A federal appeals court ruled on Friday that most of President Trump’s global tariffs were illegal. The ruling explains the president exceeded his authority in using emergency powers to impose them.

The judges allowed the tariffs to stay in place as the case continues to be adjudicated in a lower court. Friday’s decision from the US Court of Appeals for the Federal Circuit reaffirms an earlier ruling by the Court of International Trade.

Trump responded to the decision on Truth Social, saying “ALL TARIFFS ARE STILL IN EFFECT!” He also called the court “Highly Partisan” and said “with the help of the United States Supreme Court, we will use [tariffs] to benefit our nation.”

The case is expected to eventually make it to the US Supreme Court, and the Trump administration can now decide whether to appeal.

It means the “reciprocal” tariffs Trump unveiled on dozens of US trade partners (which you can see in the graphic below) now face a fresh bout of legal limbo.

Meanwhile, Brazilian President Luiz Inacio Lula da Silva has authorized plans to retaliate against the 50% US tariffs imposed by President Trump, though the Brazilian leader emphasized he is looking to negotiate with the US administration.

Separately, the $800 duty-free loophole ended Friday, with small imported packages to the US facing tariffs of 10% to 50%, depending on their origin.

Meanwhile, Mexico is set to join the US with tariffs and will raise duties on Chinese goods under its 2026 budget plan, Bloomberg reported on Wednesday. The proposal, due next month, targets cars, textiles, and plastics to shield local industries from cheap imports.

US pressure on Mexico stems from Trump’s claim that cheap Chinese goods slip into Mexico before heading north.

Also, Trump’s 50% tariffs on India have now kicked in, a move that experts say could upend a decades-long push by Washington to forge closer ties with New Delhi. Trump added an extra 25% tariff on Indian imports because of the country’s purchase of Russian oil.

The unfolding situations with both India and Mexico are the latest examples of how Trump’s tariffs are pushing countries to choose sides between the US and China.

Read more: What Trump’s tariffs mean for the economy and your wallet

Here are the latest updates as the policy reverberates around the world.

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Trump says India and US very close to finalising trade deal

17 July 2025 Share Save Nikita Yadav BBC News, Delhi Share Save

Getty Images India and the US have been locked in intense trade negotiations for months

Washington and Delhi are “very close” to finalising a trade deal, US President Donald Trump has said, as high-level talks between the two sides continue. “We’re very close to a deal with India where they open it [the market] up,” Trump told reporters at the White house on Wednesday. Later in the day, he reiterated that the deal with India was “very close” when asked about upcoming trade agreements in an interview with broadcaster Real America’s Voice. India and the US have been locked in intense negotiations over the past few months, aiming to reach an agreement before steep tariffs kick in.

Trump had first announced 27% tariffs on Indian goods in 2 April as part of a wider trade policy move. While the tariffs were initially paused until 9 July, the US later extended the deadline to 1 August. An Indian delegation is in the US this week for discussions on the agreement, Reuters reported, citing sources in the Indian government. Last month, a team of Indian officials extended their stay in Washington for another round of talks, raising questions about what was holding up the agreement. Both sides have sounded optimistic about the deal. On Tuesday, Trump signalled a potential breakthrough, saying that the US would gain “access” to the Indian market as part of the agreement. Suggesting that the deal with India was following a similar track to a recent agreement with Indonesia, where Jakarta granted full access to American companies Trump said: “India is basically working along that same line. We are going to have access to India.” Is the ‘big, beautiful’ India-US trade deal in trouble? Indian Commerce Minister Piyush Goyal said this week that talks are progressing at a fast pace. However, a couple of weeks ago, he had cautioned that India did not negotiate trade agreements based on deadlines and would only enter deals that served its national interest.

AFP via Getty Images) Agriculture remains a sticking point in the trade negotiations

Donald Trump has said his administration plans to start sending letters on Monday to US trade partners dictating new tariffs, amid confusion over when the new rates will come into effect.

“It could be 12, maybe 15 [letters],” the president told reporters, “and we’ve made deals also, so we’re going to have a combination of letters and some deals have been made.”

