Trump threatens to escalate trade war with new round of tariffs up to 50%
'We'll have a straight, simple tariff of anywhere between 15% and 50%,' Trump said Wednesday at an artificial intelligence summit in Washington, DC.
Trump's latest tariff salvo was aimed at countries that have not yet secured bilateral trade frameworks with Washington.
Advertisement
4 President Donald Trump said Wednesday that his administration is preparing to impose a new round of tariffs ranging from a minimum rate of 15% to a clip as high as 50%.
REUTERS
While some nations are actively negotiating to lower their rates, Trump emphasized that he intends to apply a 'very, very simple tariff for some of the countries,' citing the logistical challenge of negotiating individual deals with over 150 nations.
'You can't negotiate deals with everyone,' Trump said.
Advertisement
He added that negotiations with the European Union were 'serious' and tied potential reductions in tariffs to increased access for American businesses.
'If they agree to open up the (EU) to American businesses, then we will let them pay a lower tariff,' Trump said.
The markets were mixed Thursday, with the Dow Jones Industrial Average falling 164 points, or 0.36%, to 44,846.29 as of noon.
The S&P 500 rose 13.68 points, or 0.22%, to 6,372.59, while the Nasdaq gained 43.05 points, or 0.21%, to reach 21,063.06.
Advertisement
4 Trump laid out his latest tariff plans, describing them as 'reciprocal' duties ahead of an Aug. 1 deadline.
Getty Images
Trump's comments mark a shift from statements when he initially proposed a universal tariff of 10% on nearly every country during his 'Liberation Day' rollout in April.
While his team has previously floated rates between 10% and 15%, Wednesday's remarks indicate that the baseline is now expected to begin at 15%, with significantly higher rates for countries with strained relations with the US.
Commerce Secretary Howard Lutnick said Sunday that smaller nations — including 'the Latin American countries, the Caribbean countries, many countries in Africa' — would face a baseline tariff of 10%.
Advertisement
Despite initial expressions of interest in formal trade agreements, Trump has recently suggested that the letters themselves constitute a form of dealmaking. Still, countries may reduce their rates through side agreements.
4 Trump's tariff initiative, which he began rolling out in April, is aimed at countries that have not yet secured bilateral trade frameworks with Washington.
REUTERS
On Tuesday, the White House announced that Trump had agreed to reduce a proposed 25% tariff on Japan to 15%. The reduction was made in exchange for Japan lifting certain restrictions on US products and pledging $550 billion in US investments.
A similar deal is reportedly under discussion with South Korea, according to people familiar with the matter. That country is also working toward securing a 15% tariff rate, including on automobiles.
In Southeast Asia, the Philippines is also seeking to lower its rate.
According to the country's ambassador to the US, Jose Manuel Romualdez, the Philippines hopes to bring down its current tariff rate from 19% to 15%.
Vietnam, another country weighing its options, is assessing the possible consequences of not securing a trade agreement. An internal Vietnamese government estimate projects that its exports to the US could fall by as much as one-third if higher tariffs take effect.
4 An aerial view of a container shipped docked at the Port of Oakland on May 20.
Getty Images
Advertisement
India and members of the European Union are also pushing for trade agreements before the new tariffs are enacted. As the deadline nears, multiple governments are working to either strike a deal or gauge the economic impact of the proposed levies.
Trump's increasingly firm stance on tariffs suggests a broader strategy to use trade policy as a lever for international concessions.
