President Donald Trump’s so-called “mutual” tariffs came into effect Thursday, imposing a higher obligation on exports of many national trade partners to the United States
“It’s midnight!!! Billions of dollars of tariffs are flowing in the United States!” Trump wrote on the Truth Social on social media platforms.
In a previous post, Trump said tariffs were targeting “countries that have been using the United States for many years.”
Trump last week – ahead of the August 1 tariff deadline, tariff rates have been readjusted and the deadline has been pushed back to August 7th.
The most steep mission includes a 41% for Syria and a 40% for Laos and Myanmar, but Switzerland faces a 39% tariff after failing in a last-minute scramble for the contract.
This week, Swiss negotiators visited Washington, DC, after which they were surprised to see many, but so far, after they began appearing to agree, they were surprised by the country’s higher rates. An update is scheduled for the Swiss government later on Thursday.
Apart from that, Brazil and India are currently facing 50% of their duties. Although the Brazilian tariffs appear to have begun, according to an executive order signed on Wednesday, India’s fees will now be 25%, rising to 50% later this month. Trump said his tariffs on India are related to the current purchase of Russian oil.
Meanwhile, other countries and regions were able to attack trade agreements with the US. This includes the European Union, Japan and South Korea. All of this faces 15% tariffs.
Others, including China and Mexico, remain in scope. China is currently engaged in something like a trade ceasefire with the US, but previously announced fees for Mexico are suspended.
“This game isn’t over.”
According to Lombard Odier macro strategist Bill Papadakis, Trump’s latest tariff announcement includes a 100% tariff threat on higher missions and tips in India — “This game isn’t over.”
“There have been some optimism builds recently as the overall level of uncertainty has declined,” he told CNBC’s “Europe Early Edition” on Thursday, noting that several deals have been made and that Trump has returned some of his threats.
“But we should not be overly optimistic either,” he warned.
Beat Wittmann, chairman and partner of Zurich-based Porta Advisors, said the keen duties that India and Switzerland face are not a surprise.
“Just looking at how Trump treats his Canadian neighbors, you can imagine everything else. We welcome this new world,” he told CNBC’s “Squawk Box Europe.”
Whitman also weighed in Switzerland as he was in a hurry to lower the tariff rate.
“What should Switzerland do? We live in the world of policymakers and understand that these three other superpowers (China, the EU, the US, and everything else, are all of varying degrees,” he said.
“So the only thing you can do is be short-term incarceration, flexibility and adaptation. But structurally, you have to be stronger and more independent.”
