Washington, Aug 1 (Reporter) US President Donald Trump signed a sweeping executive order imposing sharply higher tariffs on dozens of trading countries potentially upending the global trade system and signaling a renewed push toward a protectionist era. India continues to face a 25 per cent tariff on its goods under the new order. However, the “additional penalties” Trump had threatened over India’s ongoing imports of Russian oil remain unspecified. Trade negotiations between Washington and New Delhi have been taking place but are now reportedly stalled particularly over agricultural market access. Pakistan, meanwhile, received a more favourable outcome. Having recently finalized a deal with the US on oil reserves, Islamabad’s tariff rate has been reduced to 19 per cent, down from the 29 per cent reciprocal tariff imposed in April. Bangladesh's tariff has also been cut from 35 per cent to 20 per cent. Among the most significant changes, Trump announced that tariffs on Canadian imports would increase from 25 per cent to 35 per cent starting tomorrow. However, the White House clarified that goods compliant with the United States-Mexico-Canada Agreement (USMCA) would be exempt, softening the broader economic impact. The move is part of a broader Trump administration effort to implement “reciprocal tariffs” on countries with which the United States runs a trade deficit. The executive order outlines a two-tiered structure: a 10 per cent tariff remains for countries with a US trade surplus, while a 15 per cent base rate now applies to those with a deficit — impacting around 40 nations. Some countries will face even steeper rates, ranging from 20 per cent to 50 per cent, depending on their trade balance or the status of ongoing negotiations. The newly announced tariffs will take effect in seven days and apply to 69 countries. Specific rates include 41 per cent on Syrian imports, 35 per cent on select Canadian goods, 50 per cent on Brazil, 25 per cent on India, 20 per cent on Taiwan, and 39 per cent on Switzerland. Pakistan stands out as a notable outlier in South Asia, receiving the region’s lowest tariff rate. The reduction follows Islamabad’s rollback of a 5 per cent tax on foreign digital services. While experts believe the 35 per cent blanket tariff on Canadian goods will affect only a limited portion of bilateral trade due to USMCA exemptions, the White House also issued a separate order increasing tariffs on fentanyl-linked Canadian goods from 25 per cent to 35 per cent. Canada, the US’s second-largest trading partner after Mexico, was accused of “failing to cooperate” in curbing fentanyl inflows into the United States. In stark contrast, Mexico was granted a 90-day reprieve from a planned 30 per cent tariff on most non-automotive, non-metal goods, following a Thursday morning call between Trump and Mexican President Claudia Sheinbaum. However, tariffs on Mexican steel, aluminum, and copper will remain at 50 per cent, while non-USMCA-compliant goods will continue to face a 25 per cent duty, CNN reported. Trump claimed Mexico had agreed to dismantle several non-tariff trade barriers, though the White House has not released specifics. Meanwhile, the President took a much tougher line on Brazil, slapping a 50% tariff on most imports amid tensions over the prosecution of Trump’s close ally, former Brazilian President Jair Bolsonaro. Notably, sectors like aircraft, energy, and orange juice were spared. South Korea struck a deal with US and accepted a 15 per cent tariff—down from a proposed 25%—as part of a broader agreement that includes a $350 billion investment pledge in US-based projects to be selected by Trump. Tariffs on Taiwan were set at 20%, while Cambodia and Thailand will each face a 19 per cent duty. South Africa has been hit with a 30 per cent tariff, and Turkey with 15 per cent. The 39 per cent duty on Swiss goods has already triggered a decline in the Swiss franc against the US dollar. The administration clarified that countries not specifically named in the order's annex will face a default tariff rate of 10 per cent, CNN reported. Notably, the increased tariffs on Canadian goods from 25 per cent to 35 per cent came shortly after Canada’s formal recognition of Palestine as an independent state. While not cited in the official statement, analysts suggest the move may have influenced Washington’s decision. President Trump defended the measures as essential to correcting long-standing trade imbalances and protecting national and economic security. “Despite negotiations, some trading partners have failed to address imbalances in our trading relationship,” the executive order stated. A senior administration official added, “We have some deals, but we’ll let the President make those announcements,” he said...////...