Trump unveils surprise new tariffs on over 70 countries hours before Aug 1 deadline | World News

The new rates were decided based on trade imbalance with the US and regional economic profiles, a senior administration official in the know was quoted as saying by news agency AP reported. The tariffs are being implemented at a later date in order for the rates schedule to be harmonised, the official added.

August 1 deadline

In a post on Truth Social, Trump had written: “THE AUGUST FIRST DEADLINE IS THE AUGUST FIRST DEADLINE – IT STANDS STRONG, AND WILL NOT BE EXTENDED. A BIG DAY FOR AMERICA!!!”

When announcing the revised Aug 1 deadline early in July, he said the date was “firm, but not 100% firm.”

In the lead-up to the set date, Trump sent formal letters to several countries, outlining the new tariff rates their countries’ exports would face beginning in August. Most of the figures mirrored the initial rates set on April 2.

In early April, Trump announced that the US would implement a blanket 10 per cent tariff on imports from nearly every country, alongside higher targeted duties of up to 50 per cent on goods from dozens of nations.

His “Liberation Day” tariffs announcement had sparked widespread concern among global leaders and investors, and created stock market panic, prompting Trump to pause the steeper tariffs for 90 days — a delay that was initially set to expire on July 9.

Status check on trade deals

Early Friday, Trump said: “We have made a few deals today that are excellent deals for the country.” He did not specify details of the agreement terms or the countries involved.

A day before the Aug 1 deadline, he announced 25 percent tariffs on India “plus a penalty” for procuring military equipment and energy from Russia.

Meanwhile, the Chinese are at an advanced stage of negotiations towards a deal with the US. It is likely to have a favourable tariff rate and potential waivers on secondary tariffs, which include the tariff on account of Russian oil imports and the proposed 10 per cent BRICS tariff.

“We haven’t spoken to Canada today,” the President said, adding that Canadian Prime Minister Mark Carney had called ahead of 35 per cent tariffs being imposed on their goods.

Trump reached a deal with South Korea on Wednesday, and earlier with Japan, Indonesia and the Philippines.

Agreements with Cambodia and Thailand were locked after they agreed to a ceasefire to their border conflict, US commerce secretary Howard Lutnick told Fox News.

Switzerland and Norway are still uncertain about their tariff rates as of Friday morning. After the deal he made when in Scotland, EU officials are said to be waiting to complete a crucial document outlining how the framework to tax imported autos and other goods from the 27-member state bloc would operate.

The US-Mexico deal

Prior to the surprise order, Trump said he would enter into a 90-day negotiating period with Mexico, one of the largest trading partners for the US. This came after a phone conversation with Mexican President Claudia Sheinbaum.

As a result, the current 25 per cent tariff rates for Mexico still stands, down from the 30 per cent Trump had threatened earlier.

“We avoided the tariff increase announced for tomorrow and we got 90 days to build a long-term agreement through dialogue,” Mexican leader Claudia Sheinbaum wrote on X after the call. Trump referred to it as “very successful” in terms of the leaders getting to know each other better.

Trump said as part of the agreement with Mexico that goods imported into the US would continue to face a 25 per cent tariff that he has ostensibly linked to fentanyl trafficking. He said autos would face a 25 per cent tariff, while copper, aluminium and steel would be taxed at 50 per cent during the negotiating period.

He said Mexico would end its “Non Tariff Trade Barriers,” but he didn’t provide specifics.

With AP inputs