Trump tariffs live updates: Countries rush to make deals to avoid new levies as world economy braces for impact

Concerns about the immediate enforcement of stricter U.S. trade penalties on goods rerouted through third countries have eased, according to three individuals in Southeast Asia familiar with the matter, who spoke to Reuters.

Southeast Asian nations, including Vietnam and Thailand, have been specifically singled out by White House officials for their alleged role in facilitating the transshipment of Chinese goods to the U.S. Without such rerouting, these goods would face substantially higher tariffs if shipped directly from China.

The Trump administration started imposing tariffs on goods from dozens of countries on Thursday. An executive order stated that products identified as having been illegally rerouted to conceal their origin would face an additional 40 percent duty. However, the order did not specify what exactly constitutes transshipment.

Currently, U.S. imports from Southeast Asia’s largest economies, which heavily depend on exports, are subject to tariff rates of around 19 percent. This is a significant reduction from previously threatened rates.

Existing U.S. customs guidelines specify that goods from countries without free trade agreements with the U.S., such as those in Southeast Asia, can be labeled as originating from the country where they undergo a “substantial transformation” of components, even if those parts are entirely sourced from another country like China.

With no new U.S. guidance on rules of origin or a clear definition of transshipment, some officials in Southeast Asia have advised exporters that current rules still apply. This effectively limits transshipment cases to illegal activities, such as using forged export certificates or unlawfully obtained documents.

Trade consultants have described the rules as vague, advising clients, even before the latest wave of U.S. tariffs, to ensure at least 40 percent local content in their exports to the U.S. “to be on the safe side,” one consultant noted.

Commenting on the 35 percent tariff on imported Canadian goods paid for by American buyers, Ontario Premier Doug Ford tells Wolf Blitzer on CNN: “President Trump wants to hurt the American people, and that’s exactly what he’s doing.”

In 2024, $413 billion of Canadian goods were shipped to the U.S.

President Donald Trump ordered the Commerce Department to re-run the count of the U.S. population that took place five years ago, while excluding any migrants in the U.S. from the total.

Writing Thursday on Truth Social, Trump said he’d asked the department, which oversees the U.S. Census Bureau, to “immediately” start what he called “a new and highly accurate CENSUS based on modern day facts and figures,” making use of “the results and information gained from the Presidential Election of 2024.”

Andrew Feinberg reports from Washington, D.C.

Alexander Butler looks at which countries were affected by which rate.

Wall Street saw early gains on Wednesday, initially buoyed by hopes that major technology firms might avoid President Donald Trump’s latest tariffs on chip imports, though this optimism soon gave way to a more mixed market sentiment.

Apple’s shares rose 2.4 per cent, building on a 5.1 per cent increase from the previous session, after Trump announced the iPhone maker would invest an additional $100 billion in the US, bringing its total commitment to $600 billion over the next four years. The president also unveiled a near 100 percent tariff on semiconductor imports, but stated it would not apply to companies manufacturing in the U.S. or those committed to doing so.

However, these early gains were soon tempered by a shift in market sentiment. By 10:31 a.m. ET, the Dow Jones Industrial Average was down 137 points, or 0.34 percent, at 44,045, while the S&P 500 gained 7.94 points, or 0.13 percent, to 6,353, and the Nasdaq Composite rose 138 points, or 0.65 percent, to 21,300.

Broader tariffs, ranging from 10 to 50 percent, imposed by Trump on dozens of trading partners, came into effect on Thursday.

New signs of a weakening labour market, particularly following a disappointing July payrolls report, have fuelled speculation that the Federal Reserve could soon begin a rate-cutting cycle. Underscoring these jitters, new data revealed jobless claims reached 226,000 for the week of August 2, exceeding economists’ forecasts of 221,000. Traders are now almost fully anticipating a September rate cut.

Investors are also closely watching for Trump’s interim replacement for Federal Reserve Governor Adriana Kugler in the coming days, amid expectations that the nominee will be a policy dove likely to favour lowering interest rates.

Kugler’s resignation creates a vacancy on the seven-member Fed Board led by Chair Jerome Powell, whom Trump has repeatedly criticised for not cutting borrowing costs. Powell’s tenure is set to conclude in May.

The new import tax, effective 21 days after August 7, will raise duties on some Indian exports to as high as 50 percent. However, three weeks would allow India and Russia the opportunity to negotiate with the US administration on the import taxes.

Experts say this marks a low point in US-India relations, which could harm the gains the two sides have worked hard to build over the past few years.

Alisha Rahaman Sarkar reports.

President Donald Trump has called for the immediate resignation of Intel’s new chief executive, Lip-Bu Tan, labelling him “highly conflicted” due to his alleged ties to Chinese firms. The demand raises significant questions about the future direction of the struggling American chip giant.

Writing on Truth Social on Thursday morning, Trump stated: “The CEO of INTEL is highly CONFLICTED and must resign, immediately. There is no other solution to this problem. Thank you for your attention to this problem!”

The controversy follows an exclusive Reuters report in April, which revealed that Tan, either personally or through venture funds he founded or operates, had invested at least $200 million (£158 million) in hundreds of Chinese advanced manufacturing and chip companies. Some of these firms are reportedly linked to the Chinese military.

Trump’s comments came a day after Reuters first reported that Republican Senator Tom Cotton had written to Intel’s board chair, seeking answers regarding Tan’s connections to Chinese entities and a recent criminal case involving his former firm, Cadence Design.

The outspoken demand from Trump, reiterating “There is no other solution to this problem,” sent shares of Intel down by approximately 2 percent in early trading on Wall Street.

A change in leadership at Intel could intensify pressure on the company, which is a cornerstone of US efforts to bolster domestic chipmaking. Last year, Intel secured $8 billion (£6.3 billion) in subsidies, the largest allocation under the 2022 CHIPS and Science Act, to establish new fabrication plants in Ohio and other states.

With reporting from Reuters

Switzerland has vowed to continue negotiations with the United States after the implementation of a 39 percent import levy on Swiss goods, a measure that threatens to severely impact the nation’s export-driven economy.

The substantial tariff, among the highest imposed under Donald Trump’s global trade reset, took effect at midnight Washington time, following an unsuccessful eleventh-hour attempt by Swiss officials to secure a more favorable agreement. This levy is poised to significantly restrict the small alpine nation’s access to the US market, a crucial destination for high-value exports such as watches from Swatch, Rolex, and Patek Philippe, alongside premium cheeses and chocolates. While the US is also the largest market for Swiss pharmaceuticals, valued at $35 billion last year from companies like Roche and Novartis, these exports are not currently subject to the 39 percent rate.

“For the affected sectors, companies, and their employees, this is an extraordinarily difficult situation,” stated Swiss President Karin Keller-Sutter to reporters after an urgent meeting of the seven-member Federal Council, Switzerland’s governing cabinet.

Keller-Sutter’s recent trip to Washington concluded without a deal, during which she reportedly did not meet with Trump or any of his senior trade representatives. Her proposal for a 10 percent tariff rate was rejected by U.S. officials.

Despite the setback, Swiss lawmaker Damien Cottier, chairman of the Swiss-U.S. parliamentary association, expressed optimism. “We have seen in other cases that President Trump’s positions can evolve,” he said. “We must continue to negotiate and argue our case, which is a good one.”

With reporting from Reuters

Although India has been one of Washington’s key strategic partners in countering China’s dominance in the Asia-Pacific region, experts warn that the latest wave of U.S. tariffs could prompt Delhi and Beijing to seek closer ties, as Alisha Rahaman Sarkar reports.