U.S. tariff rates are climbing fast under Trump’s latest executive order. The White House confirmed a new 40% penalty on goods routed through third countries to bypass duties. These “transshipped” imports now face the steepest rate in the updated framework.
Trump also imposed fresh reciprocal tariffs on over 100 nations, citing imbalances and violations. India faces 25%, Taiwan 20%, South Africa 30%, Switzerland 39%, and Canada now 35%, up from 25%. The highest rate, 41%, applies to smaller markets like Syria and Singapore under the new reciprocal threshold policy.
“We will no longer allow countries to dump cheap goods while we just watch,” said White House Trade Advisor Stephen Vaughn.
https://www.reuters.com/world/americas/trump-increases-tariff-canada-35-25-cites-fentanyl-2025-07-31
China was warned separately. Scott Bessent, a former Soros CIO and Trump adviser, said, “There’s a bill moving through Congress right now that would allow the president to impose 100% to 500% tariffs on Chinese entities buying Russian oil.”
https://www.ft.com/content/1b58dfcb-df63-49b4-b437-f1f62202ac52
Beijing’s reply was blunt. “Tariff wars have no winners. Coercion and pressuring will not achieve anything,” said Foreign Ministry spokesperson Lin Jian.
https://www.scmp.com/news/china/diplomacy/article/3257302/china-blasts-us-bill-aims-punish-foreign-buyers-russian-oil
Meanwhile, markets reacted. Dow futures dropped 400 points, or 0.8%, S&P futures fell 0.9%, and Nasdaq futures slid 1%. Amazon shares dropped over 7% on weak earnings guidance. Goldman Sachs warned this could mark the start of long-term cost inflation for imported goods.
Yale Law School’s Trade Policy Center estimates that the U.S. now has an average effective tariff rate of 18.4%, the highest since the 1930s. This includes all base tariffs and penalty levies combined. Before Trump’s return, that figure stood near 2.3%.
No trading bloc outside the U.S. has matched the scale or breadth of these recent changes. Whether retaliatory action comes next will depend on how many countries absorb, redirect, or challenge these new costs.