The Trump administration has said letters will go out notifying trading partners without a deal by 9 July of higher tariffs that would take effect on 1 August.

With his previously announced 90-day pause on tariffs set to end on 9 July, the president was asked if the new rates would come into effect this week or on 1 August, as some officials had suggested.

“No, there are going to be tariffs, the tariffs, the tariffs are going to be, the tariffs,” the president began uncertainly. “I think we’ll have most countries done by July 9, yeah. Either a letter or a deal.”

Sensing the confusion, his commerce secretary, Howard Lutnick, jumped in to add: “But they go into effect on August 1. Tariffs go into effect August 1, but the president is setting the rates and the deals right now.”

In April, Trump announced a 10% base tariff rate on most countries and additional duties ranging up to 50%, although he later delayed the effective date for all but 10% duties until 9 July.

The new date of 1 August offers countries a further three-week reprieve but also plunges importers into an extended period of uncertainty because of the lack of clarity around the tariffs.

After the EU and US spent the weekend locked in talks to try to reach a deal before 9 July, hopes were high that the two sides were close to an “agreement in principle”.

The EU trade spokesperson Olof Gill said on Monday that Trump and the European Commission president, Ursula von der Leyen, had held a “good exchange” on Sunday.

“We want to reach a deal with the US. We want to avoid tariffs. We believe they cause pain. We want to achieve win-win outcomes, not lose-lose outcomes,” Gill told reporters at a press briefing in Brussels.

“We’re fully geared up to get an agreement in principle by Wednesday, and we’re firing on all cylinders to that effect,” he added.

In an update on his social media platform Truth Social, Trump said the US would begin delivering “TARIFF Letters, and/or Deals” from noon ET on Monday.

He also threatened an extra 10% levy on the Brics nations (Brazil, Russia, India, China and South Africa) after the bloc’s leaders issued a joint statement on Sunday at a summit in Rio de Janeiro raising “serious concerns about the rise of unilateral tariff” measures, which they said risked hurting the global economy.

Trump wrote: “Any Country aligning themselves with the Anti-American policies of BRICS, will be charged an ADDITIONAL 10% Tariff. There will be no exceptions to this policy.”

The Chinese government said in response that it opposed tariffs being used as a tool to coerce others. Mao Ning, a spokesperson for the Chinese foreign ministry, said the use of tariffs served no one.

Stock markets slipped in Asia on Monday amid the confusion over the actual tariff cutoff point. Japan’s Nikkei lost 0.3%, while South Korean stocks fell 0.7%. MSCI’s broadest index of Asia-Pacific shares outside Japan eased 0.1%.

European stocks were mixed. In the UK, the blue chip FTSE 100 index slipped 0.3%, with Shell and BP the biggest fallers on the back of weaker oil prices. The German Dax index rose by 0.3%, while in France the Cac 40 was broadly flat. The Stoxx Europe 600, which tracks the biggest companies on the continent, was also flat.

Industrial metals dropped, with copper down by 0.6% to $9,808 per tonne on the London Metal Exchange. Aluminium fell by 1.1% to $2,561 a tonne on the exchange, where all major metals were trading lower on Monday morning.

Scott Bessent, the US treasury secretary, told CNN earlier on Sunday that several big announcements of trade agreements could come in the next days, noting that the EU had made good progress in its talks.

The EU is demanding immediate relief from tariffs on cars, which now stand at 29.5%, and reduction of tariffs in steel, as part of a UK-style framework deal that is being negotiated.

Bessent said Trump would also send out letters to 100 smaller countries with whom the US does not have much trade, notifying them that they would face higher tariff rates first set on 2 April and then suspended until 9 July.

Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources.

Newsweek AI is in beta. Translations may contain inaccuracies—please refer to the original content.

Kevin Hassett, director of the National Economic Council, said on Sunday that President Donald Trump’s administration will hold onto its current tariff rates on other countries despite market volatility, describing the measures as “final deals.”

