percent

The agency made the announcement as it confronts staffing shortages caused by air traffic controllers who are working unpaid.

The United States Federal Aviation Administration (FAA) will reduce air traffic by 10 percent across 40 “high-volume” markets beginning Friday morning to maintain safety during the ongoing government shutdown, it has said.

The agency made the announcement on Wednesday as it confronts staffing shortages caused by air traffic controllers, who are working unpaid, with some calling out of work during the shutdown, resulting in delays across the country.

FAA Administrator Bryan Bedford said the agency is not going to wait for a problem to act, saying the shutdown is causing staffing pressures and “we can’t ignore it”.

Bedford and Transportation Secretary Sean Duffy said they will meet later Wednesday with airline leaders to figure out how to safely implement the reduction.

Widespread delays

The shutdown, now in its 36th day, has forced 13,000 air traffic controllers and 50,000 Transportation Security Administration officers to work without pay. This has worsened staff shortages, caused widespread flight delays and extended lines at airport security screening.

The move is aimed at taking pressure off air traffic controllers. The FAA also warned that it could add more flight restrictions after Friday if further air traffic issues emerge.

Duffy had warned on Tuesday that if the federal government shutdown continued another week, it could lead to “mass chaos” and force him to close some of the national airspace to air traffic, a drastic move that could upend American aviation.

Airlines have repeatedly urged an end to the shutdown, citing aviation safety risks.

Shares of major airlines, including United Airlines and American Airlines, were down about 1 percent in extended trading.

An airline industry group estimated that more than 3.2 million passengers have been affected by flight delays or cancellations due to rising air traffic controller absences since the shutdown began on October 1. Airlines have been raising concerns with lawmakers about the impact on operations.

Airlines said the shutdown has not significantly affected their business, but have warned bookings could drop if it drags on. More than 2,100 flights were delayed on Wednesday.

On Tuesday, FAA’s Bedford said that 20 percent to 40 percent of controllers at the agency’s 30 largest airports were failing to show up for work.

The federal government has mostly closed as Republicans and Democrats are locked in a standoff in Congress over a funding bill. Democrats have insisted they would not approve a plan that does not extend health insurance subsidies, while Republicans have rejected that.

Beijing says it will not back down in the face of threats, urging the US to resolve differences through negotiations.

China has called United States President Donald Trump’s new tariffs on Chinese goods hypocritical as it defended its curbs on exports of rare earth elements and equipment, while stopping short of imposing additional duties on US imports.

In a lengthy statement on Sunday, China’s Ministry of Commerce said its export controls on rare earths, which Trump had labelled “surprising” and “very hostile”, were introduced in response to a series of US measures since their trade talks held in Madrid, Spain, last month.

“China’s stance is consistent,” the ministry said in a statement posted online. “We do not want a tariff war but we are not afraid of one.”

Trump on Friday retaliated to the Chinese curbs on rare earth exports by announcing a 100 percent tariff on Chinese exports to the US and new export controls on critical software, effective from November 1.

Beijing cited Washington’s decision to blacklist Chinese firms and impose port fees on China-linked ships as examples of what it called “provocative and damaging” actions, calling Trump’s tariff threat a “typical example of double standards”.

“These actions have severely harmed China’s interests and undermined the atmosphere for bilateral economic and trade talks. China firmly opposes them,” the ministry said.

Unlike earlier rounds of tit-for-tat tariffs, China has not yet announced any countermeasures.

Rare earths have been a major sticking point in recent trade negotiations between the two superpowers. They are critical to manufacturing everything from smartphones and electric vehicles to military hardware and renewable energy technology.

China dominates the global production and processing of these materials. On Thursday, it announced new controls on the export of technologies used for the mining and processing of critical minerals.

The renewed trade tensions between the world’s two largest economies also risk derailing a potential summit between Trump and Chinese President Xi Jinping at the Asia-Pacific Economic Cooperation summit in South Korea later this month. It would have been their first face-to-face encounter since Trump returned to power in January.

The dispute has also rattled global markets, dragging down major tech stocks and worrying companies reliant on China’s dominance in rare earth processing.

The European Union’s plan to hike tariffs on steel imported over and above its annual threshold could tip the United Kingdom’s steel industry into its worst crisis in history, industry leaders have warned.

