Trump hits dozens more countries with steep tariffs
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Diverging Reports Breakdown
Dollar strong as Trump imposes new tariff rates; yen slide spurs government warning
The U.S. dollar is on course to rise 2.4% this week, its best weekly performance since a 3.1% rally in September of 2022. The dollar also gained on non-tariff catalysts, with the yen touching a four-month low. The Swiss franc eased as much as 0.26% to 0.8120 per dollar after Trump set a 39% duty on Swiss imports, up from the 31% he previously mooted. Asian emerging markets got swept up in the selloff as the tariff fallout rippled through the region. The Philippine peso slumped to its weakest level in six months, while Taiwan’s dollar hit its lowest since early June. The euro remained pinned near an almost two-monthLow around $1.1428, as it continues to be weighed down by what markets see as a lopsided trade agreement with Washington. The release of the closely watched monthly payrolls data for July is expected to show a worrying slowdown but not expected to be particularly worrying.
Summary U.S. currency hits new highs after levies raised for some countries, including Canada
Yen on back foot after Bank of Japan signals no hurry to resume rate hikes
U.S. monthly jobs data due later in the day
TOKYO, Aug 1 (Reuters) – The dollar headed for its best week in almost three years against its major peers, maintaining momentum on Friday after U.S. President Donald Trump imposed new tariff rates on dozens of trade partners.
The dollar also gained on non-tariff catalysts, with the yen touching a four-month low, extending a steep decline from Thursday after the Bank of Japan signalled it was in no hurry to resume interest rate hikes.
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That prompted Japanese Finance Minister Katsunobu Kato to say on Friday that officials are “alarmed” by currency moves. The yen last changed hands at 150.46 per dollar after earlier dipping to 150.915 per dollar, its weakest since March 28.
The U.S. dollar index – which measures the currency against a basket of six major peers including the euro, yen, Swiss franc and Canada’s dollar – is on course to rise 2.4% this week, its best weekly performance since a 3.1% rally in September of 2022.
On Friday, it ticked up 0.1% to 100.14, its highest since May 29.
Some countries fared much worse than others in tariff rates, hurting their currencies.
Canada received a 35% levy instead of an earlier threatened 25%, briefly pushing the loonie down 0.12% to C$1.3872, its lowest since May 22 versus its U.S. peer.
The Swiss franc eased as much as 0.26% to 0.8120 per dollar after Trump set a 39% duty on Swiss imports, up from the 31% he previously mooted.
Asian emerging markets got swept up in the selloff as the tariff fallout rippled through the region. The Philippine peso slumped to its weakest level in six months, while Taiwan’s dollar hit its lowest since early June. South Korea’s won sank to levels last seen in mid-May.
The euro remained pinned near an almost two-month low around $1.1428, as it continues to be weighed down by what markets see as a lopsided trade agreement with Washington. That wasn’t far from Wednesday’s low of $1.1401, a level not seen since June 10.
“In the short-term, you can make the case for more dollar strength,” said Mike Houlahan, director at Electus Financial in Auckland. “The lion’s share of the tariff news has washed through.”
“The big move of the week has really been the euro getting rerated downwards,” he said. “The net result would be the EU-U.S. trade deal is a further headwind for the euro.”
The EU’s framework trade agreement with the U.S., struck on Sunday, was quickly criticized by French leaders and the German head of the European Parliament’s trade committee as being unfair for Europe.
PAYROLL DATA TO COME
The U.S. dollar stayed strong even though Trump continued his attacks on Federal Reserve Chair Jerome Powell overnight, calling him a “terrible” Fed Chair and calling his own decision to appoint Powell to the position a “mistake”.
Trump’s repeated threats to fire Powell and calls for the Fed to drastically cut rates have put the central bank’s independence in question, hurting the dollar in recent months.
The Fed shrugged off that pressure on Wednesday by holding policy steady, citing “somewhat elevated” inflation and a “solid” labour market.
That view of employment will be tested later in the day with the release of the closely watched monthly payrolls data.
Economists forecast that employment growth dropped to 110,000 new jobs in July from 147,000 new jobs the previous month, a notable slowdown but one that is not expected to be particularly worrying.
“Data-wise, the U.S. looks resilient,” said Shoki Omori, chief desk strategist at Mizuho Securities.
