
Trump’s 35% tariffs on Canada take effect as trade talks deadline lapses
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Diverging Reports Breakdown
Trump Tariff News Live: As new levies come into force, POTUS has fresh warning for nations
Trump Tariff News Live: India’s purchases of Russian oil ‘point of irritation’ in bilateral ties with US, says Rubio. Rubio was responding to a question on President Donald Trump’s announcement of the 25 per cent tariff on India and an additional penalty for buying Russian military equipment
India’s purchases of Russian oil are helping to sustain Moscow’s war efforts in Ukraine and it is “most certainly a point of irritation” in New Delhi’s relationship with Washington, US Secretary of State Marco Rubio said on Thursday.
“Look, global trade – India is an ally. It’s a strategic partner. Like anything in foreign policy, you’re not going to align 100 per cent of the time on everything,” Rubio said in an interview with Fox Radio.
Rubio was responding to a question on President Donald Trump’s announcement of the 25 per cent tariff on India and an additional penalty for buying Russian military equipment and energy, and how disappointed Washington is with Delhi because of this. Read more
Trump tariffs live updates: Trump outlines sweeping new tariffs for dozens of trade partners
The White House released new tariff rates for over 70 countries. The new rates range from 15% to 40% on nations from Algeria to Switzerland. But the new rates will not go into effect for seven days, instead of a midnight Friday deadline as originally planned. Some nations were not included in Tuesday’s release, including many nations with which the US currently has a trade surplus.
The move represents a giant shakeup in the US’s trade order, with outlined rates that range from a 35% tariff on Canada (up from 25%) to rates above 30% on nations from Algeria to Switzerland.
But there’s a last minute catch, as these new rates will not go into effect for seven days, instead of a midnight Friday deadline as originally planned — according to the text of the order.
India, after initial high hopes for a deal that have bogged down in recent weeks, is set to face a 25% rate but now appears to have another week to negotiate.
Taiwan is another top US trading partner and is set to see a 20% rate.
The White House documentation released Thursday also confirmed some of the parameters of recent deals including 19%-20% rates on a range of Southeast Asian nations and an unchanged 10% rate on the United Kingdom.
Dozens of other nations also saw their tariff rates upped to 15% from 10% — in line with deals sketched out in recent days that included that headline 15% tariff rate on Europe, South Korea, and Japan.
But some nations were not included in Tuesday’s release — those omitted included many nations with which the US currently has a trade surplus — who therefore are set to see their rates remain at 10%, in a surprise relief for some after comments from Trump in recent days suggested 15% would be his new minimum.
Read more here.
Trump tariffs: Where do we stand as deadline expires – DW – 07
Donald Trump announced on April 2 that he would impose a “baseline tariff” of 10% on all goods imported to the United States. Goods from about 60 other trade partners would face so-called reciprocal tariffs that were even higher. While deals have been made with some major US trading partners, many others are facing the prospect of no deal and increased levies on their exports to the US. Some critics have taken to calling Trump TACO, for Trump Always Chickens Out, mocking his on-again-off-again tariff policies. The US president is holding strong on the deadline for countries that haven’t reached new trade agreements with his administration, but as yet no threat of higher tariffs has been put in place. The UK was the first country to strike a trade deal with Washington in May, while the US is still negotiating exemptions for its steel and aluminium products from the 25% rate in force. The EU has pledged to buy US energy worth $750 billion (€656 billion) and make investments in the US of around $600 billion, according to the White House.
In his election campaign, Donald Trump once said that “tariff is the most beautiful word in the dictionary.” Now, after six months in office, the US president is eager to turn his very specific vision of global trade into reality.
With a move that shocked both politics and business across the world, Trump announced on April 2 that he would impose a “baseline tariff” of 10% on all goods imported to the United States.
In addition, goods from about 60 other trade partners would face so-called reciprocal tariffs that were even higher and meant as payback for the unfair trade policies of what Trump called “the worst offenders.”
While the baseline tariffs came into effect immediately, the US president was forced to postpone the deadline for reciprocal tariffs for 90 days in response to turmoil in the financial markets following April 2.
These are now coming into effect on August 1, with Trump having made abundantly clear that he’s holding strong on the deadline for countries that haven’t reached new trade agreements with his administration.
“IT STANDS STRONG, AND WILL NOT BE EXTENDED,” Trump wrote in an all-caps Truth Social post on Tuesday, adding: “A BIG DAY FOR AMERICA!!!”
While deals have been made with some major US trading partners, many others are facing the prospect of no deal and increased levies on their exports to the United States.
Scores more are somewhere in the middle — with no trade deal signed, but as yet no threat of higher tariffs. Among them are some of America’s closet allies and biggest trading partners, including Australia, Taiwan and New Zealand.
