Higher US Tariffs Take Effect On Dozens Of Economies
As an executive order signed last week by Trump took effect, US duties rose from 10 percent to levels between 15 percent and 41 percent for a list of trading partners.
Many products from economies like the European Union, Japan and South Korea now face a 15-percent tariff, even with deals struck with Washington to avert steeper threatened levies.
But others like India face a 25-percent duty -- to be doubled in three weeks -- while Syria, Myanmar and Laos face staggering levels at either 40 percent or 41 percent.
The latest tariff wave of "reciprocal" duties, aimed at addressing trade practices Washington deems unfair, broadens the measures Trump has imposed since returning to the presidency.
But these higher tariffs do not apply to sector-specific imports that are separately targeted, such as steel, autos, pharmaceuticals and chips.
Trump said Wednesday he planned a 100-percent tariff on semiconductors -- though Taipei said chipmaking giant TSMC would be exempt as it has US factories.
Even so, companies and industry groups warn that the new levies will severely hurt smaller American businesses. Economists caution that they could fuel inflation and weigh on growth in the longer haul.
While some experts argue that the effects on prices will be one-off, others believe the jury is still out.
With the dust settling on countries' tariff levels, at least for now, Georgetown University professor Marc Busch expects US businesses to pass along more of the bill to consumers.
An earlier 90-day pause in these higher "reciprocal" tariffs gave importers time to stock up, he said.
But although the wait-and-see strategy led businesses to absorb more of the tariff burden initially, inventories are depleting and it is unlikely they will do this indefinitely, he told AFP.
"With back-to-school shopping just weeks away, this will matter politically," said Busch, an international trade policy expert.
The tariff order taking effect Thursday also leaves lingering questions for partners that have negotiated deals with Trump recently.
Tokyo and Washington, for example, appear at odds over key details of their tariffs pact, such as when lower levies on Japanese cars will take place.
Washington has yet to provide a date for reduced auto tariffs to take effect for Japan, the EU and South Korea. Generally, US auto imports now face a 25-percent duty under a sector-specific order.
A White House official told AFP that Japan's 15-percent tariff stacks atop of existing duties, despite Tokyo's expectations of some concessions.
Meanwhile, the EU continues to seek a carveout from tariffs for its key wine industry.
In a recent industry letter addressed to Trump, the US Wine Trade Alliance and others urged the sector's exclusion from tariffs, saying: "Wine sales account for up to 60 percent of gross margins of full-service restaurants."
Trump is also not letting up in his trade wars.
He opened a new front Wednesday by doubling planned duties on Indian goods to 50 percent, citing New Delhi's continued purchase of Russian oil. But the additional 25-percent duty would take effect in three weeks.
Trump's order for added India duties also threatened penalties on other countries that "directly or indirectly" import Russian oil, a key revenue source for Moscow's war in Ukraine.
Existing exemptions still apply, with pharmaceuticals and smartphones excluded for now.
And Trump has separately targeted Brazil over the trial of his right-wing ally, former president Jair Bolsonaro, who is accused of planning a coup.
US tariffs on various Brazilian goods surged from 10 percent to 50 percent Wednesday, but broad exemptions including for orange juice and civil aircraft are seen as softening the blow.
Still, key products like Brazilian coffee, beef and sugar are hit.
Many of Trump's sweeping tariffs face legal challenges over his use of emergency economic powers, with the cases likely to ultimately reach the US Supreme Court. An order by President Donald Trump, raising tariffs on dozens of trading partners, took effect Thursday AFP US companies and industry groups warn that President Donald Trump's new tariffs could severely hurt smaller American businesses AFP
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Int'l Business Times
33 minutes ago
- Int'l Business Times
Australia To Recognise Palestinian State
Australia will recognise a Palestinian state at the UN General Assembly in September, Prime Minister Anthony Albanese said Monday. "A two-state solution is humanity's best hope to break the cycle of violence in the Middle East and to bring an end to the conflict, suffering and starvation in Gaza," he told reporters in Canberra. "Until Israeli and Palestinian statehood is permanent, peace can only be temporary. "Australia will recognise the right of the Palestinian people to a state of their own. We will work with the international community to make this right a reality." The decision follows a push from several countries, including France, Britain and Canada, to recognise statehood for the Palestinians after Israel launched a war on Gaza nearly two years ago in response to the Hamas attacks. "There is a moment of opportunity here, and Australia will work with the international community to seize it," Albanese added. He said that Australia's decision was predicated on reassurances from the Palestinian Authority that there would be "no role for the terrorists of Hamas in any future Palestinian state". The PA, however, does not have a presence in Gaza, which has been governed by Hamas for nearly two decades. Following Australia's announcement, Israel's embassy in Canberra told AFP the ambassador was "unavailable" to comment. Just hours earlier, Israeli Prime Minister Benjamin Netanyahu criticised international calls to recognise Palestinian statehood, saying it would "not bring peace, it will bring war". "To have European countries and Australia march into that rabbit hole, just like that, fall right into it and buy this canard is disappointing, and I think it's actually shameful," he said. International concern is growing about the plight of the more than two million Palestinians in the Gaza Strip, where the fighting has triggered a dire humanitarian crisis and warnings of mass starvation. Albanese further criticised the Israeli government Monday and said it continued to defy "international law and deny sufficient aid". As the global movement to recognise Palestine grows, New Zealand's Foreign Minister Winston Peters said his country would carefully consider whether to do the same over the next month. He added that New Zealand's recognition of a Palestinian state is a "matter of when, not if". Israel's offensive has killed at least 61,430 Palestinians, according to Gaza's health ministry, figures the United Nations says are reliable. Hamas's 2023 attack on Israel, which triggered the war, resulted in the deaths of 1,219 people, according to an AFP tally based on official figures. Prime Minister Anthony Albanese said Australia will recognise Palestinian statehood at the UN General Assembly in September AFP