On Tuesday, the European Commission proposed that the 27-member bloc would slash its tariff-free steel import quota by 47 percent to 18.3 million tonnes and would impose a tariff of 50 percent on any steel imported in excess of this amount.

This represents a sharp hike: The EU’s current annual steel import quota stands at 33 million tonnes, and imports above this limit are subject to a 25 percent tariff.

The announcement has rattled the British steel industry, which exports nearly 80 percent of its steel to the EU.

“This is perhaps the biggest crisis the UK steel industry has ever faced,” Gareth Stace, director general of the lobby group UK Steel, said on Tuesday. He described the move as a “disaster” for British steel.

Community, a trade union representing UK steelworkers, said the EU’s proposal represents an “existential threat” to the UK steel industry.

Here’s what we know about the EU’s new levies and why the UK is worried:

Why has the EU announced a tariff hike for steel imports?

The new tariff is expected to come into effect from June 2026, as long as EU countries and the European Parliament approve it.

The EU says it has no choice but to bring in the new tariff as it seeks to protect its own markets from a flood of subsidised Asian steel, which has been diverted by US President Donald Trump’s latest 50 percent tariff on all steel imports to the US.

The EU also wants to protect its steel sector from the challenge of global overcapacity.

In a speech at the European Parliament in Strasbourg on Tuesday, the European Commissioner for Trade and Economic Security, Maros Sefcovic, defended the bloc’s steel tariffs proposal as a move to “protect the bloc’s vital sector” whose steel trade balance has “deteriorated dramatically”.

Sefcovic added that more than 30,000 jobs have been lost since 2018 in the EU’s steel industry, which employs about 300,000 people overall.

While the industry is ailing, he said, other countries have begun imposing tariffs and other safeguards to ensure their own domestic steel industries expand. The Commission’s proposal, therefore, seeks to “restore balance to the EU steel market”.

More succinctly, a senior EU official told The Times newspaper: “My dear UK friends, you have to understand that we have no choice but to limit the total volumes of imports that come into the EU, so this is the logic that we apply clearly. Not acting could result in potentially fatal effects for us.”

The EC’s proposal comes as the bloc’s steel sector faces stiff competition from countries like China, where steel production is heavily subsidised.

China produced more than a billion metric tonnes of steel last year, followed by India, at 149 million metric tonnes, and Japan, at 84 million metric tonnes, according to the World Steel Association, a nonprofit organisation with headquarters in Brussels.

By comparison, said Sefcovic, the EU produces 126 million tonnes per year but only requires 67 percent of this for its own use – “well below the healthy 80 percent benchmark and below profitable levels”.

Moreover, steel production within the EU has declined by 65 million tonnes per year since 2007 – with nearly half of that lost since 2018.

“A strong, decarbonised steel sector is vital for the European Union’s competitiveness, economic security and strategic autonomy. Global overcapacity is damaging our industry,” EC President Ursula von der Leyen said.

The Commission’s industry chief, Stephane Sejourne, told reporters in Strasbourg that “the European steel industry was on the verge of collapse” and said that through the tariffs plan, the Commission is “protecting it [EU’s steel industry] so that it can invest, decarbonise and become competitive again”.

Sejourne added that the Commission’s plan is “in line with our [EU] values and international law”.

Why would the UK bear the brunt of EU steel tariffs?

The EU is the UK’s largest market for steel exports by far. In 2024, the UK exported 1.9 million metric tonnes of steel, worth about 3 billion pounds ($4.02bn) and representing 78 percent of its home-made steel products to the EU.

While the EC’s steel tariffs proposal does not apply to members of the European Economic Area, namely Norway and Iceland, it will apply to the UK and Switzerland. Ukraine will also be exempt from the tariff quota since it is facing “an exceptional and immediate security situation”, according to the EC.

The EU says it is open to negotiations with the UK once it has formally notified the World Trade Organization (WTO) of the new levy. For now, however, uncertainty looms.

Compounding this, the UK also fears being flooded by cheaper, subsidised steel from Asia as both the EU and US markets close their doors to it.

In a statement, UK Steel added: “The potential for millions of tonnes that will be barred from the EU market, to be redirected towards the UK is another existential threat.”

