US president Donald Trump’s sweeping new tariffs for dozens of countries have come into force as he continues to escalate his global trade war.
Last week Trump announced higher import duty rates of between 10 per cent and 41 percent for multiple trading partners including the European Union, set to come into force on August 7.
This week he decided to add an additional 25 per cent duty on India as punishment for importing Russian oil. The new import tax will raise duties on some Indian exports to as high as 50 per cent.
Among the other hardest hit nations is Switzerland on 39 percent, while Canada is facing 35 percent. Some of the countries affected had reached tariff-reducing deals with the U.S. but others had no opportunity to negotiate with the Trump administration.
Goods from all other countries not listed would be subject to a 10 per cent US import tax. Trump had previously threatened that rate might be higher.
The administration also teased that more trade deals were in the pipeline as it seeks to close trade deficits.
Trump’s separate order for Canada raises the rate on Canadian goods subject to fentanyl-related tariffs to 35 per cent, from 25 per cent previously, saying the country had “failed to cooperate” in curbing illicit narcotics flows into the U.S.
The higher tariffs on Canadian goods contrasted sharply with Trump’s decision to grant Mexico a 90-day reprieve from higher tariffs of 30 per cent on many goods to provide more time to negotiate a broader trade pact.
Canadian prime minister Mark Carney said he was disappointed by Trump’s decision, and vowed to take action to protect Canadian jobs and diversify the country’s export markets.
Meanwhile, China is facing an August 12 deadline to reach a tariff agreement with Trump’s administration after Beijing and Washington reached preliminary agreements in May and June to end tit-for-tat levies. A U.S. official said they are making progress toward a deal.
India 50%
Syria 41%
Laos 40%
Myanmar 40%
