Trump orders tariffs on dozens of countries, to take effect in a week
However, in a minor reprieve that opens the door to further negotiations, the White House said these measures will take effect in a week, not Friday as previously expected.
The tariffs are a demonstration of raw economic power that Trump sees putting US exporters in a stronger position while encouraging domestic manufacturing by keeping out foreign imports.
But the muscular approach has raised fears of inflation and other economic fallout in the world's biggest economy.
And with questions hanging over the effectiveness of bilateral trade deals already struck, including with the European Union and Japan, the outcome of Trump's plan remained uncertain.
Trump's new measures in an executive order raises duties on nearly 70 economies, from a current 10 per cent level imposed in April when he unleashed "reciprocal" tariffs citing unfair trade practices.
The steeper levels, varying by trading partner, go as high as 41 per cent.
Trump also adjusted some tariff levels threatened in April, with Switzerland now facing a higher 39 per cent duty and Thailand a lower 19 per cent rate.
The tariff on Taiwanese products was revised down to 20 per cent, but its President Lai Ching-te vowed to seek an even lower level.
Trump separately hiked tariffs on Canadian goods to 35 per cent, though indicating in an NBC interview he was open to further talks. Canada and Mexico face a separate tariff regime. But exemptions remain for imports entering the United States under a North American trade pact.
"No doubt about it, the executive order and related agreements concluded over the past few months tears up the trade rule book that has governed international trade since World War II," said Wendy Cutler, senior vice president of the Asia Society Policy Institute.
"Whether our partners can preserve it without the United States is an open question," she added.
Frantic negotiations
The elevated duties come after Washington twice postponed their implementation amid a frantic series of negotiations, alongside announcements of new duties and deals with partners.
Just Thursday, Trump announced he was delaying a tariff hike on Mexican products, keeping levels at 25 per cent with existing exemptions. The 90-day postponement followed talks with his counterpart Claudia Sheinbaum.
The 79-year-old Republican has made tariffs core to his protectionist brand of hard-right politics. On Thursday, he claimed that the US economy had "no chance of survival or success" without tariffs.
But the latest salvo came amid legal challenges against Trump's use of emergency economic powers. After a lower court said the president exceeded his authority, the US Court of Appeals heard arguments Thursday in cases against Trump's blanket tariffs targeting different countries.
While Trump has touted a surge in customs revenues this year, economists warn the duties could fuel inflation.
Proponents of his policy argue their impact will be one-off, but analysts are awaiting further data to gauge for more persistent effects.
China remains a question mark
Those who managed to strike deals with Washington to avert steeper threatened levies were Vietnam, Japan, Indonesia, the Philippines, South Korea and the EU.
Britain also reached a pact with the United States, although it was not originally targeted by higher "reciprocal" tariffs.
For Canada, transshipped goods to evade its 35 per cent duty would face even higher levels, said a White House fact sheet. Its trade ties with Washington faced renewed threat after Prime Minister Mark Carney announced plans to recognise a Palestinian state at the UN General Assembly in September.
Trump's latest order however appeared to raise tariffs on several countries not initially targeted in April, to 15 per cent, including Ecuador, Ghana and Iceland.
Notably excluded from the drama was China, which faces an August 12 deadline instead, when duties could bounce back to higher levels.
