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Trump Sets Global Tariff Floor at 15%, Eyes Up to 50% for Some Countries

by Team Lumida
July 24, 2025
in Macro
Reading Time: 4 mins read
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Trump Delays Reciprocal Tariffs to August 1, Citing Progress in Trade Negotiations
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Key Takeaways:

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  1. Tariff Floor Rises: President Trump announced that new U.S. “reciprocal” tariffs will start at 15% and go as high as 50% for certain countries, raising the minimum from earlier proposals of 10%.
  2. Broad Application: The tariffs will apply to nearly all U.S. trading partners starting Aug. 1, with only a handful of countries negotiating lower rates through new trade frameworks.
  3. Deal-Making Pressure: Japan secured a reduction to 15% (from a threatened 25%) by agreeing to open markets and back a $550 billion investment fund. South Korea and the Philippines are also negotiating to reach the 15% floor.
  4. Global Impact: Countries like Vietnam warn that higher tariffs could cut their U.S. exports by up to a third. The EU and India are still seeking deals to avoid the steepest rates.
  5. No Blanket Negotiations: Trump is positioning the tariff letters themselves as “deals” and is largely uninterested in drawn-out negotiations, though he’s left the door open for select agreements that open foreign markets to U.S. business.

What Happened?

At an AI summit, Trump confirmed that the U.S. will impose a new global tariff regime starting at 15% on most trading partners, with higher rates for countries with strained U.S. relations. While some nations have negotiated lower rates, most will face the new tariffs unless they strike last-minute deals. The administration is using the threat of higher tariffs to push for greater market access for U.S. goods and investment commitments.


Why It Matters?

This marks a significant escalation in U.S. trade policy, with the potential to disrupt global supply chains, raise costs for importers, and pressure foreign governments to open their markets. The move could reshape global trade flows and impact economic growth in both the U.S. and its trading partners.


What’s Next?

Watch for final trade deals before the Aug. 1 deadline, the economic fallout for countries unable to secure lower rates, and the response from major trading blocs like the EU and India. The effectiveness of Trump’s strategy will depend on how much market access the U.S. can extract in exchange for tariff relief.

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© 2025 Lumida Wealth Management LLC is an SEC registered investment adviser. Privacy Policy. Cookies Policy.
Disclaimer Important Information This site is for informational purposes only. Information presented on this site does not constitute as investment advice.

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Lumida's website (referred to herein as the "Website") is limited to the dissemination of general information pertaining to its advisory services, together with access to additional investment-related information, publications, and links. Accordingly, the publication of the Website on the Internet should not be construed by any client and/or prospective client Lumida’s solicitation to effect, or attempt to effect transactions in securities, or the rendering of personalized investment advice for compensation, over the Internet.

Any subsequent, direct communication by Lumida with a prospective client will be conducted by a representative that is either registered or qualifies for an exemption or exclusion from registration in the state where the prospective client resides.

‍Lead Capture Forms: By submitting your contact information in the forms on this site, you are not obligated to invest in Lumida's product or services.
‍Address: Lumida Wealth Management, 25 W 39th Street Suite 700, New York, NY 10018