U.S. President Donald Trump signed a sweeping Executive Order modifying tariff rates on multiple countries, including India and Pakistan, as part of a continued effort to address what he called persistent and damaging U.S. trade deficits. The action builds on the national emergency declared under Executive Order 14257 issued earlier this year and aims to counter foreign trade practices that the administration says threaten national security and the American economy.

The Executive Order, issued under the authority of the International Emergency Economic Powers Act (IEEPA), the National Emergencies Act, and the Trade Act of 1974, introduces new ad valorem duties on a broad list of countries. India will now face a 25% tariff on targeted goods, while Pakistan has been assigned a 30% tariff under the revised framework. Other nations affected include Iraq (35%), Laos and Myanmar (40%), Switzerland (39%), Syria (41%), Brazil and the United Kingdom (10%). The European Union will face conditional tariffs—any goods currently taxed below 15% will be raised to that level, while existing higher tariffs will remain unchanged.

According to the order, the changes will be incorporated into the Harmonized Tariff Schedule of the United States (HTSUS) and will take effect seven days from the date of issuance. Goods in transit before the effective date and arriving before October 5, 2025, will be exempt. Trump said the decision follows updated recommendations from senior trade and national security officials, who raised concerns about the long-term risks associated with foreign dominance in key sectors and the erosion of domestic manufacturing.

The Executive Order also targets the practice of transshipment, where goods are rerouted through third countries to bypass tariffs. Any goods identified by U.S. Customs and Border Protection as being transshipped will now face an additional 40% duty, on top of standard rates and penalties. A list of flagged countries and companies engaged in such practices will be published every six months to support national procurement and enforcement reviews.

Implementation of the revised trade policy will be overseen by the Secretary of Commerce, the Secretary of Homeland Security, the U.S. Trade Representative, and other relevant officials.