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2025-08-01 08:22:14
Trump announces baseline reciprocal tariffs of 10% and 15% ahead of deadline: The White House announced Thursday that US President Donald Trump will maintain the global minimum reciprocal tariff rate at 10%, but countries with trade surpluses with the US will face tariffs of at least 15%. The White House announcement came just hours before a midnight deadline. Trump set this deadline last month after suspending country-by-country tariff increases for a second time to allow for negotiations. It's unclear when the new tariffs will take effect. Market reaction in early Asian trading was muted, suggesting investors were unsurprised by Trump's announcement. The Canadian dollar and South African rand were roughly flat, while the Thai baht maintained a slight decline. The Swiss franc also weakened slightly. The White House also announced tariffs for several other trading partners with whom trade deals have yet to be finalized. Some of these were expected, such as the 25% tariff on India. Others included tariffs of 39% and 30% on Swiss and South African products, respectively. Thailand and Cambodia, two countries reportedly involved in last-minute agreements, face 19% tariffs. A senior U.S. government official, speaking on condition of anonymity, said on Thursday that countries would be divided into three categories: countries with a goods trade deficit with the U.S. would have a 10% tariff; countries with agreements with the U.S. or with a small goods trade surplus with the U.S. would have a tariff of about 15%; and countries without an agreement with the U.S. and with a large goods trade surplus with the U.S. would face a higher tariff. The official said other details were still to be announced, including details on increasing tariffs on certain goods that are in transit (i.e., passing through other countries).
