Trump Adjusts Tariff Rates Before Deadline: 40% Duties Now Applied to All Transshipped Goods

U.S. President Donald Trump signed an executive order that changes tariffs on various countries, adjusting rates from 10% to 41%. This new order targets goods believed to be rerouted to dodge taxes, imposing an additional 40% tariff on those items, as noted by the White House.

Under the revised rules, countries not included in this order will automatically face a 10% duty. The changes will apply to goods entering the U.S. starting a week after the order, with some exceptions.

Notably, Trump is increasing tariffs on exports from Canada from 25% to 35%. However, items covered by the U.S.-Mexico-Canada trade agreement will remain unaffected.

Experts suggest that these tariff adjustments could impact inflation and consumer prices in the U.S. A recent report from the National Bureau of Economic Research indicates that similar tariff increases lead to higher costs for households. Additionally, these changes could strain relationships with trading partners, potentially leading to retaliatory measures.

Historically, tariffs have played a significant role in U.S. trade policy. For instance, during the 1930s, the Smoot-Hawley Tariff Act raised duties drastically, which led to a decline in international trade. Many worry that current changes may echo those past events.

On social media, reactions have been mixed. Supporters claim that the tariffs will protect American jobs, while critics warn they may hurt consumers and small businesses by driving up prices.

As these developments unfold, many are watching closely to see how they will affect the economy and international relations.

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