President Trump’s new “reciprocal” tariff rates on dozens of trading partners are set to finally take effect on Thursday, as markets, businesses and consumers brace for a major shake-up of the global trade system.

The president signed an executive order last Thursday that announced the new rates but bumped the start forward by a week. Once the new tariffs are implemented, the average tariff rate will be around 15 percent, compared with the roughly 2 percent rate in 2024.

He had first announced the plan for the tariffs on April 2 but imposed a 90-day extension a week later, amid pressure from Wall Street and fellow Republicans to calm the ailing markets. The early July tariff deadline for the 90-day extension to expire was then extended to Aug. 1, with Thursday expected to be the final deadline. 

The executive order stated that all imports will face a 10 percent tariff. Some trading partners will face higher rates, including 41 percent on Syria, 19 percent on Indonesia and Thailand, and 15 percent on South Korea, Japan and the European Union.

The order also includes Laos (40 percent), Switzerland (39 percent), Iraq (35 percent), South Africa (30 percent), India (25 percent), Algeria (30 percent), Moldova (25 percent) and Nicaragua (18 percent).

Other trading partners will face higher tariffs because of a specific issue cited by Trump. He will hit Brazil with a 50 percent tariff, in part citing the country’s prosecution of former President Jair Bolsonaro over his efforts to remain in power after losing an election, and he will hit Canada with a 35 percent tariff, citing frustrations with the flow of fentanyl across the U.S. border.

Trump vowed to impose steep tariffs on the campaign trail, arguing that the U.S. has been ripped off by trading partners for too long and that high tariffs could lead to more domestic manufacturing. 

With tariffs finally expected, businesses and consumers alike are bracing for higher prices.

What goods are exempt?

If a good is already on a cargo ship and heading for the U.S., it is not subject to the tariff.

Goods that are covered by the U.S.-Mexico-Canada Agreement signed in 2020 will also be exempt from tariffs on Canada and Mexico.

The president also made rules around transshipment, including in the order that goods sent through a country that has a lower tariff rate compared to the country of origin, with the intent to evade applicable duties, will face a 40 percent tax. 

And, he ended the exception on de minimis goods, meaning that on Aug. 29, goods shipped with a commercial carrier worth $800 or less no longer can avoid import fees.

What other tariffs are coming?

Friday, meanwhile, marks Trump’s deadline for Russia to agree to a ceasefire with Ukraine or face “severe” tariffs. They are still expected to be imposed, even after special mission envoy Steve Witkoff met Wednesday with Russian President Vladimir Putin.

Trump also threatened to slap a 100 percent “secondary” tariff on countries that do business with the Kremlin, including those that purchase Russian oil and gas, such as India. Trump signed an executive order on Wednesday to raise tariffs on India by an additional 25 percent, though not for another three weeks.

Trump suggested on Wednesday that more countries could face secondary tariffs for buying Russian oil, after India.

“You’re going to see a lot more. You’re going to see so much secondary sanctions,” Trump said.

Trade talks with China are ongoing, and Trump officials discussed extending the Aug. 12 deadline for a 30 percent tariff on Chinese goods. Trump would still need to agree to an extension, and it’s unclear how long it would last.

The president has also threatened industry-specific tariffs, including tariffs of up to 250 percent on pharmaceutical imports. The administration imposed copper tariffs this month, though certain products will not be tariffed until 2027. Tariffs on automobiles and steel and aluminum are already in place.