Washington and Beijing at one point brought tit-for-tat tariffs to triple-digit levels, but both countries have agreed to temporarily lower these duties and are working to extend their truce.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Gulf Today
33 minutes ago
- Gulf Today
Thailand returns Cambodian soldiers ahead of border talks
Thailand's army sent home two Cambodian soldiers from a group of 20 on Friday, ahead of a key meeting in Malaysia next week where defence ministers and military commanders will hold talks aimed at maintaining a ceasefire along their disputed border. Long-simmering tensions on the Thai-Cambodian border exploded into clashes last week, including exchanges of artillery fire and jet fighter sorties, the worst fighting between the Southeast Asian neighbours in over a decade. The clashes claimed at least 43 lives and left over 300,000 people displaced. A truce was achieved on Monday, following a push by Malaysia and phone calls from USPresident Trump who threatened to hold off tariff negotiations with both countries until fighting stopped. Thailand and Cambodia previously faced tariffs of 36% for sending goods to the US, their largest export markets. Following further negotiations, they will now pay a 19% tariff, the White House announced on Friday. In Bangkok, Thai government spokesperson Jirayu Houngsub told reporters on Friday that two Cambodian soldiers had been sent back, and the remaining 18 were being processed for violating immigration law. 'The Cambodian soldiers intruded on Thai territory and the army took them into custody, treating them based on humanitarian principles,' he said. In a statement, the Cambodian defence ministry asked Thailand to return all the detained soldiers. 'Cambodia is actively engaging in negotiations to secure their release, and reiterates its firm call for their immediate and unconditional release in accordance with the international humanitarian law,' a ministry spokesperson said. Defence ministers and military leaders from both sides, who were previously scheduled to meet in the Cambodian capital next week, will now hold talks in Malaysia, after Thailand sought a neutral venue for the meeting. The General Border Committee, which coordinates on border security, ceasefires, and troop deployments, will meet between Aug.4-7, Thai Acting Defence Minister Nattaphon Narkphanit told reporters. 'Defence attachés from other ASEAN countries will be invited as well as the defence attachés from the US and China,' a Malaysian government spokesperson told reporters, referring to the Southeast Asian regional bloc that the country currently chairs. Thailand and Cambodia have for decades claimed jurisdiction over undemarcated points along their 817-km land border, with ownership of several ancient temples at the centre of disputes. Meanwhile, Cambodia will nominate President Donald Trump for the Nobel Peace Prize, its deputy prime minister said on Friday, following his direct intervention in halting the Southeast Asian country's recent border conflict with Thailand. Asked via text message to confirm Cambodia's plan to nominate Trump for the prize, Chanthol responded, 'yes.' Speaking to reporters earlier in the capital, Phnom Penh, Chanthol thanked Trump for bringing peace and said he deserved to be nominated for the prize, the highest-profile international award given to an individual or organisation deemed to have done the most to 'advance fellowship between nations.' Pakistan said in June that it would recommend Trump for the Nobel Peace Prize for his work in helping to resolve a conflict with India, and Israeli Prime Minister Benjamin Netanyahu said last month he had nominated Trump for the award. It was a call by Trump last week that broke a deadlock in efforts to end the heaviest fighting between Thailand and Cambodia in over a decade, leading to a ceasefire negotiated in Malaysia on Monday. Following the truce announcement, White House spokeswoman Karoline Leavitt said in a post on X that Trump made it happen. 'Give him the Nobel Peace Prize!,' she said. 'We acknowledge his great efforts for peace,' said Chanthol, also Cambodia's top trade negotiator, adding that his country was also grateful for a reduced tariff rate of 19%. Agencies
Khaleej Times
an hour ago
- Khaleej Times
Brazilians burn Trump effigies as tariffs spark anger
Brazilians set fire to effigies of Donald Trump in protests across several cities Friday, denouncing the US president's politically motivated trade tariffs. Anti-Trump protests were held in Brasilia, Sao Paulo and Rio de Janeiro, a sign of souring ties between two of the Americas' largest economies. The demonstrations were modestly attended, but reflected broad anger at Trump's decision to put a 50 per cent tariff on Brazilian exports and to sanction a top judge. The mercurial US President has openly admitted he is punishing Brazil for prosecuting his political ally, ex-president Jair Bolsonaro. The far-right Brazilian firebrand is currently on trial for plotting a coup after failing to win reelection in 2022. Bolsonaro supporters stormed Brazil's congress in January 2023, ransacking the chambers and attacking police, in scenes reminiscent of Trump supporters' attack on the US Capitol two years before. A Brazilian general has given evidence that the alleged plotters also wanted to assassinate leftist President Luiz Inacio Lula da Silva and several other public officials. Trump has called the trial a "witch hunt" and his Treasury Department has sanctioned Supreme Court Justice Alexandre de Moraes in response. Trump also signed an executive order slapping 50 percent tariffs on Brazilian imports, citing Bolsonaro's "politically motivated persecution." The tariff is due to enter into force on August 6. Moraes, in a rare public address, said Friday he pledged to "continue working" despite a US travel ban and assets freeze. "This Court, the Office of the Attorney General, and the Federal Police will not bow to these threats," he said during a court session. And he vowed the court would remain "absolutely uncompromising in defending national sovereignty and its commitment to democracy." Moraes has repeatedly taken aim at the Brazilian far-right and its figurehead Bolsonaro, as well as tech titan Elon Musk, over online disinformation. He is also the presiding judge in the coup trial of Bolsonaro, who risks a 40-year prison sentence. Secretary of State Marco Rubio has accused Moraes of "serious human rights abuses, including arbitrary detention involving flagrant denials of fair trial guarantees and infringing on the freedom of expression." Moraes recently ordered Bolsonaro to wear an electronic ankle bracelet pending the conclusion of his trial, and barred him from leaving his home at night or using social media pending an investigation into potential obstruction of justice.
