President Donald Trump’s sweeping “reciprocal” tariff regime took effect just after midnight on 7 August, imposing new duties on more than 90 countries and reshaping nearly $1.6 trillion of annual U.S. imports. The move lifts the average effective U.S. tariff rate to roughly 18.3 percent—its highest level in almost a century—after climbing more than two percentage points overnight. The levies range from 5 percent on certain shipments from the European Union and Japan to 50 percent on goods from Brazil, with Syria facing 31 percent and Switzerland 39 percent. India now attracts a 25 percent tariff and could see that figure doubled later this month if it continues buying Russian oil. Major U.S. partners such as South Korea and the EU generally face 15 percent duties, while Canada and Mexico retain separate schedules tied to their free-trade pact. The White House says the tariffs will narrow the trade deficit and encourage domestic production, but businesses and economists warn that higher import costs risk feeding inflation, disrupting global supply chains and prompting retaliation abroad. The Federal Reserve has already cited tariff pressures in its decision to keep interest rates on hold, and governments from Brussels to Brasília are weighing their responses as the new trade architecture settles in.