U.S. Tariff Changes Coming This August: Who, What & Why
As of early August 2025, the U.S. is enacting major new tariffs across dozens of countries and commodity sectors. These changes stem from a broad shift toward "reciprocal" tariffs under the Trump administration and Section 232 national security actions.
Key Tariffs Taking Effect August 1–7, 2025
- 🇧🇷 Brazil: 50% tariffs on Brazilian imports, including copper and other goods, effective August 1 Tax Foundation+11PBS+11New York Post+11The GuardianReuters
- 🇨🇦 Canada: Uplift from 25% to 35% on most imports not compliant with USMCA, effective August 1 WikipediaReuters
- 🇮🇳 India: 25% tariff on Indian goods, effective early August as part of reciprocal rate structure Wikipedia+2AP News+2The Guardian+2
- 🇹🇼 Taiwan: New 20% duty on imports from Taiwan, effective early August The Guardian+1Midland Daily News+1
- 🇨🇭 Switzerland: 39% tariff on Swiss goods, effective early August Wikipedia
- All other non-exempt countries: Baseline 10% “Liberation Day” reciprocal tariff, typically effective by August 7 The Guardian+7Wikipedia+7New York Post+7
Separate High-Duty Tariffs Under Section 232
- Steel & Aluminum: 50% across the board on imported steel and aluminum (including empty cans), in effect since June 4, 2025 Wikipedia
- Automobiles & Auto Parts:
- 25% on most imported vehicles, and a 25% rate on auto parts (as of May 3, excluding parts compliant with USMCA rules Wikipedia+4Wikipedia+4Wikipedia+4
Summary: Who's Affected & What Products
| Country / Category | Tariff Rate | Effective | Affected Imports |
|---|---|---|---|
| Brazil | 50% | 8/1 | Copper, general goods |
| Canada (non‑USMCA compliant goods) | 35% | 8/1 | Lumber, steel, machinery, food, beer, electronics |
| India | 25% | ~8/7 | All general imports |
| Taiwan | 20% | ~8/7 | General imports |
| Switzerland | 39% | ~8/7 | General imports |
| All other non‑exempt countries | 10% (baseline) | ~8/7 | Broad reciprocal import levy |
| Steel & Aluminum imports | 50% | Since 6/4 | Metals, appliances |
| Autos & Auto‑parts (non‑USMCA) | 25% | Since 5/ | Vehicles, key parts |
Consumer & Economic Impact
- Clothing, footwear, and textile imports are up to 40% costlier for U.S. consumers; long-term price hikes remain elevated by 17%–19% Kiplinger+14budgetlab.yale.edu+14Wikipedia+14Politico+3Reuters+3Wikipedia+3WikipediaReuters+5The White House+5New York Post+5AP News+5Wikipedia+5The Guardian+5The Guardian+1The Times of India+1Wikipedia+13The Guardian+13Wikipedia+13Reuters
- Imported goods prices rose roughly 3% between March and July, signaling early inflationary pressure aljazeera.com+1The Guardian+1
- U.S. average import duty rate is now around 15.6%, the highest since the 1930s, and may remain elevated as part of budget strategies ReutersTax Foundation
Why It Matters Now
- These tariffs are meant to enforce reciprocal trade and protect domestic industries, but trade partners like Canada and Mexico have launched retaliatory measures.
- U.S. Trade Representative Jamieson Greer has emphasized that these new rates are "pretty much set" amid ongoing negotiations and unlikely to be lowered Reuters+4Reuters+4The Times of India+4
- With trade talks still underway with countries like China, EU, and Japan, some duties could be modified—but core rates are firmly in place for now The GuardianKiplinger
Key Takeaways
- Importers from Brazil, India, Taiwan, Switzerland, Canada, and many others face significant tariff increases starting early August.
- Bulk commodities like steel, aluminum, autos, copper, and textiles are hit hardest.
- Consumer prices on clothes, household goods, and food are already trending higher.
- USMCA-compliant goods still receive exemptions—verified compliance is essential.
- Budget reliance on tariff revenue makes these measures politically and fiscally persistent ReutersKiplinger.