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Why Countries Without Trade Deals Are Facing Up to 50% US Tariffs

With President Donald Trump's August 1 tariff deadline locked in, countries without finalised trade agreements face steep new duties of up to 50%. While partners like the EU and Japan secured deals, others, including India and Brazil, now face rising costs. Economists warn rising tariffs may fuel US inflation and global trade tensions.

Published by Kriti Dhingra
Last updated: August 1, 2025 07:53:57 IST

As Trump's August 1 tariff deadline hits, dozens of countries without trade deals face duties up to 50%

President Donald Trump’s August 1 deadline now appears to be firm as the White House confirmed late Thursday that tariffs of up to 50% will kick in Friday on imports from nations that haven’t finalised a trade deal, The Associated Press reported. “THE AUGUST FIRST DEADLINE IS THE AUGUST FIRST DEADLINE — IT STANDS STRONG, AND WILL NOT BE EXTENDED,” Trump posted on Truth Social.

Who Has Made Deals and Who Hasn’t?

Countries with newly struck trade frameworks, including the EU, the UK, Japan, South Korea, Indonesia, Vietnam, the Philippines and Pakistan have been seemingly spared the worst of the duties. However, even these deals appear to leave tariffs well above pre-set levies. South Korea, for example, will now reportedly face a 15% tariff instead of earlier duties of 25%.

In contrast, larger economies like Brazil, India, Canada, Taiwan, South Africa, Sri Lanka and even Lesotho have yet to secure trade deals with the US. Brazil, to this date, faces a 50% duty with exemptions for aircraft, aluminum, and energy products, while India is slated for 25%, reportedly due to New Delhi’s continued oil purchases from Russia.

What’s Driving the Move

Trump says the tariffs are aimed at bringing manufacturing back to the US and pressuring trading partners to reduce barriers to American exports. The US President claims that foreign exporters will pay the cost, but economists say American businesses typically shoulder most of the burden anyway even as rising prices for consumer goods are already feeding into inflation.

Small Nations Squeezed

Countries without much bargaining power to secure deals face deep cuts to trade. Lesotho’s apparel sector has already been hit by a looming 50% tariff as thousands of jobs have reportedly vanished, even though the deadline was previously delayed, as reported by the AP. Addressing the scale of American duties, Trump had recently said, “There’s 200 countries … You can’t talk to all of them.”

With only days before the new duties take effect, dozens of governments and companies around the world are scrambling. Analysts have warned that these tariffs could reshape global trade flows, potentially drive inflation in the US, and strain diplomatic ties.

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