Today's News: Trump Administration Announces Sweeping New Global Tariffs
The new tariffs, set to take effect on August 7, are designed to address trade deficits and, in some cases, specific issues like alleged fentanyl flow.
Photo: Saul Loeb / AFP
Overview
Date: July 31, 2025
Topic: Trump Administration Announces Sweeping New Global Tariffs
Summary: President Donald Trump formalized a new system of high tariffs on July 31, 2025, aiming to rebalance global trade relations and revitalize domestic manufacturing. While some trading partners like the European Union, Japan, and the United Kingdom secured deals with lower tariff rates, many other countries, including Canada, face significantly increased duties, some as high as 50 percent. The new tariffs, set to take effect on August 7, are designed to address trade deficits and, in some cases, specific issues like alleged fentanyl flow. The policy faces considerable legal challenges regarding the President’s authority and has drawn criticism from economists and businesses concerned about increased costs and global supply chain uncertainty.
Sources
NBC News - Trump formalizes high tariffs as he tries to reshape the global economy
The Washington Post - Trump says sharper tariffs to take effect in a week, including 35% for Canada
Key Points
President Trump formalized an array of high tariff levels and trade deals through executive orders.
The new tariff system is designed to rebalance global trade relations, address U.S. trade deficits, and prioritize “fair and balanced trade” over “efficiency at all costs.”
Tariff rates vary significantly, with lower rates for countries that have secured trade deals with the U.S. (e.g., European Union, Japan, South Korea, United Kingdom) and higher rates for others.
The new duties are generally set to take effect on August 7, with goods shipped by vessel before that date and entering the U.S. before October 5 being exempt.
Ongoing trade negotiations continue with key partners like Mexico (granted a 90-day extension) and China (discussions for an extension beyond August 12).
The tariffs face legal challenges, with federal appeals courts hearing arguments on whether the President exceeded his authority, particularly under the International Emergency Economic Powers Act (IEEPA).
The policy is expected to raise costs for American consumers and businesses, contributing to potential inflation, but has also led to increased tariff revenue for the U.S. government.
Canada faces a significant tariff increase to 35%, partly attributed to its perceived inaction on curbing the alleged flow of fentanyl into the U.S.
Unique Highlights
NBC News uniquely quotes an unnamed manufacturer in a Dallas Federal Reserve survey stating, “Tariffs. Tariffs. Tariffs. Did I mention tariffs?”
The Washington Post provides specific details on how countries are divided into three brackets for tariffs (10% for trade surplus, 15% for small deficit, up to 41% for others) and cites the Yale Budget Lab for the U.S. average tariff rate increasing from 2.5% to 18.4%. It also highlights Apple CEO Tim Cook’s expectation of a $1.1 billion financial hit due to tariffs.
Fox Business specifically links the 35% tariff increase on Canada to its alleged failure to help curb fentanyl and illicit drugs, citing U.S. Customs and Border Protection data of 74 pounds of fentanyl seized at the northern border in fiscal year 2025. It also provides specific details on the deals with the European Union ($750 billion in U.S. energy, $600 billion investments) and Japan ($550 billion investment).
The New York Times includes a quote from Eswar Prasad, a professor of trade policy at Cornell University, calling it “a dark day in the annals of global trade integration” and stating Trump has “taken the hammer to the global rules-based trading system.” It also mentions Brazil facing a 50% tariff.
CNN highlights an additional 40% penalty on “transshipments” (goods routed through a low-tariff country to avoid higher duties). It also reports Taiwan’s statement that its 20% tariff rate is “provisional” and could be lowered. CNN further details the comparison of “constructiveness” in fentanyl talks between Mexico and Canada, noting only 43 pounds of fentanyl were seized at the Canadian border in 2024 (vs. 21,889 pounds total). It also quotes Ontario Premier Doug Ford calling the 35% tariff “concerning” and urging Canada to “hit back” with 50% tariffs on U.S. steel and aluminum.
The Wall Street Journal clarifies that the Canada tariffs only cover goods not exempted by the U.S.-Mexico-Canada Agreement (USMCA), effectively leaving 85% of Canadian goods duty-free. It uniquely reports on copper prices plummeting over 20% due to the 50% tariff being applied to copper products (wire and pipe) rather than raw copper, and mentions Ford Motor paying over $800 million in tariffs last quarter due to aluminum tariffs.
Contrasting Details
Effective Date for Canada Tariffs: Fox Business states that the 35% tariff on Canada begins “on Friday” (August 1). However, NBC News, The Washington Post, The New York Times, CNN (later in its report), and The Wall Street Journal all confirm that the general new duties, including those affecting Canada, will not take effect until August 7, to allow Customs and Border Protection time to prepare.
Fentanyl Seizure Data: Fox Business cites U.S. Customs and Border Protection data showing 74 pounds of fentanyl seized at the northern border in fiscal year 2025. CNN, however, cites a senior administration official stating that 43 pounds of fentanyl were seized at the Canadian border in 2024. These figures differ and pertain to different fiscal years.
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