Dubai Eye
an hour ago
- Dubai Eye
Trump fires lead official on economic data
President Donald Trump on Friday fired a top Labor Department official on the heels of a market-shocking weak scorecard of the US job market, accusing her of manipulating the figures and adding to already growing concerns about the quality of economic data published by the federal government. In a second surprise economic policy development, the door for Trump to make an imprint on a Federal Reserve with which he clashes almost daily for not lowering interest rates opened much earlier than anticipated when Fed Governor Adriana Kugler unexpectedly announced her resignation on Friday afternoon. The two developments further rattled a stock market already reeling from his latest barrage of tariff announcements and the weak jobs data. The benchmark S&P 500 Index .SPX sank 1.6 per cent in its largest daily drop in more than two months. Trump accused Erika McEntarfer, appointed by former President Joe Biden, of faking the jobs numbers. There is no evidence to back Trump's claims of data manipulation by the Bureau of Labor Statistics, the statistical agency that compiles the closely watched employment report as well as consumer and producer price data. A representative for the BLS did not respond to a request for comment. Friday began with BLS reporting the US economy created only 73,000 jobs in July, but more stunning were net downward revisions showing 258,000 fewer jobs had been created in May and June than previously reported. "We need accurate Jobs Numbers. I have directed my Team to fire this Biden Political Appointee, IMMEDIATELY. She will be replaced with someone much more competent and qualified," Trump said in a post on Truth Social. DATA CONCERNS A Trump administration official who requested anonymity said that while all economic data is noisy, the White House has been dissatisfied with how large the revisions have been in the recent data and issues with lower survey responses. The problem started during COVID and has not been addressed in the years since. "There are these underlying problems that have been festering here for years now that have not been rectified," the person said. "The markets and companies and the government need accurate data, and like, we just weren't getting that," the official said. The BLS has already reduced the sample collection for consumer price data as well as the producer price report, citing resource constraints. The government surveys about 121,000 businesses and government agencies, representing approximately 631,000 individual worksites for the employment report. The response rate has declined from 80.3 per cent in October 2020 to about 67.1 per cent in July, BLS data shows. A Reuters poll last month found 89 of 100 top policy experts had at least some worries about the quality of US economic data, with most also concerned that authorities are not addressing the issue urgently enough. In addition to the concerns over job market data, headcount reductions at BLS have resulted in it scaling back the scope of data collection for the Consumer Price Index, one of the most important gauges of US inflation, watched by investors and policymakers worldwide. Trump's move fed into concerns that politics may influence data collection and publication. "Politicizing economic statistics is a self-defeating act," said Michael Madowitz, principal economist at the Roosevelt Institute's Roosevelt Forward. "Credibility is far easier to lose than rebuild, and the credibility of America's economic data is the foundation on which we've built the strongest economy in the world. Blinding the public about the state of the economy has a long track record, and it never ends well." FED CHANGE SOONER THAN EXPECTED Meanwhile, Kugler's surprise decision to leave the Fed at the end of next week presents Trump an earlier-than-expected opportunity to install a potential successor to Fed Chair Jerome Powell on the central bank's Board of Governors. Trump has threatened to fire Powell repeatedly because the Fed chief has overseen a policymaking body that has not cut interest rates as Trump has demanded. Powell's term expires next May, although he could remain on the Fed board until January 31, 2028, if he chooses. Trump will now get to select a Fed governor to replace Kugler and finish out her term, which expires on January 31, 2026. A governor filling an unexpired term may then be reappointed to a full 14-year term. Some speculation has centered on the idea Trump might pick a potential future chair to fill that slot as a holding place. Leading candidates for the next Fed chair include Trump economic adviser Kevin Hassett, Treasury Secretary Scott Bessent, former Fed Governor Kevin Warsh and Fed Governor Chris Waller, a Trump appointee who this week dissented with the central bank's decision to keep rates on hold, saying he preferred to start lowering them now. Trump, as he was leaving the White House to spend the weekend at his Bedminster, New Jersey, estate, said he was happy to have the open slot to fill. "I would not read any political motivation into what [Kugler is] doing, although the consequence of what she's doing is she's calling Trump's bluff," said Derek Tang, an analyst at LH Meyer, a research firm. "She's putting the ball in his court and saying, look, you're putting so much pressure on the Fed, and you want some control over nominees, well, here's a slot."
