Washington, Aug 2: US trade partners reacted Friday to President Donald Trump’s executive order that would introduce new tariffs on many of them in seven days, as the global economy and alliances face a fresh test from the president’s trade agenda.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 ahead of Trump’s self-imposed Aug 1 deadline.
Trump also said Thursday he would extend trade negotiations with Mexico for 90 days. But the vast majority of nations are continuing to face uncertainty ahead of the coming deadline.
While a handful of trade deals have trickled in, many details remain hazy, with businesses and manufacturers around the world bracing for heightened operating costs and potential price hikes.
Meanwhile, Trump’s overhaul of US trade policy hasn’t gone unchallenged. Appellate court judges have expressed broad scepticism around the president’s legal rationale for his most expansive round of tariffs.
Switzerland hit with 39% tariff and will try to negotiate
The land of luxury watches, pharmaceuticals and secretive financial services was reeling Friday, Switzerland’s National Day, upon learning it had been slapped with a 39% tariff, although Trump had proposed a 31% rate in April.
The Swiss government said officials will continue to seek a negotiated solution.
âThe Federal Council notes with great regret that, despite the progress made in bilateral talks and Switzerland’s very constructive stance from the outset, the US intends to impose unilateral additional tariffs on imports from Switzerland,â the government said in a post on X.
Trump orders a 35% tariff for goods from Canada, citing a lack of cooperation on illicit drugs
Trump has raised the tariff rate on US imports from Canada to 35% from 25%, effective Friday.
The announcement from the White House late Thursday said Canada had failed âto do more to arrest, seize, detain, or otherwise intercept drug trafficking organisations, other drug or human traffickers, criminals at large, and illicit drugs”.
Trump earlier had threatened to impose the higher tariff on Canada if no deal was reached by Friday, his deadline for reaching trade agreements with dozens of countries.
Canada was not included in Trump’s updated list of tariff rates on other countries announced late Thursday. Those import duties are due to take effect on Aug 7.