“If the U.S. economy is already operating above potential, that bump can translate into a slightly higher neutral rate of interest, which is supportive for front-end bond yields and therefore the U.S. dollar,” he said.
Reporting by Kevin Buckland: Additional reporting by Gregor Stuart Hunter; Editing by Edwina Gibbs
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Trump hits dozens more countries with steep tariffs
U.S. President Donald Trump imposed steep tariffs on exports from dozens of trading partners. Trump set rates including a 35% duty on many goods from Canada, 50% for Brazil, 25% for India, 20% for Taiwan and 39% for Switzerland. The administration also teased that more trade deals were in the pipeline as it seeks to close trade deficits and boost domestic factories. European stocks hit a three-week low on Friday as investors focused on the impact of the new tariffs. The pan-European STOXX 600 index (.STOXX) fell around 1% in early trading, down for the third straight session and on track to end the week in red. The Republican president has tapped emergency powers , pressured foreign leaders, and pressed ahead with trade policies that sparked a market sell-off when they were first announced in April. The higher tariffs on Canadian goods contrasted sharply with Trump’s decision to grant Mexico a 90-day reprieve from higher tariffs of 30% on many Canadian goods to allow time to negotiate.
Companies Mexico avoids 30% tariff on non-automotive, non-metals goods
A 35% tariff on many Canadian goods
Brazil hit with 50% tariff, some sectors excluded
China trade deal not finalized, August 12 deadline looms
Trump administration teases additional trade deals
WASHINGTON, Aug 1 (Reuters) – U.S. President Donald Trump imposed steep tariffs on exports from dozens of trading partners, including Canada, Brazil, India and Taiwan, ahead of a Friday trade deal deadline, pressing ahead with plans to reorder the global economy.
Trump set rates including a 35% duty on many goods from Canada, 50% for Brazil, 25% for India, 20% for Taiwan and 39% for Switzerland, according to a presidential executive order.
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The order , opens new tab listed higher import duty rates of 10% to 41% starting in seven days for 69 trading partners as the 12:01 a.m. EDT (0401 GMT) deadline approached.
Some of them had reached tariff-reducing deals while others had no opportunity to negotiate. Trump included an exception for some goods shipped within the coming week.
Goods from all other countries not listed would face a 10% U.S. import tax. Trump had previously said that rate might be higher. The administration also teased that more trade deals were in the pipeline as it seeks to close trade deficits and boost domestic factories.
The Republican president has tapped emergency powers , pressured foreign leaders, and pressed ahead with trade policies that sparked a market sell-off when they were first announced in April
U.S. federal appeals court judges on Thursday questioned Trump’s use of the emergency powers to justify his tariffs of up to 50% on nearly all trading partners.
Trump invoked the 1977 International Emergency Economic Powers Act to declare an emergency over the growing U.S. trade deficit and impose his “reciprocal” tariffs and a separate fentanyl emergency.
Asian shares were headed for the worst week since April on Friday after the tariffs were announced.
European stocks hit a three-week low on Friday as investors focused on the impact of the new tariffs. The pan-European STOXX 600 index (.STOXX) , opens new tab fell around 1% in early trading, down for the third straight session and on track to end the week in red
Trump’s tariff rollout comes amid more evidence they have begun driving up consumer goods prices.
U.S. Commerce Department data released Thursday showed prices for home furnishings and durable household equipment jumped 1.3% in June, the biggest gain since March 2022.
Recreational goods and vehicles prices shot up 0.9%, the most since February 2024. Prices for clothing and footwear rose 0.4%.
SWITZERLAND, TAIWAN, SOUTH AFRICA
Switzerland said it would push for a “negotiated solution” with the U.S., while Taiwan President Lai Ching-te said the new 20% tariff rate for the island was ” temporary ” and that he expected to reach a lower figure.
South Africa’s Trade Minister Parks Tau said he was seeking “real, practical interventions” to defend jobs and the economy against the 30% U.S. tariff it faces.
Trump’s order said some trading partners, “despite having engaged in negotiations, have offered terms that, in my judgment, do not sufficiently address imbalances in our trading relationship or have failed to align sufficiently with the United States on economic and national-security matters.”
