US President Donald Trump has signed an executive order imposing reciprocal tariffs between 10 per cent and 41 per cent on imports into the United States from 69 trading partners, ahead of a Friday trade deal deadline.
The order, which includes a 25 per cent reciprocal tariff on India, will take effect in seven days, marking the next phase of Trump’s trade strategy, which is expected to challenge the global economy and strain international alliances.
The order said that more trade deals were in the pipeline as it seeks to close trade deficits and boost domestic manufacturing.
“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. 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,” the order signed by Trump said.
Negotiation focus
Hit with a 39 per cent reciprocal tariff, Switzerland said it would push for a “negotiated solution” with the U.S., while Taiwan President Lai Ching-te said the new 20 per cent 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 per cent U.S. tariff it faces.
Trump has issued a separate order for Canada that raises the rate on Canadian goods to 35 per cent from 25 per cent previously, saying Canada had “failed to cooperate” in curbing illicit narcotics flows into the US. The higher tariffs on Canadian goods contrasted sharply with Trump’s decision to grant Mexico a 90-day reprieve from higher tariffs of 30 per cent 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 jobs and diversify exports.
India will face a 25 per cent tariff after talks have reportedly 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. However, New Delhi has vowed to protect the farm sector.
Trump hit Brazil’s exports on Wednesday with a 50 per cent 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.
New Zealand officials said they would lobby for a change from the 15 per cent tariff, an increase from the original 10 per cent baseline announced in April.
Neighbouring Australia has dodged an increase to remain at 10 per cent.