United States President Donald Trump imposed tens of high tariffs before the deadline for commercial agreements on Friday, including a 35% rate on many Canada products, 50% for Brazil, 25% for India, 20% for Taiwan and 39% for Switzerland.
Trump released a decree listing higher import fees, from 10% to 41%, from seven days, to 69 trading partners, as the midnight deadline was approaching. Some of them had closed tariff reduction agreements and others had no opportunity to negotiate with their government.
The decree says that products from all other countries not listed in an annex would be subject to a 10% tariff in the US.
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Trump’s decree states that some business partners, “although they have engaged in negotiations, offered terms that, in my view, do not sufficiently address the imbalances in our business relationship or have not aligned with the United States on economic and national security issues.”
Trump issued a separate decree to Canada that increases the rate on Canadian products subject to fentanyl -related tariffs to 35% instead of the previous 25%, saying that Canada “did not cooperate” in reducing fentanyl flows to the US.
The highest rates on Canadian products are strongly contrast with Trump’s decision to grant Mexico a 90 -day postponement of the highest rates of 30% over many products to give more time to negotiate a broader commercial pact.
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A US authority told reporters that more trade agreements were yet to be announced, as Trump’s higher “reciprocal” tariffs were about to take effect.
“We have some agreements,” the authority said. “And I don’t want to anticipate the president of the United States to announce these agreements.”
Regarding exorbitant rates on Canada products, the second largest US commercial partner after Mexico, the authority said the Canadian authorities “did not demonstrate the same level of construction we saw on the Mexican side.”
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Extension to Mexico avoids a 30% rate on most non-automotive and non-metallic Mexican products in accordance with the US-México-Canada (USMCA) trade agreement and came after a call on Thursday morning between Trump and Mexican president Claudia Sheinbaum.
“We avoided the increase in tariffs announced tomorrow,” Sheinbaum wrote in a publication in social media X, adding that Trump’s call was “very good.”
Approximately 85% of US imports from Mexico are in accordance with the rules of origin described in the USMC, protecting them from 25% fees related to Fentanil, according to the Mexico Ministry of Economy.
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Trump said the US would continue to charge a 50% tariff on steel, aluminum and copper Mexicans and a 25% tariff over Mexican cars and products not compatible with USMCA subject to US -related tariffs in the US.
“In addition, Mexico agreed to immediately end their non -tariff commercial barriers, which were many,” Trump said in a social Truth post without providing details.
South Korea agreed on Wednesday to accept a 15% rate of its exports to the US, including automobiles, below the 25% threat, as part of an agreement that includes the promise of investing $ 350 billion in US projects to be chosen by Trump.
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However, India products seemed to be directed to a 25% tariff after negotiations failed to access to the Indian agricultural sector, attracting a higher rate of Trump, which also included an unspecified penalty for Russian oil purchases by India.
Although negotiations with India were ongoing, New Delhi promised to protect the country’s agricultural sector, which uses intensive labor, causing opposition party outrage and a drop in ruffy.
Trump’s highest import taxes on Friday occurs amid more evidence that they have begun to increase the prices of consumer goods.
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Data from the Trade Department released on Thursday showed that the prices of durable furniture and home equipment increased by 1.3% in June, the highest gain since March 2022, after an increase of 0.6% in May. The prices of recreational goods and vehicles rose 0.9%, the highest increase since February 2024, after being unchanged in May. Clothing and footwear prices increased by 0.4%.
Difficult questions from judges
Trump hit Brazil on Wednesday with a 50%rate, increasing his struggle with the largest economy in Latin America because of his ally and former President Jair Bolsonaro, but softened the blow by excluding sectors such as aircraft, energy and orange juice of heavier rates.
Preparation for Trump’s tariff deadline was unfolding while judges of a Federal Court harshly questioned Trump’s use of an emergency powers to justify their comprehensive tariffs up to 50% over almost all business partners.
Trump invoked the 1977 international emergency economic powers to declare an emergency in the growing US commercial deficit and to impose their “reciprocal” tariffs and a separate emergency for Fentanil.
The International Court of Trade ruled in May that the lawsuits exceeded its executive authority, and the judges’ questions during the oral arguments before the Federal Circuit Court Court in Washington indicated more skepticism.
US Treasury Secretary Scott Bessent said earlier that the United States believe they have the basis of a trade agreement with China, but that it “is not 100% ready” and still needs Trump’s approval.
US negotiators “argued a lot” for two days of trade negotiations with the Chinese in Stockholm this week, Bessent said in an interview with CNBC.
China is facing a deadline until August 12 to reach a lasting Trump tariff agreement after Beijing and Washington came to preliminary agreements in May and June to end tariff climbing and a blockade of rare land minerals.
