President Donald Trump issued a sweeping new executive order today—dubbed **”Liberation Day III”**—slating **tariffs of 10% to 41%** on imports from nearly 70 countries, effective **August 7, 2025**. The move marks the latest escalation in his trade policy push that began earlier this year with the inaugural Liberation Day tariffs on April 2 The Guardian reveals the full country-by-country rate list.
The administration characterized the tariffs as part of a “new system of trade,” invoking economic leverage under the **IEEPA**. A baseline **10% duty** will apply to imports from countries without trade deals, with steeper rates—**up to 41%**—targeted at nations such as **Switzerland (39%)**, **Laos (40%)**, and **Syria (41%)** Vogue Business outlines country-specific rates and **Reuters** notes the expanded implications for 69 trade partners on reciprocal rate computations.
This policy follows Trump’s earlier “Liberation Day” in April, which introduced a **two-tier tariff framework based on trade deficits**. Those rates had been delayed twice but are now locked in starting August 7, reinforcing the administration’s aggressive economic posture Time summarises the broader trade context and **Newsweek** reports the shift to a more permanent trade stance on evolving tariff strategy.
“A new system of trade begins now,” — White House statement unveiling Liberation Day III framework.
The rate adjustments vary by partner: **India** faces a 25% levy, while countries like **Japan, South Korea, Chile, and Vietnam** receive carefully adjusted rates from their earlier escalation threats. **Australia**, by contrast, secured a favorable **10% baseline** by avoiding aggressive stances—though still faces sectoral penalties like 50% on metals and potential industry-specific duties The Australian highlights Australia’s diplomacy success and **AP News** outlines the new tariff order on rate tiers across 68 nations.
These tariffs remain contested. In **March 2025**, a federal trade court ruled that Trump’s initial implementation under IEEPA overstepped executive power, though a stay allowed tariffs to remain while the appeal proceeds. The legality of “Liberation Day III” is expected to be challenged in courts soon as legal records show and **Sky News** discusses mounting judicial review risks on constitutional challenges.
The administration claims the policy generated over **$150 billion in tariff revenue** previously; the new rates are projected to raise further income—though critics warn of widespread inflation, supply-chain disruption, and pressure on U.S. consumers and small businesses as seen in global market reactions and **Vogue Business** details sectors like fashion facing profit squeeze on apparel and consumer impact.
Major export economies such as **China, India, Taiwan, and members of the EU** are adjusting to custom rates—India at 25%, EU nations between 15‑25%, and China marked closer to 34‑36%. Meanwhile, Canadian goods remain at 35%—a rate tied to disputes over fentanyl trafficking and diplomatic stance on Palestinian statehood as rate logic explained and **Reuters** documents global reactions on retaliatory dynamics.
Business community leaders have expressed concern. Industry surveys suggest rising tariffs will cut into margins, raise consumer prices, and disrupt global supply chains. Some companies warn layoffs may follow and others suggest re-shoring manufacturing amid uncertainty noting luxury brands’ caution and **Newsweek** analyzes capital market effects on inflation outlook.
With the August 7 deadline looming and no further extension planned, “Liberation Day III” signals an entrenched shift in U.S. trade posture—moving away from ad hoc tariffs toward a systemic recalibration of global relations. Whether these rates lead to negotiated reductions or entrench worldwide market volatility remains to be seen.
