President Donald Trump signed an executive order Thursday placing tariffs on many U.S. trade partners — the next step in his trade agenda that will test the global economy and alliances. They are set to go into effect in seven days, and not the Friday deadline that the president initially set. The extension reflects the […]
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Trump signs order for more tariffs on US partners to go into effect in 7 days
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President Donald Trump signed an executive order Thursday placing tariffs on many U.S. trade partners — the next step in his trade agenda that will test the global economy and alliances. They are set to go into effect in seven days, and not the Friday deadline that the president initially set.
The extension reflects the government’s need for more time to harmonize the tariff rates, according to a senior official who spoke to reporters on condition of anonymity. The order applies to 68 countries and the 27-member European Union. Nations not listed in the order would face a baseline 10% tariff.
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Swiss pharmaceutical Roche says medications should be exempt from tariffs
Swiss pharmaceuticals powerhouse Roche says it is working to ensure its patients and customers around the world have access to medications and diagnostics amid the Trump tariff war.
“While we believe pharmaceuticals and diagnostics should be exempt from tariffs to protect patient access, supply chains and ultimately future innovation, we are prepared for potential tariffs being implemented and confident in managing any impacts,” the statement said. “With strengthened U.S. production capacity and proactive measures like inventory adjustments and tech transfer, we are working to ensure uninterrupted access to our products.”
The company announced plans in April to invest $50 billion in the United States over the next five years, creating 12,000 jobs. The company already employs more than 25,000 people in the U.S.
Dozens of countries with no deals face new tariffs as trade deadline looms
Some of the United States’ biggest trading partners have reached agreements, or at least the outlines of one, including the European Union, the United Kingdom, and Japan. Even so, those countries face much higher tariffs than were in effect before Trump took office.
Other large trading partners — most notably China and Mexico — received an extension to keep negotiating, but they will likely end up paying more.
Trump orders a 35% tariff for goods from Canada, asserting a lack of cooperation on illicit drugs
Trump has raised the tariff rate on U.S. imports from Canada to 35% from 25%, effective Friday. The announcement from the White House late Thursday said Canada had failed to “do more to arrest, seize, detain or otherwise intercept … traffickers, criminals at large, and illicit drugs.”
The new tariffs build off ones announced in the spring
Trump initially imposed the Friday deadline after his previous “Liberation Day” tariffs in April resulted in a stock market panic.
Swiss imports will now be taxed at a higher rate, 39%, than the 31% Trump threatened in April, while Liechtenstein saw its rate slashed from 37% to 15%. Countries not listed in the Thursday night order would be charged a baseline 10% tariff.
Trump negotiated trade frameworks over the past few weeks with the EU, Japan, South Korea, Indonesia and the Philippines, claiming victories as other nations sought to limit his threat of charging even higher tariff rates.
Which countries have a trade agreement?
In a flurry of last-minute deal-making, Trump announced several agreements that were short on details.
On Thursday, the U.S. and Pakistan reached a trade agreement expected to allow Washington to help develop Pakistan’s largely untapped oil reserves and lower tariffs for the South Asian country.
And on Wednesday, Trump announced a deal with South Korea that would impose 15% tariffs on goods from that country. That is below the 25% duties that Trump threatened in April.
Agreements have also been reached with the European Union, Pakistan, Indonesia, Vietnam, the Philippines, and the United Kingdom. The agreement with the Philippines barely reduced the tariff it will pay, from 20% to 19%.
Will this next Aug. 7 deadline hold?
Trump’s original April 2 “Liberation Day” announcement threatened to impose import taxes of up to 50% on nearly 60 countries and economies, including the 27-nation European Union. Those duties, originally scheduled for April 9, were then postponed twice, first to July 9 and then Aug. 1.
On Wednesday, Trump said on his social media platform Truth Social, “THE AUGUST FIRST DEADLINE IS THE AUGUST FIRST DEADLINE — IT STANDS STRONG, AND WILL NOT BE EXTENDED.”
Thursday afternoon, White House representatives — and Trump himself — were still insisting that no more delays were possible. But when Trump signed the order Thursday night imposing new tariffs on 68 countries and the European Union, the start date of the punishing import taxes was pushed back seven days so that the tariff schedule could be updated.
The change is potentially welcome news to countries that had not yet reached a deal with the U.S.
Dozens of countries with no deals face new tariffs as trade deadline looms
Numerous countries around the world now face the prospect of new tariffs on their exports to the United States on Aug. 7, a potential blow to the global economy, because they haven’t yet reached a trade deal with the Trump administration.
Trump intends the duties to bring back manufacturing to the United States, while also forcing other countries to reduce their trade barriers to U.S. exports. Trump argues that foreign exporters will pay the cost of the tariffs.
Countries without an agreement face duties ranging between 10% and 40%, according to Trump’s executive order signed on Thursday. That includes large economies such as Taiwan and India, as well as many smaller countries like South Africa, Sri Lanka, Bangladesh, and even tiny Lesotho.
PHOTO- AP