Nicolai von Ondarza, an associate fellow at Chatham House, the London-based policy institute, told Al Jazeera that cheap steel diverted by the EU’s planned tariffs will mostly come from countries like China, “putting additional pressure on its industry”.

The British steel sector is also shouldering Trump’s 25 percent tariff on British steel imports, a global supply glut, and higher energy prices, and has been embattled by job losses in some of its biggest steelworks due to green transition initiatives.

Can the UK negotiate its way out of this?

That is currently its best hope, according to industry leaders.

“We would urge the UK and EU to begin urgent negotiations and do everything possible to prevent the crushing impact these proposals would have on our steel industry,” he added.

Chatham House’s Ondarza told Al Jazeera: “For the UK, the first route is to try to negotiate a carve-out of these EU tariffs. Both the EC and the UK have already signalled willingness to talk. These negotiations are likely to be tricky, but not unlikely that they come to an agreement.”

On his way for a two-day business trip to India, UK Prime Minister Keir Starmer told reporters that his country is “in discussions with the EU” about the proposal.

“I’ll be able to tell you more in due course, but we are in discussions, as you’d expect,” he said.

Meanwhile, Chris McDonald, the UK industry minister, has suggested that retaliatory measures may not be completely off the table.

“We continue to explore stronger trade measures to protect UK steel producers from unfair behaviours,” he told reporters.

If the US caused this, can it help to solve it?

While the EU’s tariffs proposal has led to an outcry in the UK, it is also a measure which seeks to bring the US to the negotiating table, the EC says.

In August, the EU and US agreed a trade deal under which Washington will levy 15 percent tariffs on 70 percent of Europe’s exports to the country. Brussels and Washington have yet to discuss how tariffs would apply to European steel, which still faces a 50 percent tariff under Trump’s new trade regime.

Sefcovic told reporters the Commission’s steel tariffs proposal would be a good foundation to engage with the US and also fight the challenge of overcapacity as “like-minded partners”.

Last month, US President Donald Trump had said he would introduce new tariffs to protect the manufacture of medium- and heavy-duty trucks from outside competition.

United States President Donald Trump has said that all medium- and heavy-duty trucks imported into the country will face a 25 percent tariff rate starting November 1, a significant escalation of his effort to protect US companies from foreign competition.

Trump made the announcement on Monday.

Last month, Trump had said heavy truck imports would face new duties on October 1 on national security grounds, saying the new tariffs were to protect manufacturers from “unfair outside competition” and that the move would benefit companies such as Paccar-owned Peterbilt and Kenworth and Daimler Truck-owned Freightliner.

Under trade deals reached with Japan and the European Union, the US has agreed to 15 percent tariffs on light-duty vehicles, but it is not clear if that rate will be set for larger vehicles.

The Trump administration has also allowed producers to deduct the value of US components from tariffs paid on light-duty vehicles assembled in Canada and Mexico.

Larger vehicles include trucks for delivery, garbage pickup, and public utilities; buses for transit, shuttles, and schools; tractor-trailer trucks; semitrucks; and heavy-duty vocational vehicles.

Impact on allies

The US Chamber of Commerce earlier urged the US Commerce Department not to impose new truck tariffs, noting the top five import sources are Mexico, Canada, Japan, Germany, and Finland, “all of which are allies or close partners of the United States posing no threat to US national security”.

Mexico is the largest exporter of medium- and heavy-duty trucks to the US. A study released in January said imports of those larger vehicles from Mexico have tripled since 2019 to around 340,000 today, according to government statistics.

Under the United States-Mexico-Canada Agreement (USMCA) trade deal, medium- and heavy-duty trucks move free of tariffs if at least 64 percent of a heavy truck’s value originates in North America, via parts like engines and axles, raw materials such as steel, or assembly labour.

Tariffs could also affect Chrysler’s parent company Stellantis, which produces heavy-duty Ram trucks and commercial vans in Mexico. Stellantis had been lobbying the White House not to impose steep tariffs on its Mexican-made trucks.

Sweden’s Volvo Group is building a $700m heavy-truck factory in Monterrey, Mexico, due to start operations in 2026.

Mexico is home to 14 manufacturers and assemblers of buses, trucks, and tractor trucks, and two manufacturers of engines, according to the US International Trade Administration.

