New U.S. tariff rates take effect August 7 under Trump executive order

New U.S. import tariffs are set to take effect August 7 following an executive order from President Donald Trump, who signed the measure on his self-imposed deadline.

(CNN) -New U.S. import tariffs are set to take effect August 7 following an executive order from President Donald Trump, who signed the measure on his self-imposed deadline.

Under the order, a universal base rate of 10% will apply to imports from countries with which the U.S. maintains a trade surplus. For countries with which the U.S. has a trade deficit, the base rate rises to 15%.

Even higher tariffs are coming for more than two dozen nations, with some of the steepest on imports from Syria, Laos, Myanmar, Switzerland, Iraq, and Serbia. Notably, Canadian goods that are non-compliant with the U.S.-Mexico-Canada Agreement (USMCA) will now face a 35% duty.

Most products from Mexico, however, are getting a 90-day reprieve. White House Press Secretary Karoline Leavitt said Mexico has agreed to remove non-tariff barriers and continue working with the U.S. in good faith.

The administration maintains that the tariffs will boost the U.S. economy. “The American economy will boom like never before,” Leavitt said.

But some business leaders and economists are sounding alarms. U.S. companies warn that they may be forced to raise prices on consumers to offset the new costs. Natasha Sarin, President of the Budget Lab at Yale, estimates the average American family could see annual costs rise by roughly $2,400.

Stock market declines on the news reflect investor uncertainty about the tariffs’ long-term economic impact.