Why It Matters

Since the first introduction in early April, the Trump administration’s tariffs have sparked widespread criticism from both sides of the aisle. They have also triggered sharp declines in financial markets and increased global economic uncertainty, with major indexes falling and international partners warning of reprisals.

Hassett’s statements during his interview appearance on NBC News’ Meet the Press shows that the White House intends to hold steady on its tariffs even as economic data raises concerns about the impact they may have on growth, prices, and job creation as well as lasting consequences for global trade.

What To Know

Hassett confirmed to host Kristen Welker on Sunday that tariffs on America’s largest trading partners—including the European Union (EU), Japan, and South Korea—were “more or less locked in,” covering approximately 55 percent of global gross domestic product (GDP).

“The president will decide what the president decides. But the president likes those deals. The Europeans like those deals, and they’re absolutely historically wonderful deals,” the economic adviser said.

Hasset continued: “We’ve got Europe agreeing to open their markets to our products, so our farmers, our small businessmen, can sell stuff in Europe like they never could before, and they’re letting us charge a 50 percent tariff, which is going to raise maybe about $100 billion a year.”

Asked whether market turmoil could prompt Trump to reconsider or adjust tariff rates, Hassett replied, “No, I would rule it out. Because these are the final deals.”

He dismissed the notion that financial market backlash or investor uncertainty would trigger a policy reversal, saying in part that “the markets have seen what we’re doing and celebrated it.”

Hassett added: “So I don’t see how that would happen.”

These comments come on the heels of Trump dramatically widening the trade war, imposing new tariffs ranging from 10 to 41 percent on 60 countries. Key trading partners lacking bilateral agreements faced sharply higher rates. Meanwhile, Japan, South Korea, and the EU secured negotiated rates.

Meanwhile, the most recent jobs report showed U.S. employers adding 73,000 jobs in July, far lower than expected. This followed a disappointing trend in the latest months, as May and June job gains were also sharply downgraded.

On Thursday, Trump signed an executive order reimposing the “reciprocal tariffs” that were first announced on April 2 or “Liberation Day.”

Markets have reacted negatively, with the S&P 500 closing down 1.6 percent on Friday—the worst drop since May, according to The New York Times.

National Economic Council Director Kevin Hassett speaks to reporters after attending a meeting at the U.S. Capitol Building on April 28 in Washington, D.C. National Economic Council Director Kevin Hassett speaks to reporters after attending a meeting at the U.S. Capitol Building on April 28 in Washington, D.C. Photo by Anna Moneymaker/Getty Images

Deals Made

South Korea will face a 15 percent tariff on its exports to the U.S.

Trump announced a framework deal with Japan on July 22, including a 15 percent tariff on Japanese goods, down from a rate of 25 percent. The president said Japan would invest $550 billion into the U.S. and “open” its economy to American autos and rice.

The U.S. and EU announced a deal on July 27 that includes a 15 percent tariff on 70 percent of EU goods entering the U.S., down from 30 percent.

Trade officials from the U.S. and China, Asia’s largest economy and the world’s second-largest, met for two days in Stockholm last month after which China’s top trade official said the two sides had agreed to work on extending an August 12 deadline. Trump’s tariffs on Chinese goods previously totaled 145 percent and China’s counter-tariffs on U.S. products reached 125 percent.

Under a deal announced on May 8, the United Kingdom will face a 10 percent baseline tariff on its goods while Trump agreed to cut tariffs on British autos, steel and aluminum, among other pledges. The U.K. promised to reduce levies on U.S. products like olive oil, wine and sports equipment.

A July 22 deal with the Philippines includes a 19 percent tariff. Under a July 15 agreement with Indonesia, its goods will face a 19 percent tariff. Vietnamese goods will face a 20 percent U.S. tariff under a deal announced on July 2. U.S. goods will enter Vietnam duty free.

Canada and Mexico

Shortly before the August 1 deadline, Trump said he would enter a 90-day negotiating period with Mexico, one of America’s largest trading partners, with the current 25 percent tariff rates staying in place, down from the 30 percent he had threatened earlier.