Mexico opposed new tariffs, telling the US Commerce Department in May that all Mexican trucks exported to the US have on average 50 percent US content, including diesel engines.

Last year, the US imported almost $128bn in heavy vehicle parts from Mexico, accounting for approximately 28 percent of total US imports, Mexico said.

Trump had imposed a 40 percent US tariff on Brazilian goods in July on top of a 10 percent one earlier even though the United States has a trade surplus with Brazil.

Brazilian President Luiz Inacio Lula da Silva has asked United States President Donald Trump to lift the 40 percent tariff imposed by the US government on Brazilian imports.

The leaders spoke for 30 minutes by phone on Monday. During the call, they exchanged phone numbers in order to maintain a direct line of contact, and President Lula reiterated his invitation for Trump to attend the upcoming climate summit in Belem, according to a statement from Lula’s office.

Shortly after, Trump posted on his Truth Social platform that he had had a good conversation with Lula.

“We discussed many things, but it was mostly focused on the Economy, and Trade, between our two Countries,” Trump said.

He added that the leaders “will be having further discussions, and will get together in the not too distant future, both in Brazil and the United States”.

The Trump administration had imposed a 40 percent tariff on Brazilian products in July on top of a 10 percent tariff imposed earlier. Lula reminded Trump that Brazil was one of three Group of 20 (G20) countries with which the US maintains a trade surplus, according to the Brazilian leader’s office.

The Trump administration has justified the tariffs by saying that Brazil’s policies and criminal prosecution of former President Jair Bolsonaro constitute an economic emergency.

Earlier this month, Bolsonaro was convicted of attempting a coup after losing his bid for re-election in 2022, and a panel of the Supreme Court sentenced him to 27 years and three months in prison.

In September, Trump and Lula had a brief encounter at the sidelines of the UN General Assembly in New York, with Trump hailing their “excellent chemistry”.

During Monday’s call, Lula also offered to travel to Washington to meet with Trump, his office said.

MillerKnoll (MLKN -4.42%) reported first-quarter fiscal 2026 results on September 23, 2025, with consolidated net sales of $956 million, up 10.9% year over year, and adjusted earnings per share (EPS) rising 25% to $0.45. The quarter featured strong execution in contract segments, ongoing tariff headwinds, and an accelerated U.S. retail expansion.

The following insights highlight key drivers and risks shaping the long-term investment thesis.

Gross margin expansion signals improved execution

Gross margin reached 38.5% despite $8 million in net tariff-related costs, and adjusted operating margin in North America Contract expanded 200 basis points year over year to 11.4%. The company generated $9 million in operating cash flow, ended the period with $481 million in liquidity, and maintained a net debt to EBITDA ratio of 2.92 turns, well below covenant thresholds.

“In the first quarter, we generated adjusted earnings of $0.45 per share, significantly outperforming the midpoint of our guidance and 25% ahead of prior year, driven by better than expected sales and strong gross margin performance that benefited from leverage on our sales growth. Consolidated net sales in the first quarter were $956 million, above the midpoint of our guide. Versus prior year, net sales were up 10.9% on a reported basis and up 10% organically, driven by strength in all segments of the business.”
— Kevin Veltman, Interim Chief Financial Officer

This margin outperformance demonstrates management’s ability to drive profitable top-line growth and cost discipline in a challenging macro and tariff environment, reinforcing MillerKnoll’s business model resiliency.

Retail expansion and new products fuel growth

MillerKnoll opened four new retail stores in North America and plans to open a total of 12 to 15 U.S. locations in fiscal 2026, aiming to more than double its DWR (Design Within Reach) and Herman Miller store footprint over several years. New product launches accounted for more than 20% year-over-year order growth in retail, with North America web traffic up 17% and net sales in the region up 7% year over year.

“For the full fiscal year, we anticipate opening a total of 12 to 15 new stores in the U.S., as we execute on our strategy to more than double our DWR and Herman Miller store footprint over the next several years. Onto our retail assortment expansion initiatives. This year, we’re launching 50% more product newness than we did in fiscal 2025. And new product is already positively impacting our performance with new product order growth of over 20% in the quarter. This bodes well for the future.”
— Andi Owen, Chief Executive Officer

This aggressive cadence of retail expansion and product innovation indicates MillerKnoll’s prioritization of omni-channel growth and customer acquisition, supporting a long-term growth thesis.