A U.S. flag flutters near shipping containers as a ship is unloaded at the Port of Los Angeles, in San Pedro, California, U.S., May 1, 2025. REUTERS/Mike Blake/ File Photo Purchase Licensing Rights , opens new tab
Other details are still to come, including on the “rules of origin” that will determine what products might face even higher tariffs.
This range plot displays U.S. President Donald Trump’s tariff rates or the most recent previously announced or threatened tariff rates for the U.S.’s top trading partners on Aug. 1, 2025.
CANADA, MEXICO, INDIA
Trump issued a separate order , opens new tab for Canada that raises the rate on Canadian goods subject to fentanyl-related tariffs to 35%, from 25% previously, saying Canada had “failed to cooperate” in curbing illicit narcotics flows into the U.S.
The higher tariffs on Canadian goods contrasted sharply with Trump’s decision to grant Mexico a 90-day reprieve from higher tariffs of 30% on many goods to allow time to negotiate a broader trade pact.
Canadian Prime Minister Mark Carney said he was disappointed by Trump’s decision, and vowed to take action to protect Canadian jobs and diversify exports.
“While we will continue to negotiate with the United States on our trading relationship, the Canadian government is laser focused on what we can control: building Canada strong,” he said in a post on X.
The extension for Mexico avoids a 30% tariff on most Mexican non-automotive and non-metal goods compliant with the U.S.-Mexico-Canada Agreement on trade and came after a Thursday call between Trump and Mexican President Claudia Sheinbaum.
“We avoided the tariff increase announced for tomorrow,” Sheinbaum wrote on X, saying the Trump call was “very good.”
About 85% of U.S. imports from Mexico comply with the rules of origin outlined in the USMCA, shielding them from 25% tariffs related to fentanyl, according to Mexico’s economy ministry.
Trump said the U.S. would continue to levy a 50% tariff on Mexican steel, aluminum and copper and a 25% tariff on Mexican autos and on non-USMCA-compliant goods subject to tariffs related to the U.S. fentanyl crisis.
“Additionally, Mexico has agreed to immediately terminate its Non Tariff Trade Barriers, of which there were many,” Trump said in a Truth Social post, without providing details.
Indian goods seemed headed for a 25% tariff after talks bogged down over access to India’s agriculture sector, drawing a higher-rate threat from Trump that included an unspecified penalty for India’s purchases of Russian oil.
New Delhi vowed to protect the country’s farm sector, and the threat of higher rates from Trump triggered outrage from the opposition party and a slump in the rupee.
BRAZIL, CHINA
Trump hit Brazil’s exports on Wednesday with a 50% tariff as he escalated his fight with the country over its prosecution of former President Jair Bolsonaro, but softened the blow by excluding sectors such as aircraft, energy and orange juice from heavier levies.
Meanwhile, China is facing an August 12 deadline to reach a durable tariff agreement with Trump’s administration after Beijing and Washington reached preliminary deals in May and June to end tit-for-tat tariffs and a cut-off of rare earth minerals.
A U.S. official told reporters that they are making progress toward a deal.
Additional reporting by Doina Chiacu and Susan Heavey in Washington and Aftab Ahmed in New Delhi; Writing by David Lawder and Stephen Coates; Editing by Nick Zieminski, Daniel Wallis, Michael Perry and Jane Merriman
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Bangladesh secures 20% US tariff for garments, exporters relieved
Bangladesh has negotiated a 20% tariff on exports to the U.S., down from the 37% initially proposed. The new rate is in line with those offered to other major apparel-exporting countries such as Sri Lanka, Vietnam, Pakistan and Indonesia. India, which failed to reach a comprehensive agreement with Washington, will face a steeper 25% tariff. Pakistan, which exported about $4.1 billion worth of apparel to the United States in the 2024 fiscal year, secured a tariff rate of 19%, but industry figures were cautious about the immediate impact. The readymade garments sector is the backbone of Bangladesh’s economy, accounting for more than 80% of total export earnings. It employs about 4 million workers, and contributing about 10% to gross domestic product (GDP) The prospect of higher U.s. tariffs has rattled Bangladesh’s ready-made garments industry, which fears losing competitiveness in one of its largest markets.