Int'l Business Times
2 hours ago
- Int'l Business Times
Asian Markets Waver To Start Key Week For Trade, US Data
Asian markets mostly rose Monday as investors eyed a week dominated by speculation about US inflation data and a prolonged pause for Washington's tariffs on China. Observers expect Donald Trump to announce an extension of a trade war truce reached with China last month, ahead of a 90-day deadline due to expire Tuesday. Meanwhile, a key US consumer price index report is set up for Tuesday and could shape future policy decisions by the Federal Reserve, which has come under increasing pressure from the president to cut rates. Investors have ramped up their bets on the central bank lowering borrowing costs at its next meeting in September following a series of reports -- particularly on jobs -- indicating the world's number one economy was slowing. Also in view is a high-stakes summit between Trump and Russian counterpart Vladimir Putin on Friday in Alaska, which could pave the way for a deal to resolve the Ukraine war that involves an easing of tough sanctions on Moscow. In early trade, Hong Kong, Shanghai, Sydney, Seoul, Wellington, Taipei and Jakarta all rose though there were losses in Singapore and Manila. Tokyo was closed for a public holiday. With Tuesday's US-China tariff truce deadline looming, investors are bullish about the prospects of another extension. "The market has fully subscribed to the high probability of the tariff truce being rolled over for another 90 days" said Chris Weston of Pepperstone. "As such, unless diplomatic talks fully break down, news of extension shouldn't move markets too intently," he added. Gold futures edged down after hitting a record high Friday following reports of an unexpected tariff on the precious metal. Despite protracted uncertainty about trade, investors remain optimistic about artificial intelligence -- an area of fierce competition between Beijing and Washington. Reports Monday said that US chip giants Nvidia and Advanced Micro Devices (AMD) had agreed to pay Washington 15 percent of their revenue from selling AI chips to China. Investors are betting that AI will transform the global economy, and last month Nvidia -- the world's leading semiconductor producer -- became the first company ever to hit $4 trillion in market value. Hong Kong - Hang Seng Index: UP 0.2 percent at 24,896.02 Shanghai - Composite: UP 0.3 percent at 3,644.73 Tokyo - Nikkei 225: Closed for a holiday Pound/dollar: UP at $1.3457 from $1.3451 on Friday Euro/dollar: UP at $1.1667 from $1.1643 Dollar/yen: DOWN at 147.56 yen from 147.79 yen Euro/pound: UP at 86.70 pence from 86.54 pence West Texas Intermediate: DOWN 0.6 percent at $63.50 per barrel Brent North Sea Crude: DOWN 0.5 percent at $66.27 per barrel New York - Dow: UP 0.5 percent at 44,175.61 (close) London - FTSE 100: DOWN 0.1 percent at 9,095.73 (close)
Int'l Business Times
6 hours ago
- Int'l Business Times
Trump Says To Move Homeless People 'Far' From Washington
President Donald Trump said Sunday that homeless people must be moved "far" from Washington, after days of musing about taking federal control of the US capital where he has falsely suggested crime is rising. The Republican billionaire has announced a press conference for Monday in which he is expected to reveal his plans for Washington -- which is run by the locally elected government of the District of Columbia under congressional oversight. It is an arrangement Trump has long publicly chafed at. He has threatened to federalize the city and give the White House the final say in how it is run. "I'm going to make our Capital safer and more beautiful than it ever was before," the president posted on his Truth Social platform Sunday. "The Homeless have to move out, IMMEDIATELY. We will give you places to stay, but FAR from the Capital," he continued, adding that criminals in the city would be swiftly imprisoned. "It's all going to happen very fast," he said. Washington is ranked 15th on a list of major US cities by homeless population, according to government statistics from last year. While thousands of people spend each night in shelters or on the streets, the figure are down from pre-pandemic levels. Earlier this week Trump also threatened to deploy the National Guard as part of a crackdown on what he falsely says is rising crime in Washington. Violent crime in the capital fell in the first half of 2025 by 26 percent compared with a year earlier, police statistics show. The city's crime rates in 2024 were already their lowest in three decades, according to figures produced by the Justice Department before Trump took office. "We are not experiencing a crime spike," Washington Mayor Muriel Bowser said Sunday on MSNBC. While the mayor, a Democrat, was not critical of Trump in her remarks, she said "any comparison to a war torn country is hyperbolic and false." Trump's threat to send in the National Guard comes weeks after he deployed California's military reserve force into Los Angeles to quell protests over immigration raids, despite objections from local leaders and law enforcement. The president has frequently mused about using the military to control America's cities, many of which are under Democratic control and hostile to his nationalist impulses.