Some critics have taken to calling Trump TACO, for Trump Always Chickens Out, mocking his on-again-off-again tariff policies Image: Mark Schiefelbein/AP Photo/picture alliance
Deals done
Days before the deadline, on July 27, the US and the European Union agreed that European goods imported to the US would face a 15% baseline tariff. This includes the EU’s crucial automobile sector, which had been subject to a 25% levy since Trump took office earlier in January.
By contrast, the EU will charge US firms no duties at all, and has pledged to buy US energy worth $750 billion (€656 billion), as well as make investments in the US of around $600 billion, according to the White House.
The agreement, which still needs to be signed off by all 27 EU members, has already come under strong criticism. French Prime Minister Francois Bayrou said this week the EU had capitulated, describing Sunday as a “dark day.”
Who won, who lost in the US-EU trade deal? To view this video please enable JavaScript, and consider upgrading to a web browser that supports HTML5 video
The United Kingdom was the first country to strike a trade deal with Washington in May.
British products will be subject to a 10% base rate, with exceptions for some industries. The UK is still negotiating exemptions for its steel and aluminium products from the 25% rate in force. In return, the UK had to open its market further to US ethanol and beef.
Under a deal struck in July, Japan’s exports to the US will be taxed at 15%, including automobiles, an industry accounting for 30% of Japanese exports to the US in 2024.
Tariffs of 50% on Japanese steel and aluminium will continue to apply and the White House said that under the deal, Japan would make an unspecified $550 billion investments in the US.
With regard to South Korea, recent negotiations have resulted in a 15% baseline tariff on all imports from that country — down from a threatened 25% for one of the US’s top-10 trading partner and key Asian ally.
Trump said Wednesday that South Korea had also agreed to invest $350 billion in US projects and to purchase $100 billion of liquefied natural gas and other energy products.
Furthermore, South Korea will accept American products, including automobiles and agricultural goods into its markets and impose no import duties on them, he added.
Vietnam is known for being a manufacturing hub for Chinese companies, which exposed it to Trump’s ire Image: Mu Yu/picture alliance
Washington has also concluded trade deals with the Philippines, Vietnam, Indonesia and Pakistan.
Products from the Philippines — a major exporter of high-tech items and apparel — will face a 19% levy. Vietnam was able to lower a threatened reciprocal tariff of 49% under a deal reached in early July. A main exporter of clothing and shoes to the US, Vietnam will see its shipments subject to a 20% tariff.
However, a 40% tariff will be imposed on so-called transshipments — goods manufactured in third countries that use Vietnam to circumvent steeper trade barriers. US goods will not face any tariffs entering Vietnam.
Indonesian exports to the US will be taxed at 19% and, according to Washington, nearly all US goods will be able to enter Indonesia tariff-free.
Pakistan, which was facing a potential 29% tariff under Trump’s April 2 announcement, said Thursday it had struck a deal that would result in lower tariffs, as well as an agreement in which Washington would help develop the country’s oil reserves.
How China outsmarted Europe and the US on rare earths To view this video please enable JavaScript, and consider upgrading to a web browser that supports HTML5 video
China — the world’s second-largest economy — is a special case. Washington and Beijing had raised tariffs on each other’s goods to more than 100% before temporarily lowering rates for a 90-day period. That pause is set to end on August 12.
China has taken an aggressive stance in response to Trump’s brief threat of imposing a 145% levy on imports, retaliating with tariffs of its own on US goods and blocking the sale of vital rare earth minerals and components used by American defense and high-tech manufacturers.
Holdouts face escalation
Brazil is one of the few major economies to run a trade deficit with the United States, meaning Brazil imports more from the US than it exports to the country.
Nevertheless, the US president has threatened to impose a 50% tariff on Brazil’s products because of political differences. Trump called a current trial against former Brazilian President Jair Bolsonaro a “witch hunt,” and has demanded the release of the ultraconservative politician.
Brazil’s current president, Luiz Inacio Lula da Silva, has in turn called Trump an “emperor” and said he didn’t fear publicly criticizing Trump.
Brazilian President Lula da Silva seems bent on escalating the trade war with Trump Image: Igor do Vale/Sipa USA/picture alliance
India, meanwhile, has drawn Trump’s ire for its huge trade surplus with the US and its trade ties with Russia.
As a result, Trump announced on Wednesday that he would impose a 25% tariff on Indian goods, plus an additional “penalty” because of India’s purchase of Russian oil that helps Moscow finance its war in Ukraine.
On his Truth Social platform, Trump also wrote that India “is our friend,” but added its tariffs on US products “are far too high.”