Summary
Companies Bangladesh secures 20% tariff on key garment exports to US
India faces higher 25% tariff on apparel shipments
Pakistani exporters cautious about impact of 19% tariff
DHAKA/KARACHI/AHMEDABAD, Aug 1 (Reuters) – Bangladesh has negotiated a 20% tariff on exports to the U.S., down from the 37% initially proposed by U.S. President Donald Trump, bringing relief to exporters in the world’s second-largest garment supplier.
The new rate is in line with those offered to other major apparel-exporting countries such as Sri Lanka, Vietnam, Pakistan and Indonesia. India, which failed to reach a comprehensive agreement with Washington, will face a steeper 25% tariff.
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Trump put steep tariffs on exports from dozens of trading partners, including Canada, Brazil, India and Taiwan, ahead of a Friday trade deal deadline.
The outcome secured by Bangladesh – home to a $40 billion apparel export sector – reflects careful negotiation, said Khalilur Rahman, national security adviser and lead negotiator.
“Protecting our apparel industry was a top priority, but we also focused our purchase commitments on U.S. agricultural products. This supports our food security goals and fosters goodwill with U.S. farming states,” Rahman said.
Muhammad Yunus, the head of the country’s interim government, called it a “decisive diplomatic victory”.
The readymade garments sector is the backbone of Bangladesh’s economy, accounting for more than 80% of total export earnings, employing about 4 million workers, and contributing about 10% to gross domestic product.
The prospect of higher U.S. tariffs has rattled Bangladesh’s ready-made garments industry, which fears losing competitiveness in one of its largest markets.
“While the 20% tariff will cause some short-term pain, Bangladesh remains better positioned than many of its competitors,” said Mohiuddin Rubel, additional managing director at Denim Expert Ltd, which makes jeans and other items for brands including H&M.
Exporters in neighbouring India said the relatively higher tariffs levied would hurt the country’s textile exports, as its competitors like Bangladesh, Vietnam and Cambodia got lower tariffs.
“We are hoping that the tariffs will be rationalised. We will have to recalibrate our strategies depending on the final tariff imposed, said Chintan Thakker, chairman of industry body ASSOCHAM in the state of Gujarat, a major apparel exporter.
‘DEVIL WILL BE IN THE DETAILS’
Pakistan, which exported about $4.1 billion worth of apparel to the United States in the 2024 fiscal year, secured a tariff rate of 19%, but industry figures were cautious about the immediate impact.
“Considering India’s lower production costs and the likelihood of it negotiating reduced tariffs in the near term, Pakistan is unlikely to either gain or lose a meaningful share in the apparel segment,” Musadaq Zulqarnain, founder and chair of Interloop Limited – a leading Pakistani exporter.
“If the current reciprocal tariff structure holds, significant investment is likely to flow into DR-CAFTA countries and Egypt,” he said, referring to a trade agreement between the U.S. and a group of Caribbean and Central American countries.
Elsewhere in South Asia, Sri Lanka also secured a 20% tariff rate from the U.S., which accounted for 40% of its apparel exports of $4.8 billion last year.
“The devil will be in the details as there are questions over issues such as trans-shipment, but overall it’s mostly good,” Yohan Lawrence, secretary general of the Joint Apparel Associations Forum, a Sri Lankan industry body, told Reuters.
Reporting by Ruma Paul in Dhaka, Ariba Shahid in Karachi, Dhwani Pandya in Mumbai, Uditha Jayasinghe in Colombo and Sumit Khanna in Ahmedabad; Writing by Shilpa Jamkhandikar; Editing by Helen Popper
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Nintendo reports robust early sales of Switch 2, keeps full-year forecast
Nintendo (7974.T) sold more than six million units of the Switch 2 in the seven weeks following its June launch. The successor to the hit home-portable Switch went on sale in the midst of U.S. President Donald Trump’s trade war. Nintendo said operating profit grew 4% to 56.9 billion yen ($378 million) in the April-June quarter, beating analysts’ estimates. The Switch 2 was launched on June 5 with titles including “Mario Kart World” and upgraded “The Legend of Zelda” series with better graphics.
TOKYO, Aug 1 (Reuters) – Nintendo (7974.T) , opens new tab sold more than six million units of the Switch 2 in the seven weeks following its June launch, the gaming company said on Friday, pointing to strong early demand.
