Washington, United States – US President Donald Trump imposed large tariffs on exports from dozens of trading partners, including Canada, Brazil, India and Taiwan, ahead of the deadline to reach a trade agreement on Friday, in an effort to move forward with plans to reorganize the global economy.
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Trump set rates that include tariffs of 35% on many goods from Canada, 50% for Brazil, 25% for India, 20% for Taiwan, and 39% for Switzerland, according to a presidential executive order.
The United States announced higher import tariffs of between 10% and 41% starting seven days on 69 trading partners as the deadline approaches at 12:01 a.m. EST.
Some countries have reached agreements to reduce tariffs, while others have not had the opportunity to negotiate. Trump has excluded some goods that will be shipped over the next week.
A 10% US import tax will be imposed on goods from all other unlisted countries. Trump had previously stated that this percentage might be higher. The administration also indicated that more trade deals are being prepared, as part of its efforts to fill the trade deficit and strengthen local factories.
The Republican president has exploited emergency powers, pressured foreign leaders, and moved forward with his trade policies that sparked market selling when they were first announced in April.
On Thursday, US Federal Court of Appeals judges questioned Trump’s use of emergency powers to justify imposing tariffs of up to 50% on almost all of his trading partners.
Trump invoked the International Emergency Economic Powers Act of 1977 to declare a state of emergency due to the growing U.S. trade deficit, the imposition of “mutual” tariffs, and a separate fentanyl emergency.
Asian stocks headed for their worst week since April on Friday after the tariffs were announced.
European stocks hit a three-week low on Friday, with investors focused on the impact of new tariffs. The European STOXX 600 index (STOXX) fell by about 1% in early trading, down for the third session in a row, and on its way to ending the week in red.
Trump’s tariffs come amid growing signs that they are beginning to raise the prices of consumer goods.
U.S. Commerce Department data released Thursday showed that prices of home furnishings and durable household equipment jumped 1.3% in June, the largest increase since March 2022.
Prices of recreational goods and vehicles rose 0.9%, the largest rate since February 2024. Clothing and footwear prices rose by 0.4%.
Switzerland, Taiwan, South Africa
Switzerland said it would seek a “negotiated solution” with the United States, while Taiwan President Lai Chinen-ti said the new 20% tariff rate on the island was “temporary” and that he expected to reach a lower figure.
South African Trade Minister Parks Tao said he is seeking “real and practical interventions” to defend jobs and the economy in the face of the 30% US tariffs it faces.
Trump’s order stated that some trading partners, “despite their participation in the negotiations, have offered conditions that, in my view, do not adequately address imbalances in our trade relations or fail to align adequately with the United States on economic and national security issues”.
Canada, Mexico, India
Trump issued a separate order to Canada raising the rate on Canadian goods subject to fentanyl tariffs to 35%, from 25% previously, saying Canada had “failed to cooperate” in reducing illicit drug flows to the United States.
The high tariffs on Canadian goods contrasted sharply with Trump’s decision to give Mexico a 90-day reprieve from the 30% higher tariffs on many goods to allow time to negotiate a broader trade agreement.
Canadian Prime Minister Mark Carney said he was disappointed by Trump’s decision and pledged to take action to protect Canadian jobs and diversify exports.
“While we will continue to negotiate with the United States on our trade relations, the Canadian government is fully focused on what we can control: building a strong Canada,” he said in a post on X.
Mexico’s extension avoids imposing 30% tariffs on most Mexican non-automotive and non-metallic goods in accordance with the US-Mexico-Canada trade agreement, and came after a phone call on Thursday between Trump and Mexican President Claudia Sheinbaum.
Brazil, China
US President Donald Trump on Wednesday imposed 50% tariffs on Brazilian exports, escalating his battle with the country over its prosecution of former President Jair Bolsonaro, but softened the blow by excluding sectors such as aircraft, energy and orange juice from the heavier tariffs.
Meanwhile, China faces an August 12 deadline to reach a permanent tariff agreement with the Trump administration, after Beijing and Washington reached preliminary agreements in May and June to end reciprocal tariffs and rare earth metal cutting.
A US official told reporters that they were making progress towards reaching an agreement.