Pricing actions and tariff mitigation protect margins

Net tariff-related expenses reduced gross margin by $8 million and are expected to pressure next quarter’s results by $2 million to $4 million. Management asserts that mitigation measures, including surcharges and price increases introduced in June, will restore margin in the second half of the fiscal year.

The company’s backlog declined $67 million to $691 million, as previously signaled due to fourth-quarter order pull forwards triggered by announced tariff surcharges and list price changes.

“The point of the net is to say we’ve been working on pricing. We put a surcharge in place. We had a price increase in June as well. And the way it works for us is those take a little while to flow through back and through our contracts with customers. So the net impact in the short term is the $8 million that we called out from a pressure perspective. We expect that to be less in Q2, $2 million to $4 million of net impact. And then when we get into the back half of the year, we believe our pricing mitigation actions will be offsetting those costs based on the current tariff environment.”
— Kevin Veltman, Interim Chief Financial Officer

Effective pricing and mitigation strategies are critical to offsetting external cost pressures and maintaining profitability as tariffs persist.

Looking ahead

Management expects net sales between $926 million and $966 million, gross margin of 37.6% to 38.6%, and adjusted EPS between $0.38 and $0.44 for the next quarter. Tariff impacts are forecast to reduce gross margin by $2 million to $4 million, but company actions are anticipated to fully offset these costs in the second half of the year. No full-year margin or EPS guidance was provided due to macro uncertainty.

Daktronics(DAKT 24.18%) reported fiscal first quarter ended August 2, 2025, results on September 10, 2025, delivering net income of $16.5 million and 35% year-over-year order growth, with backlog rising to $360 million and operating cash flow up 34% year-over-year. Key highlights included winning all three major league live event projects bid in the quarter, achieving record high school segment orders, and continued execution of a multi-year business and digital transformation. The following analysis examines Daktronics’ sustained gross margin expansion, robust capital deployment, and advancing transformation initiatives—each with concrete implications for long-term investors.

Gross margin expansion benefits from mix and operational leverage

While the quarter included a favorable revenue mix led by high-profit segments such as High School Park and Recreation (HSPR), margin gains were also supported by improved cost controls and volume-driven fixed cost absorption. Tariffs contributed a $6 million headwind compared to $1 million in fiscal Q1 2025.

“We did have a mixed benefit as I alluded to. So you know, going forward, it depends on the mix is gonna look like. And know, we’ll have to see about that. We did as Brad mentioned, continue to have better alignment between particularly, our manufacturing expenses and revenue production. That helped, and that’s, you know, where we intend to operate going forward. We had a small benefit this quarter. I shouldn’t say benefit. We had a benefit. We had a cost a year ago in the margin from some unusually high warranty expenses, which normalized this quarter. So it’s a little bit of that. But yeah, I mean, you know, what we saw in the quarter was a combination of kind of fixed cost leverage on revenue as well as the mix effect that I just mentioned.”
— Howard Atkins, Acting Chief Financial Officer

Sustained margin strength demonstrates that Daktronics’ ongoing operational initiatives are counteracting tariff headwinds and normalizing warranty costs.

Daktronics accelerates capital deployment and balance sheet strength

Fiscal first quarter-end cash of $137 million increased 7% year-over-year, even after $10.7 million in share repurchases at $16.43 per share; no debt was drawn against the company’s credit line. Operating cash flow surged to $26 million, while inventory-to-sales stood at 49% as management positions for strong order fulfillment ahead.

“We ended the first quarter with a cash balance of $137 million an increase of 7% from 2025 and that’s after taking into account $10.7 million worth of shares repurchased in the quarter and the conversion of the convertible note since last year. Our operating cash flow is $26 million up 34% on solid earnings and the completion of our initiative to better utilize spare inventory. Inventory to sales ratio is now at 49%. Inventory levels are likely to increase somewhat. Perhaps as we position for fulfillment of the high backlog. As mentioned, we repurchased $10.7 million worth of shares in the quarter at a volume-weighted average price of 16.43 We have had no borrowings, of course, under the company’s bank line of credit, and none are contemplated.”
— Howard Atkins, Acting Chief Financial Officer

Controlled capital allocation, demonstrated by growing cash and significant buybacks without increasing leverage, provides Daktronics with ample flexibility for continued strategic investment, opportunistic share repurchases, or selective M&A, enhancing long-term shareholder value.

