Trump’s tariffs rekindle global trade tensions

South African President Cyril Ramaphosa expressed “concern” over the White House’s updated tariffs that will impose a 30% duty on South African goods bound for the U.S.

Ramaphosa said his country will continue negotiations with Washington toward a trade deal, noting the government is finalizing a package to support companies, producers and workers affected by the levies.

“All applicable exceptions published in the previous US Executive Order are set to remain in force and these exceptions covered products such as copper, pharmaceuticals, semiconductors, lumber articles, certain critical minerals, stainless steel scrap and energy and energy products,” he said.

— Ruxandra Iordache

Washington’s new tariffs regime — which also confirmed rates agreed in recent days with trading partners such as Japan and the EU — “reflect the first results of the EU-US deal, esp. the 15% all-inclusive tariff cap,” according to the 27-nation bloc’s trade chief.

“This reinforces stability for businesses as well as trust in the transatlantic economy. EU exporters now benefit from a more competitive position. The work continues,” Commissioner for Trade and Economic Security Maros Sefcovic said in a social media update.

The EU and White House carried out tumultuous negotiations in recent weeks, which ultimately resulted in a trade agreement on July 27.

— Ruxandra Iordache

U.S. President Donald Trump signed an executive order Thursday that modified “reciprocal” tariffs on dozens of countries, with experts warning more tariff hikes could be on the table.

“Of particular concern is the continued uncertainties [trading partners] will face with new sectoral tariffs coming and possibilities of additional tariffs if the Administration believes countries are not operating in good faith in their implementation efforts,” said Wendy Cutler, a former deputy U.S. trade representative.

“No doubt about it — the executive order and related agreements concluded over the past few months tears up the trade rule book that has governed international trade since WW2. Whether our partners can preserve it without the United states is an open question,” added Cutler, who is also a senior vice president of the Asia Society Policy Institute.

Stephen Olson, senior visiting fellow at ISEAS-Yusof Ishak Institute and a former U.S. trade negotiator, was of the same view: “Don’t assume this is the end of the story … more deals and further tariff increases are almost certain to follow.”

“Countries wishing to trade with the U.S. will now face dramatically higher tariffs that could be further increased at the whim of a president who has shown a disdain for trade rules and agreements, even those he himself has signed,” Olson added.

Read more about the latest tariff announcement here.

— Anniek Bao

Canadian Prime Minister Mark Carney said the U.S. increasing tariffs to 35% on the country had “disappointed” its government. The duties have already come into effect and are the latest escalation in the months-long U.S.-Canada trade conflict.

“While we will continue to negotiate with the United States on our trading relationship, the Canadian government is laser focused on what we can control: building Canada strong,” he said in a statement.

While goods that are covered by the Canada-United States-Mexico agreement will not be affected by tariffs, Carney said.

Other sectors including lumber, steel, aluminium and autos would be “heavily impacted,” he added.

The prime minister also pushed back against the U.S. justifying higher tariffs with cross-border drug flows — an argument Trump has repeatedly made.

— Sophie Kiderlin

Mexico welcomed news it was granted a 90-day reprieve on a U.S. boost to tariffs to 30% on many goods, to allow for further negotiations.

“We avoided the increase of tariffs announced for tomorrow and we prevailed with 90 days to build a large-scale agreement based on dialogue,” Mexican President Claudia Sheinbaum Pardo said in a social media update, according to a CNBC translation, citing a phone call with U.S. President Donald Trump.

— Ruxandra Iordache

Switzerland is assessing the new situation after it was hit with a new 39% tariff rate under U.S. President Donald Trump’s updated trade regime, the Federal Council said on the X social media platform.

“The 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,” it noted.

The council added that it remains in contact with Washington and will continue pursuing a “negotiated solution.”

— Ruxandra Iordache

In Asia, leaders from Taiwan, Cambodia and Japan have reacted to the new tariff rates from U.S. President Donald Trump, with some expressing optimism over lower levy rates.

Some governments, like those of Japan and Thailand, had also promised support to help businesses cope with the impact of the tariffs.

Australia, which received the lowest tariff of 10%, saw its trade minister reportedly hail this as a “vindication” for the government, adding that the country had conducted diplomacy with the U.S. in a “cool and calm” way.

Read more reactions to the Trump tariffs here.

— Lim Hui Jie, Sophie Kiderlin

US President Donald Trump has updated tariff rates for a spate of countries, ramping up trade barriers with some of Washington’s closest trading allies.

Among those hit, Canada has been slapped with a 35%, while Switzerland’s rate is now 39%, while Taiwan faces a 20% duty. Trump had previously announced India would be hit with a 25% rate.

All of the newly unveiled tariff rates come into effect from Aug. 7. 

Mexico has been granted a 90-day extension as negotiators continue trade talks.

— Michael Considine