Washington, July 31, 2025 — Former U.S. President Donald Trump has given countries a deadline of August 1 to sign new trade deals with the United States. If they don’t, they will face high tariffs — extra taxes on goods they send to the U.S.
Some countries made deals to avoid the tariffs. Pakistan signed a trade agreement with the U.S. that includes lower taxes and help from American companies to develop its oil sector. South Korea also made a deal and agreed to a 15% tariff. In return, it will invest $350 billion in U.S. energy.
But other countries are in trouble. India will now face a 25% tariff because of its ties with Russia. Brazil may be hit with tariffs up to 50% due to political issues. Canada could also face 35% tariffs after supporting Palestinian statehood.
A court in the U.S. is now looking at whether Trump’s actions are legal. The hearing is focused on a law called the International Emergency Economic Powers Act. If the court decides Trump doesn’t have the legal power, some tariffs may be canceled. But for now, they are set to start on August 1.
These tariffs could make goods more expensive for people in the U.S. and cause problems for many businesses around the world.