Transformation plan drives operating progress and targets premium financial returns

Daktronics is executing a multi-year transformation blending value-based pricing, focused product innovation, and digital upgrades in operations and service. IT and product development spending reached $17.2 million, supporting efforts to advance corporate performance management, subscription platforms, and new product releases.

“We are targeting performance aligned with higher operating margins of 10% to 12% on average over time, operating in the top quartile ROIC target of 17% to 20%, and achieving a compound annual growth rate of seven to 10% by fiscal year 2028. Our plan is in place. We’re executing on it, and we have work to do. The team is committed to its success. We remain on track with the many, many objectives initiatives and most importantly, on track with our growth and margin objectives.”
— Howard Atkins, Acting Chief Financial Officer

Pursuit of top-quartile return on invested capital (ROIC) and double-digit margin targets—with clear investment in digital, SaaS, and new products—signals a probability of sustained value creation if execution stays on pace, directly supporting a long-term compound earnings growth thesis.

Looking Ahead

For fiscal 2026, management projects sustained robust demand across core segments and points to a sizable order backlog of $360 million as a revenue tailwind for future periods, while maintaining vigilance on tariff volatility and supply chain constraints. Transformation targets remain in place: achieving average operating margins of 10%-12%, ROIC of 17%-20%, and 7%-10% compound annual growth rate (CAGR) through fiscal 2028. No updated quantitative short-term guidance was provided this quarter.

Washington’s move to double tariffs on many Indian goods poses a huge risk to India’s biggest export market.

The United States has doubled tariffs on many imports from India to 50 percent, as US President Donald Trump followed through on his threat to punish New Delhi for buying discounted Russian oil.

The steep tariffs, which came into force on Wednesday, risk inflicting significant damage on the Indian economy by threatening trade with its largest export market. India exported more than $87bn worth of goods to the US in 2024.

The Indian government, which has criticised the move as “unfair, unjustified and unreasonable”, estimates the tariffs will impact more than $48bn worth of exports. Indian officials warn that the new duties could make exports to the US commercially unviable, leading to job losses and slowing growth in the world’s fifth-largest economy, The Associated Press news agency reported.

The US had already slapped 25 percent tariffs on Indian goods earlier this month, as part of a wave of additional duties on goods from allies and competitors alike since Trump returned to the White House.

But the latest hike on Indian products doubles that rate, in a move to punish New Delhi for buying Russian oil, which the White House argues is indirectly funding Russia’s war on Ukraine.

More than one-third of India’s crude oil imports came from Russia last year, a trade relationship that has spurred criticism from Washington. Trump’s trade adviser, Peter Navarro, told reporters last week that “India doesn’t appear to want to recognise its role in the bloodshed” in Ukraine.

The move leaves Indian exporters facing among the highest US duties Trump has slapped on goods from overseas. Brazil is also grappling with 50 percent tariffs on many of its exports to the US.

‘Strategic shock’

Garima Kapoor, Executive Vice President and Economist at Elara Securities, told Al Jazeera that the impact would likely be felt in labour intensive industries such as textiles, garments, gems and jewellery, marine exports, some auto exports and leathers.

“All of these categories … are small and medium scale enterprise intensive. So we will see an impact being pretty severe in terms of employment.”

A New Delhi-based think tank, Global Trade Research Initiative (GTRI), says the tariffs could eliminate India’s presence in the US.

“The new tariff regime is a strategic shock that threatens to wipe out India’s long-established presence in the US, causing unemployment in export-driven hubs and weakening its role in the industrial value chain,” Ajay Srivastava, GTRI founder and former Indian trade official, told the AP.

The US has, for now, exempted some key sectors, such as pharmaceuticals and electronic goods, from additional tariffs. The Trump administration has launched investigations into these and other sectors that could yet result in further duties.

The tariffs come as the Trump administration pushes for greater access to India’s agriculture and dairy sectors, amid Indian resistance to opening the sectors to cheaper US imports.

