US President Donald Trump signed an order imposing high tariffs on imported goods from dozens of countries, including Canada, Brazil, India, Taiwan and Switzerland, ahead of the August 1 deadline for new trade deals. The measure is part of his administration's strategy for "reciprocal trade" and reducing the US foreign trade deficit, "Reuters" reports, News.bg reports.
According to the order, the tariffs reach 50% for goods from Brazil, 35% for Canada, 25% for India, 20% for Taiwan and 39% for Switzerland. For the remaining 69 countries without agreements with the US, a rate between 10 and 41% is envisaged, and for all other countries 10%. The measures take effect in seven days, excluding shipments already shipped.
The decision caused a sharp decline in markets. Asian stocks recorded their worst week since April, and the European STOXX 600 index fell by almost 1%. Data from the US Department of Commerce show that the tariffs are already leading to higher prices for consumer goods, with the sharpest increase in furniture and household appliances (1.3% in June).
Canada, subject to 35% tariffs on some goods, including for failing to meet commitments to combat fentanyl trafficking, expressed "deep disappointment". Prime Minister Mark Carney said the country would look for ways to protect jobs and diversify its exports.
Mexico received a 90-day reprieve for some tariffs after a phone call between Trump and Mexican President Claudia Sheinbaum. However, the country remains subject to 50% tariffs on steel, aluminum and copper, as well as 25% on cars.
India faces 25% tariffs after failed talks with Washington over access to the agricultural sector. Delhi has promised to protect its farmers, while the opposition has expressed strong dissatisfaction.
Brazil has also become subject to 50% tariffs after Trump accused the country of "political persecution" of former President Bolsonaro. Some sectors such as aviation and energy are excluded from the measures.
China has until August 12 to finalize a trade deal with the United States, after preliminary steps were taken in May and June to end reciprocal tariffs and a ban on the export of rare earth elements.
Despite criticism and legal challenges, Trump defended his actions, citing the 1977 International Economic Emergencies Act. New customs agreements are expected to be announced in August.