Trump Signs New Executive Order to Change U.S. Trade Rules

On July 31, 2025, President Donald J. Trump signed a new executive order to increase pressure on countries that the U.S. says are trading unfairly. The goal is to fix trade problems that the Trump administration believes are hurting the U.S. economy and national security.

This order builds on a previous one from earlier in the year, adding new taxes (called tariffs) on some foreign goods, tightening trade rules, and adding stronger punishments for breaking those rules.

The main idea behind the order is fairness. President Trump says that if the U.S. treats other countries fairly, then those countries should do the same for U.S. goods. But many don’t, he says, and that has led to large trade deficits—when the U.S. buys more from other countries than it sells to them. The administration sees this as a threat to American jobs and military strength.

Using Emergency Powers

President Trump used emergency powers given to him under U.S. law to issue the order. He said the problems with unfair trade are serious and getting worse. Reports from government officials say many countries still use unfair taxes and rules or refuse to negotiate honestly. The order says this puts American factories and defense at risk.

Countries that haven’t made fair trade deals with the U.S. may now face penalties. But those that are trying to work with the U.S. could be rewarded with better trade terms if they follow through.

New Tariffs and Trade Rules

One big change is how much tax the U.S. will place on certain goods from other countries. Starting a week after the order was signed, new tariffs will be added to items from selected countries. Goods already on their way or covered by earlier agreements won’t be affected.

The European Union (EU) is mentioned by name. If an EU product is currently taxed less than 15%, the U.S. will now raise the tax to at least 15%. Products already taxed at 15% or more won’t see changes.

Countries not named in the order will see a 10% increase on certain goods. If companies try to cheat by sending goods through other countries to avoid tariffs, they’ll face a steep 40% tax, with no chance to reduce it.

Trade and Security

This order isn’t just about money—it’s also about security. The Trump administration says it wants trade deals that also support U.S. safety and military strength. Countries that cooperate may see taxes go down once new deals are in place. Countries that don’t may face more pressure.

The U.S. is using both rewards and punishments to push for fairer trade and stronger ties with allies.

Enforcement and What’s Next

To make sure these rules are followed, several U.S. agencies—like the Department of Commerce, Homeland Security, and others—will work together. They’ll track trade patterns, watch for cheating, and suggest new actions. A list of countries and companies suspected of cheating will be published twice a year to help American businesses make smart choices.

This new order doesn’t replace earlier tariffs on China, but it does show that the U.S. is getting tougher on trade under Trump. Instead of just relying on talks or global trade organizations, the U.S. is now using emergency powers to force change when needed.

Putting America First

This order continues Trump’s “America First” approach. The White House says trade deficits aren’t just a money problem—they’re a national emergency. The administration believes strong and direct action is necessary to protect American jobs and security.

It’s still unclear whether these steps will lead to better trade deals or more tension with other countries. But one thing is clear: the U.S. is ready to take bold action to protect its interests.

General informational content only. Not tax, legal, or investment advice. Consult a financial professional before making investment decisions. Conduct due diligence. All investments involve risk, including potential loss of principal.