Prime Minister Narendra Modi has said India should not yield to the pressure.

“For me, the interests of farmers, small businesses and dairy are topmost. My government will ensure they aren’t impacted,” Modi said at a rally this week in his home state of Gujarat.

The extraordinary development follows a meeting between CEO Lip-Bu Tan and Trump after he called for Tan’s removal.

The United States government will take a 10 percent stake in Intel under an agreement with the struggling chipmaker, President Donald Trump has said, marking the latest extraordinary intervention in corporate affairs.

Trump made the announcement on Friday. Intel, whose shares rose more than 6 percent, declined to comment.

The development follows a meeting between CEO Lip-Bu Tan and Trump earlier this month that was sparked by Trump’s demand for the Intel chief’s resignation over his ties to Chinese firms.

“He walked in wanting to keep his job and he ended up giving us $10bn for the United States,” Trump said on Friday.

The move marks a clear change of direction and also follows a $2bn capital injection from SoftBank Group in what was a major vote of confidence for the troubled US chipmaker in the middle of a turnaround.

Federal backing could give Intel more breathing room to revive its loss-making foundry business, analysts said, but it still suffers from a weak product roadmap and challenges in attracting customers to its new factories.

Trump, who met Tan on August 11, has taken an unprecedented approach to national security.

The US president has pushed for multibillion-dollar government tie-ups in semiconductors and rare earths, such as a pay-for-play deal with Nvidia and an arrangement with rare-earth producer MP Materials to secure critical minerals.

Tan, who took the top job at Intel in March, has been tasked to turn around the US chipmaking icon, which recorded an annual loss of $18.8bn in 2024 — its first such loss since 1986. The company’s last fiscal year of positive adjusted free cash flow was 2021.

Earlier this week, US Senator Bernie Sanders supported the plan. He and Senator Elizabeth Warren had previously said that the US Treasury Department should receive a warrant, equity stake or senior debt instrument from any company that receives government grants like Intel had under the 2022 CHIPS and Science Act, which sought to lure chip production away from Asia and boost US domestic semiconductor output with $39bn in subsidies.

A formal announcement of the investment is expected later on Friday.

Violence remains widespread in Haiti, where powerful armed gangs have surged amid political and economic chaos.

The United Nations has said that efforts to address widespread economic and political dysfunction and debilitating violence in Haiti are falling far short, with a UN response plan receiving the lowest funding of any in the world.

In a briefing on Tuesday, coordinator Ulrika Richardson said that the UN hopes to raise more than $900m for Haiti this year, but that effort is just 9.2 percent funded.

“We have tools, but the response from the international community is just not at par with the gravity on the ground,” Richardson said.

The lacklustre funding numbers underscore concerns over flagging international efforts to assist the Caribbean island nation, which is reeling from violence as powerful armed gangs jostle for control of territory and resources amid political and economic instability.

Richardson said that a $2.63bn appeal for Ukraine is 38 percent funded and that a $4bn appeal for the occupied Palestinian territories is 22 percent funded, by comparison.

More than 1.3 million people have been displaced by the violence in Haiti, and more than 3,100 people have been killed this year.

Armed gangs, some with links to powerful political and economic figures, have taken control of large swathes of the capital of Port-au-Prince since the assassination of former president Jovenel Moise in July 2021.

The UN has said that cutting off the supply of arms pouring into the country, largely smuggled from the US state of Florida, is a key step towards staunching the violence, along with applying sanctions on networks connected to the gangs.

“Haiti can quickly spiral up again, but the violence needs to end,” said Richardson.

But international efforts to address the fighting thus far have little to show, and some Haitians are sceptical of such efforts given a long history of destructive interventions by outside powers.

A UN-backed policing mission, staffed largely by Kenyan security officers, has failed to bring stability to the country or tackle the gangs. Haiti’s government also declared a three-month state of emergency earlier this month, covering the West, Centre and Artibonite departments of the country.

Even as the United States slaps India with a 50 percent tariff, the highest among all countries so far and one that will push their relationship to its lowest moment in years, one thing is clear: US President Donald Trump is more interested in onshoring than friend-shoring, experts say.