The successor to the hit home-portable Switch went on sale in the midst of U.S. President Donald Trump’s trade war, testing Nintendo’s supply chain management.
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“The six million units sold are a testament to the incredible pent-up demand for an update of the first Switch,” said Serkan Toto, founder of the Kantan Games consultancy.
The company provided the early sales volumes in an earnings update and said it was keeping its forecast of selling 15 million Switch 2 units in the financial year ending March 2026.
Kyoto-based Nintendo said operating profit grew 4% to 56.9 billion yen ($378 million) in the April-June quarter, beating analysts’ estimates.
It said U.S. tariff measures and other changes in the market environment had no significant impact on its current earnings forecast.
The Switch 2 was launched on June 5 with titles including “Mario Kart World” and upgraded “The Legend of Zelda” series with better graphics.
Nintendo sold 8.67 million Switch 2 software units during the quarter with “Mario Kart World” frequently bundled with the device.
“Donkey Kong Bananza” was released on July 17 and has a score of 92 out of 100 on reviews aggregator Metacritic, indicating universal acclaim.
“Nintendo must use the momentum and the absence of blockbuster GTA 6 this year to carry the Switch 2 through to the holidays,” said Toto of Kantan Games.
“Grand Theft Auto VI” was slated to launch this year and was expected to provide a boost to consoles such as Sony’s (6758.T) , opens new tab PlayStation 5 but its release has been delayed to 2026.
Nintendo’s shares closed down 0.75% ahead of earnings and have gained roughly a third this year.
($1=150.58 yen)
Reporting by Sam Nussey; Editing by Jacqueline Wong, Neil Fullick, Elaine Hardcastle
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Gold set for third weekly loss amid stronger dollar, reduced Fed rate cut hopes
Gold prices held steady on Friday, but poised for a third consecutive weekly loss. Bullion is down 1.4% so far this week, pressured by a stronger dollar and diminished expectations for U.S. rate cuts. Spot gold was steady at $3,288.89 per ounce, as of 0733 GMT. Silver fell 0.7% to $36.50 per ounce,. platinum lost 0.8% at $1,278.40 and palladium was down 0.2% to £1,188.28. All three metals were headed for weekly losses.
US dollar index hovers near two-month high
Silver, platinum, palladium set for weekly losses
Aug 1 (Reuters) – Gold prices held steady on Friday, but is poised for a third consecutive weekly loss pressured by a stronger dollar and diminished expectations for U.S. rate cuts, while uncertainty from U.S. tariffs on trading partners offered support.
Spot gold was steady at $3,288.89 per ounce, as of 0733 GMT. Bullion is down 1.4% so far this week.
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U.S. gold futures edged down 0.3% to $3,339.90.
The dollar index (.DXY) , opens new tab hit its highest level since May 29, making gold more expensive for other currency holders.
“Gold remains weighed by reduced bets for Fed rate cuts for the rest of 2025. This week’s U.S. GDP, weekly jobless claims, and PCE figures also shored up the Fed’s reluctance to commit to a rate cut,” said Han Tan, chief market analyst at Nemo.Money.
Fed held rates steady in the 4.25%-4.50% range on Wednesday and dampened expectations for a September rate cut.
U.S. President Donald Trump slapped steep tariffs on exports from dozens of trading partners, including Canada, Brazil, India and Taiwan, pressing ahead with his plans to reorder the global economy ahead of a Friday trade deal deadline.
“The precious metal should, however, remain supported amid the still-uncertain impact from U.S. tariffs on global economic growth,” Tan said.
U.S. inflation increased in June as tariffs on imports started raising the cost of some goods.
Focus now shifts to U.S. jobs data, due later on Friday, as investors assess the Federal Reserve’s policy trajectory, with July job growth expected to have slowed and the unemployment rate projected to rise to 4.2%.
Gold, often considered a safe-haven asset during economic uncertainties, tends to perform well in a low-interest-rate environment.
Physical gold demand in key Asian markets improved slightly this week as a pullback in prices sparked buying interest, though volatility kept some buyers cautious.
Spot silver fell 0.7% to $36.50 per ounce, platinum lost 0.8% at $1,278.40 and palladium was down 0.2% to $1,188.28. All three metals were headed for weekly losses.
Reporting by Anmol Choubey in Bengaluru; Editing by Harikrishnan Nair
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