President Donald Trump’s trade war has reached a new phase as the August 7 deadline for higher tariffs takes effect. The Trump administration had set August 1 as the original deadline for countries to agree to trade deals with the United States or face even steeper tariffs. While the administration never expected to complete 90 trade deals in 90 days, it has made progress in setting tariff rates on trading partners around the world.
According to MSNBC, the modal tariff rate appears to be 15% for countries like the European Union, Japan, and South Korea. However, other nations face much higher rates, including 50% on Brazil and a threatened 25% in India. These tariffs are sales taxes on imports that are paid first by the importer, who then tries to pass the costs down to wholesalers, retailers, and ultimately to American consumers.