For Canada, the tariffs on its U.S.-bound products not covered by the U.S.-Mexico-Canada trade agreement will rise to 35 percent from 25 percent, the White House said, as it blamed the higher tariffs on the smuggling of fentanyl over the northern border. However, Canada rebukes this, saying only tiny amounts of the drug are smuggled into the U.S.

What People Are Saying

President Donald Trump in his executive order on Thursday: “Other 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.”

He continued: “There are also some trading partners that have failed to engage in negotiations with the United States or to take adequate steps to align sufficiently with the United States on economic and national security matters.”

Nate Silver, statistician and author, said in the Silver Bulletin on Sunday: “But for now, Republicans are the incumbent party — and if you ask me, tariffs and an economic slowdown are a far bigger threat to Trump’s political capital than the distractions that often dominate the news cycle from day to day. We have more evidence now that the economy is slowing down, probably because of tariffs. And Trump’s actions on Friday suggest he’s scared to face the consequences.”

Jeffrey Frankel, economist and professor at the Harvard Kennedy School, told Newsweek Saturday: “Regarding policies enacted, Trump’s tariffs may go down in history because the effects will be so bad and, much as the Smoot-Hawley tariff of 1930 did, may teach a generation or two about the harms of tariffs and the value of listening to warnings from professional economists, when they are virtually unanimous.”

What Happens Next?

The tariff rates are set to go into effect on August 7.

Chinese President Xi Jinping meets with U.S. President Donald Trump in Osaka, Japan, June 29, 2019. Xinhua News Agency | Xinhua News Agency | Getty Images

President Donald Trump declared the trade war with China “done” Wednesday, while Commerce Secretary Howard Lutnick said tariffs on Chinese goods will be locked in at the current 55% rate without additional increases. Even if the resolution to the battle with the biggest U.S. foe in Trump’s trade war is real, the damage to the supply chain, the U.S. consumer and the economy will remain, say logistics and retail industry executives. The latest headlines in the trade war come amid a slowdown in orders as the early 2025 period of tariff front-loading ended and firms across the economy prepared for a potential slowdown in the U.S. “I think there’s a chance real numbers will deteriorate soon,” Jamie Dimon, CEO of JPMorgan, the nation’s largest bank, said at a Morgan Stanley event Tuesday, before the Trump administration’s most recent comments. Alan Baer, CEO of logistics firm OL USA, said the existing 55% tariff on Chinese goods will put hundreds, if not thousands, of companies and ultimately jobs at risk. “Very few firms have the pricing power to absorb the tariffs or raise prices to offset the impact,” Baer said. “Ultimately, the consumer pays.” White House officials told CNBC the 55% tariff mentioned in Trump’s social media post comes from the stacking of the Chinese tariffs. This is the minimum rate being paid by U.S. shippers. U.S. importers told CNBC the rate is still way too high to resume full orders. “A 55% tariff from China will substantially cause instability for consumer goods companies that are bringing goods in from China,” said Bruce Kaminstein, a member of NY Angels and founder and former CEO of cleaning products company Casabella. “President Trump recently said he doesn’t want to make T-shirts. Why is he doing this then? Does he want to make spatulas? I don’t think so.” The latest national inflation data released Wednesday showed a smaller-than-expected increase in prices, though volatility is expected with uncertainty about tariff policies remaining. Kaminstein said most companies are working on a 40%-60% gross margin, which will cause either substantial price increases or substantial cutting of expenses to survive, adding stress to the cash flow of these companies. “A reported 55% tariff on our largest supplier of American apparel and footwear, stacked on top of already high MFN and Section 301 rates is not a win for America,” said Steve Lamar, CEO of the American Apparel and Footwear Association. “We’re closely watching for more details, but the reality is this: Nearly all clothes and shoes sold in the U.S. are now subject to elevated tariff rates. These costs will hit American families hard, especially as they get ready for back-to-school shopping and the holiday season. New trade deals that bring lower tariffs can’t come soon enough.”