Canada and Mexico — two of the US’ biggest trading partners — haven’t been spared Trump’s tariff threats either, even though trade between the three neighbors is governed by the US-Mexico-Canada (USMCA) trade agreement, negotiated during Trump’s first term in office.
Earlier this month, Trump threatened to raise current tariffs on Mexico from 25% to 30% starting on Aug. 1, saying President Claudia Sheinbaum’s government hadn’t done enough to help secure their shared border.
Many goods certified under the USMCA free-trade pact, however, have remained exempt.
On Thursday, the US president extended Mexico’s current rates for 90 days to allow more time for trade negotiations.
“The complexities of a Deal with Mexico are somewhat different than other Nations because of both the problems, and assets, of the Border, Trump said in a Truth Social post, following a call with Sheinbaum.
Canadian Prime Minister Mark Carney has rescinded a digital tax to foster complex trade talks with the US Image: Adrian Wyld/The Canadian Press/AP Photo/picture alliance
Canadian Prime Minister Mark Carney has been more skeptical about a positive outcome of bilateral trade talks, after Trump threatened to impose a 35% levy on imports not covered by USMCA.
In March, Trump imposed a 25% tariff on Canadian cars and auto parts, adding a 50% levy on steel and aluminium imports in June. The new rate would apply to all other goods.
On Wednesday, Trump said Canada’s decision to back statehood for Palestine would make it “hard for us to make a trade deal with them.”
Edited by: Kristie Pladson
This article was updated following Donald Trump’s announcement to postpone higher tariffs on Mexico for 90 days.
Correction, July 31, 2025: An earlier version of this article misspelled the name of French Prime Minister Francois Bayrou. DW apologizes for the error.
Trump tariffs live updates: Trump outlines sweeping new tariffs for dozens of trade partners
The White House released new tariff rates for over 70 countries. The new rates range from 15% to 40% on nations from Algeria to Switzerland. But the new rates will not go into effect for seven days, instead of a midnight Friday deadline as originally planned. Some nations were not included in Tuesday’s release, including many nations with which the US currently has a trade surplus.
The move represents a giant shakeup in the US’s trade order, with outlined rates that range from a 35% tariff on Canada (up from 25%) to rates above 30% on nations from Algeria to Switzerland.
But there’s a last minute catch, as these new rates will not go into effect for seven days, instead of a midnight Friday deadline as originally planned — according to the text of the order.
India, after initial high hopes for a deal that have bogged down in recent weeks, is set to face a 25% rate but now appears to have another week to negotiate.
Taiwan is another top US trading partner and is set to see a 20% rate.
The White House documentation released Thursday also confirmed some of the parameters of recent deals including 19%-20% rates on a range of Southeast Asian nations and an unchanged 10% rate on the United Kingdom.
Dozens of other nations also saw their tariff rates upped to 15% from 10% — in line with deals sketched out in recent days that included that headline 15% tariff rate on Europe, South Korea, and Japan.
But some nations were not included in Tuesday’s release — those omitted included many nations with which the US currently has a trade surplus — who therefore are set to see their rates remain at 10%, in a surprise relief for some after comments from Trump in recent days suggested 15% would be his new minimum.
Read more here.
Trump tariffs live updates: Trump outlines sweeping new tariffs for dozens of trade partners
The White House released new tariff rates for over 70 countries. The new rates range from 15% to 40% on nations from Algeria to Switzerland. But the new rates will not go into effect for seven days, instead of a midnight Friday deadline as originally planned. Some nations were not included in Tuesday’s release, including many nations with which the US currently has a trade surplus.
The move represents a giant shakeup in the US’s trade order, with outlined rates that range from a 35% tariff on Canada (up from 25%) to rates above 30% on nations from Algeria to Switzerland.
But there’s a last minute catch, as these new rates will not go into effect for seven days, instead of a midnight Friday deadline as originally planned — according to the text of the order.
India, after initial high hopes for a deal that have bogged down in recent weeks, is set to face a 25% rate but now appears to have another week to negotiate.
Taiwan is another top US trading partner and is set to see a 20% rate.
The White House documentation released Thursday also confirmed some of the parameters of recent deals including 19%-20% rates on a range of Southeast Asian nations and an unchanged 10% rate on the United Kingdom.
Dozens of other nations also saw their tariff rates upped to 15% from 10% — in line with deals sketched out in recent days that included that headline 15% tariff rate on Europe, South Korea, and Japan.
But some nations were not included in Tuesday’s release — those omitted included many nations with which the US currently has a trade surplus — who therefore are set to see their rates remain at 10%, in a surprise relief for some after comments from Trump in recent days suggested 15% would be his new minimum.
Read more here.
Source: https://www.axios.com/2025/08/01/trump-tariffs-canada-take-effect-trade-deals