(Reuters) – The highest rates of 10% to 50% imposed by President Donald Trump to dozens of US business partners have come into force, testing their strategy to reduce US commercial deficits without major interruptions in global supply chains, higher inflation and strict retaliation of partners.
The US Border Customs and Protection Agency began charging the highest rates after weeks of suspense on Trump’s final rates and frantic negotiations with major business partners seeking to reduce them.
Ships loaded on US and transit ships before the deadline can enter lower previous rates before October 5, according to an agency warning for shipping issued this week. Imports from many countries were previously subject to a 10% basic import tariff after Trump suspended the highest rates announced in April.
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But since then, Trump has frequently changed his tariff plan, applying much higher rates to some countries, including 50% for products in Brazil, 39% of Switzerland, 35% of Canada and 25% of India. On Wednesday, he announced a separate 25% tariff on Indian products, to be imposed within 21 days due to Russian oil purchases throughout Southern Asia.
Before the deadline, Trump announced the “billions of dollars” that will flow to the US, in much of countries that they said, they have taken advantage of the United States.
“The only thing that can prevent America’s grandeur would be a radical left court that wants to see our country fails!” Trump said on Truth Social.
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Eight major commercial partners, representing about 40% of US commercial flows, have reached agreements for commercial and investment concessions with Trump, including the European Union, Japan and South Korea, reducing their basic varying rates to 15%.
The United Kingdom obtained a 10%rate, while Vietnam, Indonesia, Pakistan and Philippines guaranteed rate reductions to 19%or 20%.
“For these countries, the news is less bad,” said William Reinsch, senior member and trade specialist at the Center for Strategic and International Studies in Washington.
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“There will be some rearrangement in the chain of offer. There will be a new balance. Prices will go up here, but it will take some time to manifest significantly,” Reinsch said.
Countries with very high rates, such as India and Canada, “will continue to strive to try to fix it,” he added.
Trump’s order has specified that any commodity that has been overflowed from a third country to escape the highest US tariffs will be subject to an additional 40%import tariff, but your government has released few details on how these goods will be identified or how the disposition will be applied.
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Tarph’s tariff decree of July 31 imposed rates above 10% to 67 business partners, while the rate was kept 10% for those who are not listed.
These import taxes are part of a multi -layer tariff strategy that includes sector rates based on national security on semiconductors, pharmaceuticals, automobiles, steel, aluminum, copper, wood and other products. Trump said on Wednesday that microchips rates could reach 100%.
China is in a separate trajectory and will face a possible increase in tariffs on August 12, unless Trump takes advantage of the previous truce after conversations last week in Sweden. He said he could impose additional rates on Russian oil purchases by China, as he seeks to press Moscow to end his war in Ukraine.