With the Aug. 1 implementation date fast approaching, the administration is signaling that countries will either accept the new terms or negotiate quickly to avoid higher costs.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
21 minutes ago
- Yahoo
BASF warns of weaker chemical demand amid US tariff effects
BERLIN (Reuters) -BASF said on Wednesday it expects demand for chemical products to grow less strongly than previously expected due to a deteriorating global economy. The volatility caused by U.S. President Donald Trump's tariffs policy and the general unpredictability of the U.S. government's decisions were fueling uncertainty and had an indirect effect on the German chemicals giant. "Thanks to our global strategy of serving customers through local production in their respective markets, the direct impact of the tariffs remains limited," said BASF while publishing its final second-quarter figures. "However, there are indirect effects, particularly associated with demand for our products and their prices." BASF had lowered its full-year outlook due to weaker-than-expected global economic growth and reduced demand for its chemicals due to U.S. tariffs earlier this month. In addition, margins remain under pressure due to continued high product availability on the market, added BASF. The United States and European Union agreed a trade deal on Sunday that would ensure there would be no tariffs from either side on certain chemicals, though it remains unclear which ones in particular would be exempt. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
21 minutes ago
- Yahoo
Tsunami waves hit Kamchatka and Japan after massive 8.8-magnitude earthquake off Russia
A powerful 8.8-magnitude earthquake off Russia's eastern coast on Wednesday triggered tsunami warnings and advisories across the Pacific, affecting regions from Hawaii and California to Japan and Russia. Tsunami waves struck parts of Japan's Hokkaido and Russia's Kuril Islands and a tidal surge of 1ft was recorded near Alaska's volcanic island of Amchitka at about 5.14pm Pacific Time, the highest water level above the normal tide reported so far from the tsunami, meteorologists said. Follow our live coverage of the aftermath of the earthquake here. The entire west coast of the US as well as Guam, the Philippines and the Northern Mariana Islands were alerted to watch for signs of dangerous waves, and parts of Canada, Russia, Indonesia, and Japan were also under tsunami alerts. The National Tsunami Warning Center upgraded the tsunami advisory to a tsunami warning for Northern California's coast from Cape Mendocino to the Oregon border, including Crescent City, where waves of 2 to 5ft could arrive around 11.50 pm PT on Tuesday. The rest of the California coast remained under a lower-level advisory, with smaller waves expected but still dangerous conditions. Crescent City was especially at risk, having suffered deadly tsunami damage in 1964. The Pacific Tsunami Warning Center said the earthquake hit just before 1.30 pm Hawaii Standard Time around 78 miles southeast of Petropavlovsk-Kamchatsky in Russia. Tsunami warning sirens sounded in Honolulu after Hawaii was upgraded from a tsunami watch to a tsunami warning, the Associated Press reported. Governor Josh Green issued an emergency proclamation, activating response centres across California and urging residents to take the situation seriously. Commercial flights at the Hilo international airport were suspended to aid emergency evacuations in nearby areas like Keaukaha as Hawaii prepared for a potential tsunami, the Hawaii Department of Transportation said. According to emergency officials, the first wave was expected at 7.17pm local time. On Kauai, authorities were urging residents to stay out of Hanalei to keep evacuation routes clear. President Donald Trump acknowledged the tsunami alerts in a post on Truth Social. 'Due to a massive earthquake that occurred in the Pacific Ocean, a Tsunami Warning is in effect for those living in Hawaii. A Tsunami Watch is in effect for Alaska and the Pacific Coast of the United States,' he said. 'Japan is also in the way. Please visit for the latest information. STAY STRONG AND STAY SAFE!' The earthquake was initially reported as a magnitude 8 but the US Geological Survey upgraded it to an 8.7 and later 8.8. A tsunami watch is issued when there's a potential for a tsunami to develop. That alert can be upgraded to an advisory if monitors find reason to believe the waves generated by a potential tsunami are likely to be dangerous. A tsunami warning is issued when widespread water inundation or significant coastal flooding is expected from a confirmed tsunami. The National Weather Service in the San Francisco Bay Area also published a post telling anyone in the area to keep up with developing news as waves from a potential tsunami could arrive just after midnight local time. 'TSUNAMI WATCH in effect for the California coast. Estimated time of arrival as early as 12:15 AM on July 30. People along the coast: Stand by for further updates,' the post read. Rising waters and strong currents could affect southern California, although widespread flooding was unlikely, the National Weather Service said. It warned that tsunamis often came in a series of waves over several hours, with the first not necessarily being the largest. Canadian officials issued a tsunami watch for parts of coastal British Columbia. Several people were injured in Russia's far eastern Kamchatka peninsula and much of Japan's eastern coastline was placed under evacuation orders. 