Trump issues new set of steep tariffs, punishes Canada

U.S. President Donald Trump has signed an executive order that introduces a set of new steep tariffs on dozens of countries, as the global economy and alliances face another test from the U.S.' trade agenda.

However, in a minor reprieve that opens the door to further negotiations, the White House said the measures will go into effect in a week for most countries, and not the Friday deadline that the president initially set.

Trump's order issued Thursday night came after a flurry of tariff-related activity in recent days as the White House announced agreements with various nations and blocs before a deadline set by the president for Aug. 1.

The import levies apply to 68 countries and the 27-member European Union and range from a 50% duty for Brazil, 39% for Switzerland, 25% for India, 20% for Taiwan and 15% for Türkiye.

They also include an increase in duties on Canadian imports to 35%, citing a lack of cooperation on illicit drugs. Trump had warned of trade consequences for Canada after Prime Minister Mark Carney announced plans to recognize a Palestinian state at the U.N. General Assembly in September.

Unlike the new levies hitting dozens of other economies, there is no delay and these begin Friday, according to a White House fact sheet.

Trump also said he would extend trade negotiations with Mexico for about three months.

The new tariffs drew expressions of relief Friday from some countries that negotiated a deal or managed to whittle them down from rates announced in April. Others expressed disappointment or frustration over running out of time after hitting Trump's deadline for striking deals with America's trading partners.

Countries not listed in the Thursday night order would be charged a baseline 10% tariff.

The Trump 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.

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, allowing him to avoid congressional approval.

Trump was ebullient as much of the world awaited what he would do.

"Tariffs are making America GREAT & RICH Again," he said Thursday morning on Truth Social.

Other details are still to come, including on the "rules of origin" that will determine what products might face even higher tariffs.

Global shares stumbled, with the STOXX 600 down 1.3% at its lowest in a month. U.S. stock index futures were down 1%, indicating a drop at the start of trade on Wall Street later. Futures tied to Canada's main stock index slipped.

Switzerland, Taiwan, South Africa

EU exports to the United States are set to face tariffs of 15% on most products after both sides struck a deal to avoid a higher 30% level.

European Commission President Ursula von der Leyen said some agricultural products would be exempt under the agreement struck Sunday, though she did not specify which.

But France's President Emmanuel Macron pledged to be "firm" in follow-up talks. "It's not the end of it," Macron told ministers during a Cabinet meeting.

The tariff on Swiss goods marked an increase from the 31% rate the U.S. had been threatening to implement.

Switzerland said it would push for a "negotiated solution" with the U.S. to try to avoid harm to its key pharmaceutical industry.

Taiwan leader Lai Ching-te said the new 20% tariff rate for the island was "temporary" and that he expected to reach a lower figure.

South African 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.

The new tariff on Turkish products marked an increase from 10%, which was announced by Trump as a baseline duty in April.

Despite the hike, Turkish Trade Ministry on Friday said Türkiye was still among a few countries with relatively favorable trade terms.

Trump's original April 2 "Liberation Day" announcement threatened to impose import taxes of up to 50% on nearly 60 countries and economies, including the European Union. Those duties, originally scheduled for April 9, were then postponed twice, first to July 9 and then Aug. 1.

On Wednesday, Trump said on his social media platform Truth Social, "THE AUGUST FIRST DEADLINE IS THE AUGUST FIRST DEADLINE – IT STANDS STRONG, AND WILL NOT BE EXTENDED."

Thursday afternoon, White House representatives – and Trump himself – were still insisting that no more delays were possible. But when Trump signed the order Thursday night imposing new tariffs, the start date of the punishing import taxes was pushed back seven days so that the tariff schedule could be updated.

Canada, Mexico, India

Trump issued a separate order that raises the rate on Canadian goods subject to fentanyl-related tariffs from 25% previously, saying Canada had "failed to cooperate" in curbing illicit narcotics flows into the U.S.

That 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.

Canada's 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 social media platform X.

Carney has already indicated that his country can no longer rely on the U.S. as an ally, and Trump declined to talk to him on Thursday.

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 (USMCA) 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.

"I don't care what India does with Russia. They can take their dead economies down together, for all I care," Trump said on social media on Wednesday.

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.

With the new rate, India may no longer benefit as much from efforts to pivot manufacturing out of China.

Brazil, China, South Korea

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 Aug. 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.

China, which faces a 30% tariff and is charging a 10% retaliatory rate on the U.S., on Friday warned that U.S. protectionism "harms the interests of all parties."

"The Chinese side's opposition to tariffs has been consistent and clear," Foreign Ministry spokesperson Guo Jiakun said, adding: "There is no winner in a tariff war or trade war."

Just days before the tariff deadline, the U.S. and South Korea reached a deal to avert a 25% duty on South Korean goods, bringing the level down to 15% instead.

In making the announcement Wednesday, Trump said the country also committed to $350 billion in investments and to purchase $100 billion worth of liquefied natural gas (LNG) or other energy resources.

The 15% rate matches levels determined from U.S. accords with Japan and the European Union. Tariffs on automobiles will also stay at 15%, Seoul said.