The U.S. began officially levying higher taxes on imports from dozens of countries Thursday, four months after President Donald Trump first announced plans to impose tariffs on most of the world while seeking new trade agreements across the board.
The White House said that starting just after midnight goods from more than 60 countries and the European Union would face tariff rates of 10% or higher. Products from the European Union, Japan and South Korea will be taxed at 15%, while imports from Taiwan, Vietnam and Bangladesh will be taxed at 20%. Trump also expects places such as the EU, Japan and South Korea to invest hundreds of billions of dollars in the U.S.
The Trump White House is confident that the onset of his broad tariffs will provide clarity about the path of the world’s largest economy. Now that companies understand the direction the U.S. is headed, the administration believes they can ramp up new investments and jump-start hiring in ways that can rebalance the U.S. economy as a manufacturing power.
But so far, economic data has shown a U.S. economy that began flagging after Trump’s initial rollout of tariffs in April.
Here's the latest:
Tariff rate confusion in Japan
Japan’s Prime Minister Shigeru Ishiba told reporters that his country is asking the U.S. government to immediately correct tariffs that are not consistent with their agreement that says no additional tariff is added to items whose tariffs exceed 15%, and that tariffs for other items will be capped at 15%.
Ishiba said Japan’s top tariff negotiator, Ryosei Akazawa, double-checked details of the agreement between Japan and the United States and that the negotiator is now asking the Americans to take immediate steps to correct discrepancies in the presidential order.
Ishiba’s comments come after conflicting messages from top officials.
Chief Cabinet Secretary Yoshimasa Hayashi said earlier there was no discrepancy between Japan and the U.S. about the understanding of the new tariff deal.
But later, the ruling Liberal Democratic Party’s policy affairs chief said the 15% tariff is added on top of existing rates.
South Africa’s leader says he spoke with Trump
South Africa’s leader said he spoke with U.S. President Donald Trump as some African nations hope they can still negotiate tariff rates that threaten to increase unemployment in countries already struggling with high rates of joblessness.
President Cyril Ramaphosa’s office said he and Trump spoke Wednesday ahead of steep 30% tariffs coming into effect on some South African exports to the U.S. on Thursday.
The statement said the two leaders “undertook to continue with further engagements.”
South Africa has said it believes it can still negotiate with the U.S., even after Trump has been especially critical of the country.
The Trump administration said it has stopped aid and assistance to Africa’s most diverse economy over what it calls its anti-white and anti-American policies.
South African neighbors Botswana and Lesotho have also said they still hope to negotiate better tariff rates.
Lesotho, a tiny mountainous country, was threatened with a huge 50% tariff rate before it was reduced to 15%.
It says that is still high enough to threaten thousands of jobs and businesses in its crucial clothing sector, which makes and exports well-known brands like Levi’s and others to the American market.
Swiss tech firms condemn ‘horror scenario’
A leading association of tech companies in Switzerland is decrying a “horror scenario” from 39% U.S. tariffs on Swiss goods that took effect Thursday, lamenting how a “strong commitment” from the Swiss government failed to get the Trump administration to back off.
The association, Swissmem, says tens of thousands of jobs in the wealthy Alpine country are at risk from such high tariffs and the knock-on effect could impact the tourism, healthcare and infrastructure sectors.
“If this horrendous tariff burden persists, the Swiss tech industry’s export business to the U.S. will effectively be dead — especially given the significantly lower tariffs for competitors from the EU and Japan,” Swissmem said in a statement Thursday.
That alluded to 15% tariff rates that the U.S. has set on goods from the European Union and Japan, which would put Swiss tech products at a price disadvantage in the United States.
Swissmem President Martin Hirzel called on the Swiss government to continue to reach out to the U.S. administration, “because the winds in Washington can change at any time.”
Switzerland faces the highest tariffs of any developed country and is surpassed only by Laos, Myanmar and Syria, which are facing rates of 40-41%.
South Korea braces for uncertainty despite deal with U.S.
South Korea’s trade minister warned Thursday of continued trade uncertainty despite a last-minute tariff deal with the Trump administration, calling for swift support for vulnerable sectors and long-term efforts to diversify trade networks and enhance the competitiveness of key industries.
During a meeting with business leaders and trade experts, Hankoo Yeo said South Korea must reset its trade strategy to address the global rise in protectionism, which he called the “new normal,” as participants discussed follow-up measures to last week’s trade deal with the United States, his ministry said.