'Today's earthquake was serious and the strongest in decades of tremors,' Kamchatka governor Vladimir Solodov said. Tsunami waves reaching 3-4m were reported in parts of Kamchatka, Sergei Lebedev, the region's emergency minister, said. Japan issued a tsunami advisory following the earthquake. Japanese meteorologists said a potential tsunami could inundate parts of the coastline up to a yard, according to CBS News. More than 1.9 million people across 21 prefectures had been asked to evacuate though the waves were currently far smaller than initially feared, Japan's Fire and Disaster Management Agency said. The largest evacuations were ordered in Hokkaido, Kanagawa, and Wakayama. Japanese authorities said tsunami waves of only 30-50 cm had been recorded thus far, far below the 3m forecast, but cautioned that larger waves could still arrive. As a precaution, the airport in the northern Japanese city of Sendai was closed. Its runway, located near the coast, was inundated during the devastating 2011 tsunami. Chief cabinet secretary Yoshimasa Hayashi said parts of three expressways had been shut and train services on 41 lines suspended. 'We ask that everyone in areas where an alert has been issued immediately evacuate to a safe place such as high ground or an evacuation building,' Japanese prime minister Shigeru Ishiba said in a statement. 'Even if a tsunami arrives, there is a chance that second and third waves will arrive, which will be even larger, so I ask that you pay close attention to information regarding tsunamis and do not leave safe locations until the warning is lifted.' The Philippines and Indonesia also issued tsunami warnings. Tsunami waves under 1m were expected to reach parts of the Philippines and Indonesia on Wednesday afternoon, the Philippine Institute of Volcanology and Seismology said. The Kamchatka earthquake is the sixth strongest ever recorded. It shares this rank with the deadly 2010 quake in Chile, which left over 500 people dead and caused widespread destruction and the 1906 earthquake off Ecuador and Colombia that triggered a tsunami, killing up to 1,500 people.
CNBC
21 minutes ago
- CNBC
Euro hovers near one-month lows after trade deal, focus switches to Fed
The euro steadied near its lowest in a month on Wednesday, nursing steep losses this week as investors counted the cost of the U.S.-EU trade pact and looked ahead to policy meetings from the Federal Reserve and the Bank of Japan. U.S. and Chinese officials agreed to seek an extension of their 90-day tariff truce on Tuesday, following two days of what both sides described as constructive talks in Stockholm. No major breakthroughs were announced, and U.S. officials said it was up to President Donald Trump to decide whether to extend a truce that expires on August 12. The Sino-U.S. talks come after a framework deal between the U.S. and EU was announced on Sunday. The accord has evoked a mix of relief and concern from Europe, as the agreement was lopsided and skewed towards the United States. "Markets seem to be increasingly interpreting trade agreements as symbolic and tactical rather than structural resolution," said Charu Chanana, chief investment strategist at Saxo in Singapore. "With terms often vague and enforcement mechanisms weak, investors are assigning lower market beta to these negotiations unless backed by concrete detail." The euro was 0.12% higher at $1.1558 in early trading after dropping for the first two days of the week and hitting a one-month low of $1.15185 on Tuesday. The euro is up 11.7% since the start of the year but on course for its first monthly drop this year. The single currency has benefited this year from the dollar losing its luster due to Trump's erratic trade policies, prompting investors to look for alternatives. Sterling was at $1.3358 and the Australian dollar last bought $0.6517. The offshore yuan was little changed at 7.178 per U.S. dollar. The Japanese yen firmed a bit to 148.20 per dollar. That left the dollar index, which measures the U.S. currency against six others, at 98.815, hovering near a one-month high. The index is set to record its first month of gains this year. Investor focus will now switch to central bank meetings, with the Fed due to announce its policy decision later on Wednesday. The Fed is widely expected to stand pat, making comments from Chair Jerome Powell crucial to gauge the policy path. The policy decision comes in the wake of Trump's constant demands for rate cuts, which have coincided with an unrelenting campaign of attacks on Powell by the president and administration officials. There is speculation that Governor Christopher Waller and Vice Chair for Supervision Michelle Bowman could issue dissents if the Fed on Wednesday holds the policy rate steady for the fifth time since December. "While dissenting isn't uncommon, the dissents at this week's meeting may get more focus because Trump has made it crystal clear that he thinks the FOMC should be lowering interest rates," said Kristina Clifton, a senior economist at the Commonwealth Bank of Australia in Sydney. "Dissents at this meeting may be judged as political and put a dent in perceptions of the FOMC's independence." The BOJ is also expected to stand pat and the spotlight will be on comments from Governor Kazuo Ueda as investors hope the recent trade deal between Japan and the U.S. paves the way for the central bank to raise interest rates again this year.
