President Donald Trump signed an executive order imposing new tariffs on nations with which the US has trade agreements, confirming rates for partners like the European Union while significantly increasing duties on Canada. The measures, ranging from 10% to 41%, were announced after midnight in Europe but before the US deadline expired. They will not take effect today as initially expected, but on August 7th. Furthermore, new customs duties on goods shipped by sea will remain unchanged until at least October 5, 2025.
A key development is the confirmation of the 15% tariff on the European Union, upholding the agreement struck between Trump and European Commission President Ursula von der Leyen in Scotland, despite earlier European concerns. Japan’s tariff is also confirmed at 15%, and the UK’s at 10%. Canada, however, faces a punitive increase from 25% to 35%, cited by the US as a response to “Ottawa’s continued inaction and retaliation.” Switzerland is penalized with a rate of 39%, higher than previously announced on April 2nd. Ontario Premier Doug Ford urged Canadian Prime Minister Mark Carney not to yield.
Tariffs remain unchanged for India at 25% and South Korea at 15%. The White House list released last night clarifies that imports from all nations will be subject to a baseline 10% tariff, except goods from the 92 countries listed in an annex, which face higher rates. Syria faces the highest rate at 41%. Brazil retains a 10% rate, but a separate order signed by Trump on Thursday afternoon imposed an additional 40% duty on specific Brazilian goods, targeting President Lula in retaliation for the legal proceedings against former President Jair Bolsonaro.
Beyond the country-specific tariffs, Trump’s executive order also establishes a 40% duty on any goods deemed by U.S. Customs and Border Protection to have been “transshipped” to circumvent higher tariffs elsewhere. This primarily targets goods manufactured in China, shipped to another country for repackaging, and then sent to the US.
Markets: Milan Opens Lower, European Bourses Weak**
The Milan stock market opened down, with the benchmark Ftse Mib index falling 0.74% to 40,682 points. European markets started weakly: Frankfurt dropped 1.16%, London declined 0.46%, while Paris was flat.
Markets: Tokyo Closes Down (-0.66%), Chinese Markets Mixed**
The Tokyo Stock Exchange closed the week’s final session lower, weighed down by selling in the technology sector amid the global adjustments to trade agreements under the Trump administration. The Nikkei index fell 0.66% to 40,799.60 points, a loss of 270 points. The yen weakened against the dollar to 148.70 as expectations for a Bank of Japan rate hike faded, while it strengthened against the euro to 169.80.
Chinese markets closed mixed following the widespread news of the US tariff adjustments, now delayed from today to August 7th: the Shanghai Composite fell 0.37% to 3,559.95 points, while the Shenzhen index edged up 0.02% to 2,175.49 points.
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