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The Chinese government has not confirmed the Trump statements beyond saying Tuesday it had agreed to the “Geneva consensus” trade terms worked out earlier this year with the U.S. Trump said in a social media post Wednesday about the deal that it is “subject to final approval” of Trump and Chinese President Xi Jinping. Also on Wednesday, Treasury Secretary Scott Bessent floated the idea of extending trade tariff pauses with countries negotiating in good faith. The tariff uncertainty is also weighing on EU exports bound for the U.S. Lutnick said Wednesday that an EU trade deal would likely come last, partially due to the need to deal with a bloc of countries rather than a single government. Consumer demand, recession fears continue during tariff pauses Freight carriers focused on trade between the U.S. and the EU said they are concerned. Andrew Abbott, CEO of Atlantic Container Lines, a niche ocean carrier on the Europe/US trade lane, told CNBC the pace of exports and imports has been good, but he is worried a major correction is coming because of the tariff uncertainty and lingering fears of a recession. “The transatlantic trade has seen an increase in cargo volume in both directions during the last month, averaging 15% compared to last year,” Abbott said. “An increasing number of our U.S. import customers are expressing fears of reduced sales because of a potential U.S. recession in the second half, so this is weighing heavy on people’s minds.” As a result, Abbott said, many companies are choosing the “wait and see” strategy ahead of any deal being made. The trade headlines and concerns come ahead of an expected increase in orders in July and August, peak season for containers to arrive for the holiday shopping season. But logistics experts say there will be no Covid-level surges at U.S. ports. “Companies pulled in freight to get out of the tariff crosshairs in March, April and May,” said Dean Croke, principal analyst at DAT Freight & Analytics. “Warehouse distribution surged at that time. We are essentially in peak season now.” The first customers to take advantage of the tariff pause window were those with time-sensitive cargo, such as medical supplies, and high-value cargo, such as automotive parts, luxury furniture, and fashion, according to Mike Short, president of global forwarding for CH Robinson. Noah Hoffman, vice president for retail logistics for C.H. Robinson, told CNBC that when he was visiting one of its biggest retail customers last week, “I was only sort of surprised to see jack-o’-lantern dinner plates in their distribution center already.” “We’re four months out and already moving Halloween items to be ready for store delivery the next day,” Hoffman said. “We’re seeing the same thing in our retail consolidation centers, where we’re pulling in seasonal and holiday freight from multiple retail suppliers.” “This is a combination of carryover inventory from last year and freight front-loaded in Q1 to avoid the higher tariffs that were coming in April,” he said. ‘Damage is done’ in trucking After the U.S. agreed to a pause in the trade war with China, plans were made for shipping that will result in “a busy four-week period this summer,” Croke said. But “trucking carriers are worried about the rest of the year,” he added. “The second quarter is normally an important setup quarter for the rest of the year, which drives rates up. This means as of now, they are worried they will play catch-up for the rest of the year.” In the current tariff pause window, there is still time to bring merchandise in from China before the 90-day window closes in mid-August, Hoffman said. “Domestically, we might be moving some of that freight in late June and into July. So, shoppers may have fewer back-to-school items to choose from, but at this point, glow-in-the-dark skeletons and fake vampire teeth will probably make it,” he said.

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The trucking industry, in particular, is facing a variety of challenges. While imports contribute approximately 10% of trucking demand, domestic manufacturing is traditionally the main driver, but demand is down. Produce season, another industry driver, is adding to headwinds due to colder spring temperatures in California and decreased consumer demand. “I think the damage is done this year,” Croke said. “Carriers will struggle to recover this year. The supply chain will not recover until these trade deals are done. When you lose trust, how do you make business decisions when it can be undone in a tweet? You have to expect the worst-case scenario, and anything better than that is an upside. I don’t see how the market recovers.” The trickle-down impact of the lower freight volumes can be seen in intermodal volume, down 7.42% year over year, and truckload volume, down 13.37% year over year. Both the rail and trucking industries make their profits in moving containers. The Ocean TEU Index, which represents the volume of ocean container bookings, shows 2025 is trailing 2024 slightly year over year. Historically, cargo volume has been an early U.S. consumer demand prediction tool.