Live updates: US tariffs up to 50% kick in worldwide, sparing few

CNN

4 days ago

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Title: Stocks rise after tariffs go into effect
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Markets continued to look past economists' warnings about higher tariffs' potential to jack up prices and slow the US economy. Instead, investors are continuing to cheer better-than-expected technology earnings, betting that the AI-fueled tech sector will continue to send stocks to new record highs.
Dow futures rose 275 points, or 0.6%. The Dow is around 800 points away from a record high – the only major US index that hasn't yet hit an all-time high this year.
S&P 500 futures were 0.9% higher and Nasdaq futures also rose 0.9%.
Apple (AAPL) rose 3% in premarket trading after it committed another $100 billion in US manufacturing investment and secured an exemption from new tariffs on India – where it had shifted all of its US iPhone production. Apple also won't have to pay Trump's threatened 100% tariff on US semiconductors.
The US dollar and bond yields remained mostly steady Thursday morning. The dollar has been falling throughout the year, as investors bet that tariffs will erode the world's trust in the United States as a safe place to invest. US bond yields had been on the rise, but they've fallen in recent days after last week's worse-than-expected economic news raised US recession fears on Wall Street.
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Title: Here's what could get more expensive from Trump's massive tariff hikes
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President Donald Trump has said that tariffs won't lead to higher prices. But the United States economy seems to disagree: Inflation, which has remained fairly tame, is slowly creeping up because of tariffs.
Trump's latest round of higher taxes on imports, which went into effect Thursday, will immediately make imported goods from impacted countries more expensive in the United States.
The new tariffs will probably raise prices on:
Electronics: Computers are among the top goods the United States imported last year, mostly from high-tariff nations, including China, Mexico, Taiwan, Vietnam and Malaysia.
Clothing: America buys much of its apparel from other countries. Top destinations include China, Vietnam, Bangladesh, India and Indonesia.
Watches: Wristwatches are one of the top exports to the United States from Switzerland, which now has a 39% tariff.
Shoes: China, Vietnam and Indonesia are top destinations where shoes are made and tariffs are set to start at a minimum of 19% for the three countries, come next week.
Alcohol: Tariffs on goods from the European Union, a main supplier of alcoholic beverages, including wine, whiskey and vodka, rose to 15% Thursday.
Furniture: Vietnam is the top source of imported furniture, followed by China.
Toys: Mostly made in China and Vietnam. Toy brands have warned of higher prices.
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Title: Trump says he will place a 100% tariff on chips and semiconductors
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President Donald Trump said on Wednesday that he will soon be imposing a 100% tariff on all imported chips and semiconductors.
'We'll be putting a tariff on of approximately 100% on chips and semiconductors,' Trump said at an Oval Office event, speaking alongside Apple CEO Tim Cook. He did not say when a formal announcement would come or when any chip tariffs would take effect.
Trump hinted at exemptions to the tariffs for companies that have begun the process of building new manufacturing facilities in the United States.
'If you're building in the United States of America, there's no charge, even though you're building and you're not producing yet in terms of the big numbers of jobs and all of the things that you're building,' he said.
Trump's announcement comes just hours ahead of his self-imposed deadline for when a slew of new tariffs will be enacted on dozens of countries.
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Title: India's Modi says he will 'pay a heavy price' for not bowing to Trump trade threats
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Indian Prime Minister Narendra Modi conceded Thursday that he may 'pay a heavy price' as he defended his decision not to bow to US trade threats and face steep tariffs as a result.
'For us, the interest of our farmers is our top priority. India will never compromise on the interests of farmers, fishermen and dairy farmers. I know personally, I will have to pay a heavy price for it, but I am ready for it,' he said.
Trump has been critical of what he sees as India's protectionist trade policies as well as its continued purchases of Russian oil.
Goods from India are subject to a 25% tariff and could also be subject to an additional 25% tariff stacked on top of that because of an executive order Trump signed Wednesday that seeks to penalize India for purchasing oil from Russia. That second tariff is slated to take effect on August 27.
Modi has been reluctant to cave to US demands to open up its economy to international competitors and halt Russian oil purchases.
Some background: India's agricultural sector is a vital part of its economy, and concerns over fair prices have fueled mass protests, presenting a major challenge to Modi's government. In 2020 and 2021, Indian farmers demonstrated against three controversial farming laws, causing the legislations to be repealed.
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Title: More secondary sanctions for Russian oil buyers are coming, Trump says
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US President Donald Trump warned Wednesday that more punishment was coming for countries buying Russian energy products after slapping a 25% tariff on India that is supposed to go into effect Thursday.
'You're going to see a lot more. So this is a taste,' he said in the Oval Office. 'You're going to see a lot more. You're going to see so much secondary sanctions.'
The move is part of Trump's high-stakes effort to cripple Russia's economy over its war in Ukraine. He had set a Friday deadline for Russian President Vladimir Putin to make peace before imposing that economic punishment.
Previous rounds of US sanctions, including under Trump's predecessor Joe Biden, knocked Russia's economy but have not stopped Putin's war machine.
The strategy marks an escalation in Trump's use of tariffs, his signature second-term weapon. He has previously used them to pursue a sprawling agenda, from protecting US manufacturing to pressuring foreign governments on policy.
These 'secondary tariffs,' however, are being used to force third-party nations into a choice: sever ties with a US adversary or risk further penalties.
The top purchaser of Russian energy is China, with which Trump is working to negotiate a new trade deal. US officials have described significant progress on those talks. But Trump did not rule out applying the new secondary sanctions on Beijing, despite the potential for scuttling the trade discussions.
'One of them could be China,' he said. 'It may happen. I don't know. I can't tell you yet.'
Read the full story.
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Title: Asian markets resilient as Trump's unprecedented tariffs take effect
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Markets across Asia showed resilience in early trading as the Trump administration's unprecedented worldwide tariffs took effect Thursday.
Leading benchmark indexes in Japan (Nikkei) and South Korea (Kospi), countries that have both recently reached agreements with the US, saw moderate gains after opening Thursday.
In China — which has yet to secure an extension to a trade truce with the US due to expire on August 12 — the Shanghai Composite saw slight gains, while the Shenzhen Composite saw a dip, after President Donald Trump floated the idea of additional tariffs focused on Russian crude oil purchases.
On Wednesday, the White House imposed an additional 25% tariff on most Indian imports due to its purchase of Russian energy.
Elsewhere, Hong Kong's Hang Seng saw gains while Australia's S&P/ASX 200 recorded slight declines.