasing Russian oil and weapons, according to President Donald Trump.

Meanwhile, China is facing a 12^th of August deadline to reach a lasting tariff agreement with the Trump administration, following preliminary deals reached in May and June.

The silver lining is that Bangladesh and Cambodia will only face tariff rates of 20% and 19%, respectively, as just released by the White House.

Brazil

A major exception to this scenario is Brazil, with which the US runs a trade surplus. This meant that goods from Brazil were previously subject to the universal tariff rate of 10%.

However, Donald Trump declared a ‘national emergency’ regarding Brazil, once again invoking the International Emergency Economic Powers Act (IEEPA) and raising tariffs on Brazilian goods from 10% to 50%. This will take effect on the 6th of August. This threat arose a few weeks ago due to charges against the former right-wing president, Jair Bolsonaro.

End Of The Minimis

An executive order was also issued to suspend minimis treatment for low-value shipments to the US from any country, with effect from the 29^th of August. De minimis is currently suspended for products from China and Hong Kong. The Footwear Distributors and Retailers of America (FDRA) recalls that the ‘Big Beautiful Bill’ would have ended de minimis for all countries in July 2027, rather than in four weeks.

Source: edition.cnn.com, voguebusiness.com and reuters.com

Image Credits: ca.finance.yahoo.com

United States Economy International Trade Trump tariffs