President Trump has unveiled one of the most sweeping trade moves in recent history — setting higher tariffs on nearly every country in the world. With the new policy taking effect this August, the rules of global trade are being rewritten once again. Here's what you need to know.

A Radical Shift in U.S. Trade Policy

In a dramatic departure from decades of globalization, President Donald Trump has introduced a sweeping tariff policy that affects nearly all U.S. trading partners. Announced just hours before the self-imposed August 1 deadline, the plan reinforces Trump's hardline approach: protect U.S. manufacturing, even at the cost of long-standing economic alliances.

"Tariffs on the vast majority of goods America imports are set to rise — even from countries with existing trade deals."

What Are the New Tariff Rules?

The U.S. will now apply a 10% tariff on goods from countries with which it has a trade surplus — meaning the U.S. exports more than it imports. That's relatively unchanged from earlier in the year.

But for countries where the U.S. runs a trade deficit, a minimum 15% tariff will be enforced. And it doesn't stop there.

"More than 25 nations face even higher rates, some going as high as 41%."

Countries Hit Hardest by New Tariffs

A total of 26 countries will see tariffs higher than the 15% minimum. Among them:

• India: 25%

• Taiwan: 20%

• Iraq: 35%

• Laos & Myanmar: 40%

• Syria: 41%

• South Africa: 30%

• Canada: 35% on non-exempt goods

Neighboring trade partners Mexico and Canada are also impacted. Canada's new 35% tariff kicks in immediately, while Mexico agreed to extend its current rate of 25% for another 90 days.

When Do the Tariffs Take Effect?

The broader set of tariffs will now come into force on August 7, allowing time for U.S. Customs to implement new collection protocols.

However, Canada's rates took effect on August 1.

Not Every Country Is Affected — Yet

Some countries have managed to dodge the worst of the tariff storm — at least temporarily.

• United Kingdom, China, and Mexico: Protected under recent trade frameworks.

• European Union: Avoided a 30% tariff; will face 15% instead.

• South Korea & Japan: Also capped at 15%.

• But these agreements are fragile — China's deal expires in less than two weeks, and tariff hikes could follow swiftly

Are These Tariffs Even Legal?

That's under debate. The Trump administration invoked the International Emergency Economic Powers Act (IEEPA) to justify the country-specific tariffs.

However, a federal court ruled earlier that this may be an overreach. The case is now under appeal, and judges are skeptical.

"Can the trade deficit be a threat when we've had one for decades?" — Judge Raymond Chen

The final ruling could take months and may even end up at the Supreme Court.

What This Means for You and the Economy

While inflation has been stable so far, companies like Walmart and Procter & Gamble have already warned of price increases due to tariffs. Consumers could soon feel the pinch.

Meanwhile, the stock market remains jittery — wary of unpredictable trade moves that could disrupt global supply chains.

Is Another Deadline Extension Coming?

Technically, yes — Trump already delayed the tariff implementation once. The official rollout now begins August 7. But if history is any guide, further delays or revisions are always on the table.

President Trump's latest trade move marks a bold — and risky — attempt to reshape global commerce. While it aims to protect American industries, it introduces new uncertainties for businesses, consumers, and global partners.

Stay tuned. The next move in this tariff chess game could come at any moment.