U.S. President Donald Trump speaks to reporters ahed of boarding Marine One to depart for New Jersey, on the White Home in Washington, D.C., U.S., August 1, 2025.
Jonathan Ernst | Reuters
U.S. President Donald Trump’s so-called “reciprocal” tariffs took impact on Thursday, imposing increased duties on most of the nation’s buying and selling companions’ exports to the U.S.
“IT’S MIDNIGHT!!! BILLIONS OF DOLLARS IN TARIFFS ARE NOW FLOWING INTO THE UNITED STATES OF AMERICA!” Trump wrote on social media platform Reality Social.
In an earlier submit Trump had mentioned the tariffs have been concentrating on “COUNTRIES THAT HAVE TAKEN ADVANTAGE OF THE UNITED STATES FOR MANY YEARS.”
Trump final week — forward of his Aug. 1 tariffs deadline — rejigged the tariff charges and pushed again the deadline to Aug. 7.
Among the steepest duties embody Syria’s 41%, and Laos and Myanmar’s 40% fee, whereas Switzerland — after being unsuccessful in a last-minute scramble for a deal — is dealing with 39% tariffs.
Swiss negotiators this week travelled to Washington D.C. for talks after the nation’s increased fee got here as a shock to many, however to this point, no deal seems to have been agreed. An replace is anticipated from the Swiss authorities afterward Thursday.
Individually, Brazil and India are each now dealing with duties of fifty%. Whereas Brazil’s tariffs seem to have kicked in, India’s fee is at 25% for now, and can rise to 50% later this month, in response to an govt order signed Wednesday. Trump mentioned his tariffs on India are associated to its present purchases of Russian oil.
Different international locations and areas, in the meantime, have been in a position to strike commerce agreements with the U.S. This contains the European Union, Japan and South Korea — which all now face 15% tariffs — in addition to the U.Ok., which negotiated a ten% fee.
Others, together with China and Mexico, stay in limbo. China is engaged in one thing of a commerce truce with the U.S. for now, whereas beforehand introduced charges for Mexico are on pause.
‘This recreation will not be over’
Trump’s newest tariff bulletins — together with increased duties on India and threats of 100% tariffs on chips — present “this recreation will not be over,” in response to Invoice Papadakis, macro strategist at Lombard Odier.
“There was some optimism constructing just lately as a result of the general degree of uncertainty has come down,” he informed CNBC’s “Europe Early Version” on Thursday, mentioning that a number of offers have been made and Trump has walked again a few of his threats.
“However we should not be overly optimistic both,” he warned, because the affect of tariffs on financial progress and inflation will not be but clear.
Beat Wittmann, chairman and associate at Zurich-based Porta Advisors, famous that sharp duties like those confronted by India and Switzerland shouldn’t come as a shock.
“You simply watch how Trump is treating neighbors, Canada, after which you’ll be able to think about all the remaining. So welcome to this new world,” he informed CNBC’s “Squawk Field Europe.”
Wittmann additionally weighed in on Switzerland, because it scrambles to decrease its tariff fee.
“What ought to Switzerland do? Understand that we dwell in a world of policymakers and these different three superpowers — China, EU and the U.S., and all the remaining — are in varied levels, takers,” he mentioned.
“So the one factor you are able to do is short-term accommodate, be versatile, be adaptive. However you understand, structurally, you must grow to be stronger your self and extra unbiased.”