Higher US Tariffs Kick in for Dozens of Trading Partners

The United States began charging higher tariffs on goods from dozens of trading partners Thursday, in a major escalation of President Donald Trump's drive to reshape global commerce in America's favor.

Shortly before the new levies kicked in, Washington separately announced it would double Indian tariffs to 50% and hit many semiconductor imports from around the world with a 100% levy.

As an executive order signed last week by Trump took effect, U.S. import duties rose from 10% to levels between 15% and 41% for a list of trading partners.

Many imports from economies including the European Union, Japan and South Korea now face a 15% tariff, even with deals struck with Washington to avert steeper threatened levies.

But others like India face a 25% duty -- to be doubled in three weeks to 50% -- while Syria, Myanmar and Laos face staggering levels at either 40% or 41%.

Switzerland's government, which failed to convince Trump not to impose a stinging 39% tariff, was set to hold an extraordinary meeting later Thursday.

Taking to his Truth Social platform just after midnight, Trump posted: "IT'S MIDNIGHT!!! BILLIONS OF DOLLARS IN TARIFFS ARE NOW FLOWING INTO THE UNITED STATES OF AMERICA!"

The latest wave of "reciprocal" duties, aimed at addressing trade practices Washington deems unfair, broadens the measures Trump has imposed since returning to the presidency.

'No Charge'

On the eve of his latest salvo, he doubled planned duties on Indian goods to 50%, citing New Delhi's continued purchase of Russian oil.

The new levy -- up from 25% now -- would take effect in three weeks.

The Federation of Indian Export Organisations called the move a "severe setback for Indian exports, with nearly 55% of our shipments to the U.S. market directly affected."

For New Delhi, one of the main sticking points has been Washington's demand to access India's vast agricultural and dairy market.

"We will not compromise with the interests of our farmers, our dairy sector, our fishermen," Prime Minister Narendra Modi said Thursday.

Trump's order also threatened penalties on other countries that "directly or indirectly" import Russian oil, a key revenue source for Moscow's war in Ukraine.

Washington has already separately stuck tariffs on sector-specific imports such as steel, autos and pharmaceuticals.

Trump said Wednesday he also planned an "approximately 100% tariff" on semiconductor imports, but with "no charge" for companies investing in the United States or committed to do so.

Shares in Taiwanese chip-making giant TSMC surged as Taipei said it would be exempt, but some other Asian manufacturers took a beating.

Companies and industry groups warn the new levies will severely hurt smaller American businesses, while economists caution that they could fuel inflation and hit growth.

With the dust settling on countries' tariff levels, at least for now, Georgetown University professor Marc Busch expects U.S. businesses to pass along more of the bill to consumers.

'This Will Matter'

An earlier 90-day pause in these higher "reciprocal" tariffs gave importers time to stock up, he said.

But although the wait-and-see strategy led businesses to absorb more of the tariff burden initially, inventories are depleting and it is unlikely they will do this indefinitely, he told AFP.

"With back-to-school shopping just weeks away, this will matter politically," said Busch, an international trade policy expert.

The tariffs leave lingering questions for partners that have negotiated deals with Trump recently.

Tokyo and Washington, for example, appear at odds over key details of their pact, in particular on when lower levies on Japanese cars will take place.

Generally, U.S. auto imports now face a 25% duty under a sector-specific order. Toyota has cut its full-year profit forecast by 14% because of the tariffs.

Japan and the United States also appear to differ on whether the "reciprocal" tolls of 15% on other Japanese goods would be on top of existing levies or -- like the EU -- be capped at that level.

China and the United States, meanwhile, currently have a shaky truce in their standoff but that is due to expire on August 12.

Chinese exports to the United States tumbled 21.7% last month, official data showed, while those to the European Union jumped 9.2% and to Southeast Asia by 16.6%.

The EU is seeking a carveout from tariffs for its key wine industry.

In a recent industry letter addressed to Trump, the U.S. Wine Trade Alliance and others urged the sector's exclusion from tolls, saying: "Wine sales account for up to 60% of gross margins of full-service restaurants."

Trump has separately targeted Brazil over the trial of his right-wing ally, former president Jair Bolsonaro, who is accused of planning a coup.

U.S. tariffs on various Brazilian goods surged from 10% to 50% Wednesday, but broad exemptions including for orange juice and civil aircraft are seen as softening the blow. Still, key products like Brazilian coffee, beef and sugar are hit.