WASHINGTON, D.C. – A new tariff plan from the Trump administration is set to take effect Thursday, August 7, marking a significant shift in U.S. trade policy. This change will impact nearly every country with which the U.S. trades.
The administration’s economic team believes this policy will protect American jobs and boost investment in the U.S. economy. Stephen Miran, Chair of the Council of Economic Advisers, emphasized the benefits.
“We’re creating trade deals left and right that have unlocked enormous new potential for the American economy. The tariff uncertainty is fading away. Tariff rates are settling in,” Miran stated.
The plan introduces a 10% universal tariff rate on countries where the U.S. has a trade surplus, meaning the U.S. exports more than it imports. For countries with a trade deficit, the rate is 15% or higher.
Washington Democratic Senator Patty Murray expressed strong opposition during a press conference.
“We’re here to explain how tariffs work to a president who clearly doesn’t understand what he’s doing,” she said. “It’s already killing jobs and dragging down economic growth across the country. It will cause small businesses to raise prices, and some of them will shutter altogether… the entire premise of this trade war is unimaginably stupid.”
Analysts warn the revenue from these tariffs, paid by U.S. importers, will likely be passed on to American consumers. This could lead to higher prices for various products, from coffee brewed with Brazilian beans to iPhones made with Indian parts.
Major trading partners such as the United Kingdom, China and Mexico did not see any changes to their tariff rates with this new plan.