Under the deal, Washington agreed to cut its reciprocal tariff on South Korea to 15% from the initially proposed 25% and to apply the same reduced rate to South Korean cars, the country’s top export to the United States.
South Korea also agreed to purchase $100 billion in U.S. energy resources and commit $350 billion to U.S. investments, though the two countries have offered differing interpretations of how the investment fund would be structured and managed.
In a separate radio interview, Yeo insisted that South Korea’s major chipmakers—Samsung Electronics and SK Hynix—would be unaffected by the 100% tariffs that Trump has vowed to eventually impose on semiconductor imports.
Yeo said Washington, under the recent tariff deal, agreed to designate Seoul as one of its most favored trade partners, shielding it from such rates.
Swiss officials meet to tackle high tariffs
The Swiss executive branch, the Federal Council, was expected to hold an extraordinary meeting Thursday afternoon after President Karin Keller-Sutter and other top Swiss officials returned from a hastily arranged trip to Washington, which initially appeared to produce few results, in a bid to avert steep 39% U.S. tariffs on Swiss goods.
On her X account, Keller-Sutter posted photos of meetings with U.S. Secretary of State Marco Rubio — with whom her team discussed tariffs and other issues — as well as with American and Swiss business leaders.
Despite Keller-Sutter’s diplomatic push, the United States as of Thursday went ahead with the 39% rate, her office said.
Toyota profit takes a dive
Toyota’s profit plunged 37% in the April-June quarter, the company said Thursday, cutting its full year earnings forecasts largely because of President Trump’s tariffs.
The Japanese automaker said it based its report on the assumption that Trump’s tariffs on exports from Japan, including autos, would be 12.5% starting this month. As of now they stand at 15%.
Toyota said the tariffs cost its quarterly operating profit 450 billion yen ($3 billion). Cost reduction efforts and the negative impact of an unfavorable exchange rate also hurt its bottom line.
“Despite a challenging external environment, we have continued to make comprehensive investments, as well as improvements such as increased unit sales, cost reductions and expanded value chain profits,” Toyota said in a statement that outlined its efforts to minimize the impact of the tariffs.
Analysts say Toyota is likely among the worst hit by the tariffs among global companies, even compared with other Japanese automakers.
Tariffs to affect more than half of Indian exports to the US
A top body of Indian exporters said Thursday the latest U.S. tariffs will impact nearly 55% of the country’s outbound shipments to America and lead to exporters losing long-standing clients.
“Absorbing this sudden cost escalation is simply not viable. Margins are already thin,” S.C. Ralhan, president of the Federation of Indian Export Organisations, said in a statement.
The tariffs effectively impose a cost burden, placing Indian exporters at a competitive disadvantage with countries that have lesser import taxes, he added.
In 2024, the U.S. ran a $45.8 billion trade deficit in goods with India, meaning America imported more from India than it exported, according to the U.S. Census Bureau.
American consumers and businesses buy pharmaceutical drugs, precious stones, and textiles and apparel from India, among other goods.
Modi vows to defend farmers' interests
Prime Minister Narendra Modi on Thursday said India will never compromise the interests of farmers.
“For us, the interests of farmers are a top priority. I know I will have to personally pay a heavy price for it, but I am ready,” Modi said at a conference in what was seen as a message to the U.S. administration, which has been seeking greater access to India’s agriculture and dairy sectors.
India and the U.S. have had five rounds of negotiations on a bilateral trade agreement, but haven’t been able to clinch one so far.
On Wednesday, Trump signed an executive order to place an additional 25% tariff on India for its purchases of Russian oil. The order would go into effect in 21 days and bring the combined tariffs imposed on India to 50%.
Sony profits are up
Japanese entertainment and electronics company Sony said Thursday its profit surged 23% in the last quarter from the year before, as damage from U.S. President Donald Trump’s tariffs was less than it had expected.
Sony raised its forecast for its profit in the full fiscal year until March 2026 to 970 billion yen ($6.6 billion), from an earlier forecast of 930 billion yen ($6.3 billion). The revised projection is still lower than what it earned in the previous fiscal year at 1 trillion yen.
Sony now estimates the impact of the additional U.S. tariffs on its operating income at 70 billion yen ($476 million), much better than the initial estimate of 100 billion yen ($680 million).
