New tariff hikes from Trump administration trigger global response

President Trump’s latest round of tariffs – up to 41% on U.S. imports – brought mixed reactions. Some countries negotiated lower rates, while others missed the August 1 deadline to strike a deal. The new tariffs take effect on August 7.

Markets reacted cautiously. Asian stocks dropped, with South Korea’s Kospi falling nearly 4% after receiving a 15% tariff. The U.S. dollar also weakened against the yen.

Winners and losers

Canada saw its tariff rise to 35%, prompting frustration from Prime Minister Mark Carney, who cited ongoing cooperation on drug trafficking and trade. Switzerland was hit with a 39% tariff, up from an earlier 31%, despite recent talks.

New Zealand continues to push for relief after its rate rose to 15%, while Australia faces a 10% average tariff, lower than others, but still criticized.

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Japan secured a 15% rate after a deal, while Taiwan’s rate dropped from 32% to 20%. President Lai expressed hope for further reductions.

Southeast Asian deals

Cambodia and Thailand both landed 19% tariffs, much lower than initial proposals. Cambodia agreed to zero tariffs on U.S. goods and plans to buy Boeing jets. A ceasefire with Thailand also played a role in securing the deal. Thailand’s finance minister called the result a sign of strong ties with the U.S.

Bangladesh avoided a 35% duty and settled at 20%. Officials said it protected their vital apparel sector while boosting U.S. agricultural imports in return.

Uncertainty lingers, especially for China, as talks this week produced no deal. Trump hasn’t decided whether to extend a pause on tariffs set to expire on August 12.