Live Updates: White House Announces Sweeping New Tariffs for Much of the World

New York Times

6 days ago

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Hours before President Trump's long-threatened tariffs on dozens of countries were set to take effect early Friday, the White House took the next step in its plan to remake global trade by releasing new rates for more than five dozen U.S. trade partners.
The order said that the tariff rates, ranging from 10 to 41 percent, would go into effect for 67 countries, Taiwan and the European Union at 12:01 a.m. on Aug. 7. Syria, Laos and Myanmar were handed among the steepest rates of 40 to 41 percent. All countries not issued new tariff rates would be subject to a base line 10 percent rate, the order said.
Thursday evening's announcement served as the latest unpredictable move from the Trump administration as it seeks to follow through on a campaign promise to transform a global trading system long criticized by the president as unfair.
Aside from the new tariff rates set forth for scores of countries, the order also establishes a 40 percent tariff on anything that Customs and Border Protection determines has been 'transshipped' to avoid higher duties on their country of origin. That provision is largely aimed at goods made in China that are shipped to another country and repackaged, or otherwise superficially changed.
In a separate tranche of policies, the Trump administration and China this week agreed to work toward a continued cease-fire in their battles over trade, likely pushing any possible deals between the countries until no earlier than the fall.
Another separate order issued Thursday evening increased Canada's tariff rate to 35 percent from 25 percent starting on Aug. 1. The White House statement said that Canada had 'retaliated' against the United States and 'failed to cooperate' in curbing the trade of fentanyl. The new taxes will not be charged on exports that meet the U.S., Canada, Mexico Free Trade Agreement's definition of North American products.
The Trump administration's moves are expected to trigger another wave of uncertainty for U.S. trade partners, which now have a week to negotiate lower tariff rates before the new Aug. 7 deadline. Japan and South Korea, which hastened to secure trade agreements with the United States ahead of the prior Aug. 1 deadline, received their negotiated 15 percent rate in Thursday's order.
In addition to the countries that have reached trade agreements with the United States, several are 'on the verge' of reaching deals, according to Mr. Trump's executive order.
Officials from Taiwan are among those talking to the Trump administration. Its negotiators have spent the past two weeks in Washington. In a Facebook post on Friday morning in Asia, President Lai Ching-te described the new 20 percent tariff rate on Taiwan as 'temporary.'
India received 25 percent, as President Trump's previously warm relationship with Indian prime minister Narendra Modi has soured. Mr. Trump has in recent days inveighed against India's own high tariffs, as well as its purchases of Russian oil. India's largest imports to the United States are electronics and pharmaceuticals.
Mr. Trump has vowed to use stiff import taxes to rebalance American trade by reducing imports into the United States and increasing its exports. The president and his advisers believe that tariffs will bolster the American manufacturing sector and create more prosperity, while filling government coffers.
Economists remain skeptical that the approach will work as Mr. Trump intends. While tariffs can protect nascent industries, modern manufacturing often depends on imported parts and materials that are difficult if not impossible to produce domestically.
Although importers have been absorbing tariffs imposed over the last several months, they are now spilling over into higher prices for consumers, slowing growth in the United States and globally. Consumer price data released on Thursday showed inflation picked up in June, the latest sign that tariffs were affecting consumer costs.
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