Sign in Subscribe
International trade

Trump Administration Unveils New Tariffs on Decades of Countries' Exports

Strategic Insights

— 2 min read

The US President's administration has announced a range of new tariffs that will take effect on most US trading partners in a week's time, affecting nearly 70 countries. The tariffs, intended to give US exporters a stronger position, have sparked concerns among global markets and governments, with varying reactions from countries such as China, Japan, and the European Union. The tariffs will range from 15 percent on countries like Japan and the European Union to 39 percent on Switzerland.

Key Takeaways:

  • The new tariffs will take effect in one week, affecting nearly 70 countries, with varying levies ranging from 15 percent to 39 percent.
  • China has warned that US protectionism "harms the interests of all parties," with Foreign Ministry spokesman Guo Jiakun stating that there is "no winner in a tariff war or trade war."
  • Taiwan has called the 20 percent tariff announced by Trump "temporary" with the possibility of further reductions if an agreement is reached.
  • Japan's automakers have swallowed the rising costs from the tariffs instead of passing them on to US consumers, seen in a fall of roughly 20 percent in export prices since April.
  • The European Union's Trade Chief Maros Sefcovic said the bloc's exporters now benefit from a "more competitive position" following a framework agreement between the EU and the US.
  • Switzerland expressed "great regret" that it was hit with 39 percent, despite its "very constructive position," with pharma giants Roche and Novartis announcing major spending plans.
  • Sri Lanka expressed relief that it will face a 20 percent hit, with Finance Ministry official Harshana Suriyapperuma stating that the country's competitiveness in exports to the US has been retained.
  • India will face a 25 percent US tariff starting August 1, with Trump saying that all Indian goods would be penalized.
  • South Africa will use the delayed imposition of 30 percent tariffs to negotiate and avoid penalties, with President Cyril Ramaphosa saying "our task is to negotiate as strongly and as hard as we can with the United States."
  • Trump announced a tariff increase from 25 percent to 35 percent on certain Canadian goods, with Prime Minister Mark Carney stating that his government is "disappointed" by the decision.

Statistics:

  • 69 countries face new tariffs from the US.
  • Tariffs will range from 15 percent to 39 percent on these countries.
  • China warned that US protectionism harms the interests of all parties.
  • Japanese automakers have seen a 20% decrease in export prices since April due to tariffs.
  • European Union's exporters benefit from a "more competitive position" due to the framework agreement with the US.
  • Switzerland's 39% tariff is more than double the EU's 15% tariff.
  • Sri Lanka's competitiveness in exports to the US has been retained.
  • India will face a 25% US tariff starting August 1.
  • South Africa will use the delayed imposition of 30% tariffs to negotiate and avoid penalties.
  • Trump announced a tariff increase from 25% to 35% on certain Canadian goods.

Sources:

  • "Trump sets new tariffs on dozens of countries' exports." aljazeera.com.
  • "China warns US protectionism harms all parties." aljazeera.com.
  • "Taiwan welcomes US trade talks, says tariff cut possible." reuters.com.
  • "Japan BOJ warns of profit falls from US tariffs." aljazeera.com.
  • "Sri Lanka welcomes US tariff cut, hopes for more." asiaone.com.
  • "India faces 25% US tariff from August 1 - Trump." reuters.com.
  • "South Africa to negotiate with US over tariffs." news24.com.
  • "Trump raises tariffs on Canadian goods to 35%." reuters.com.

Read more