On Wednesday, the US announced an additional 25 percent tariff on India over its import of Russian oil, taking the total to 50 percent. The move caught most experts by surprise as New Delhi was one of the first to start trade negotiations with Washington, DC, and Trump and Indian Prime Minister Narendra Modi have repeatedly admired each other in public statements and called each other friends. Brazil is the only other country facing tariffs as high as India’s.

“The breakdown of the trade negotiations was a surprise,” said Vina Nadjibulla, vice president of strategy and research at the Asia Pacific Foundation of Canada.

“This is a very difficult moment, arguably the worst in many, many years in their relationship and puts India in a very small group of countries that find themselves without a deal and with the highest tariff rates. They now need some pragmatic path forward and need to find a way to rebuild trust,” Nadjibulla said.

While the 50 percent tariffs, set to kick in in three weeks, have come as a shock, there has been a series of events in the past few weeks that hinted at disagreements between the two countries.

Just last week, Trump threatened that he would penalise New Delhi for buying Russian oil and arms, venting his frustration over an impasse in trade talks and referred to both countries as “dead economies”.

Negotiations deadlock

Last year, bilateral trade between India and the US stood at approximately $212bn, with a trade gap of about $46bn in India’s favour. Modi has said in the past that he plans to more than double trade between the two countries to $500bn in the next five years.

As part of the tariff negotiations, New Delhi had offered to remove levies from US industrial goods and said it would increase defence and energy purchases, the Reuters news agency reported. It also offered to scale back taxes on cars, despite a strong auto lobby at home pressuring it not to.

But it refused to remove duties from farm and dairy products, two politically sensitive sectors that employ hundreds of millions of predominantly poor Indians, and a stance similar to some other countries like Canada.

There are also geopolitical layers to what was supposed to be a trade conversation, pointed out Farwa Aamer, director of South Asia Initiatives at the Asia Society Policy Institute in New York.

A very public one was the difference in perception on how the latest clash between India and archenemy Pakistan in May was brought to an end. Trump has repeatedly said that he mediated a ceasefire. India has repeatedly said that Trump had no role in bringing about a truce and has said that Modi and Trump never spoke during the conflict.

Pakistan, on the other hand, has said it will nominate Trump for the Nobel Peace Prize and has so far walked away with deals with the US to explore its reserves of critical minerals and oil as its efforts to reset ties with the US play out after years of ambivalence under former US President Joe Biden, said Aamer.

All of this has caused unease for New Delhi, which is now trying to navigate a tough road. “This will test India’s foreign policy,” said Aamer, “and the question is if we will see it grow with the US even as it maintains its ties with Russia,” its longstanding defence and trade partner.

New Delhi has called Wednesday’s tariff “unfair, unjustified and unreasonable” and said its imports of Russian oil are based on its objective of securing the energy needs of its nation of 1.4 billion people.

But beyond that, “India doesn’t want to look weak”, said Aamer. “India has this global standing, and Modi has this global standing, so it has to hold its own. It will maintain its stance that its national security is driving its foreign policy.”

Robert Rogowsky, a professor of international trade at the Middlebury Institute of International Studies at Monterey, said he expected “very creative diplomacy” in the “near term” as India and the US try to reset ties despite tensions.

“Strong-arming individuals like Modi will inevitably lead to shifts and counter-shifts,” he told Al Jazeera.

Adding instability

For now, India can focus on strengthening its bilateral trade agreements, said Aamer, such as the one it signed with the United Kingdom last month and another with the European Union, which is currently in the works.

India is also trying to stabilise relations with China –  just as Australia, Canada and Japan have done in recent months since Trump took office and hit allies with tariffs. Modi is planning to attend the Shanghai Cooperation Organisation summit at the end of the month. It would be his first visit to China since the two countries had a face-off in 2020 in the Galwan River valley.

But the trade blow from the US also comes at a time when India has been trying to position itself as a manufacturing hub and as an option for businesses that were looking to add locations outside China.

In April, Apple, for instance, said all iPhones meant to be sold in the US would be assembled in India by next year. While electronics are exempt for now from the tariffs, a country with a 50 percent tariff tag on it is hardly attractive for business, and this just “adds to the instability and uncertainty that businesses were already feeling” because of all the Trump tariffs, Nadjibulla said.

“Trump has made it clear that he’s interested in onshoring rather than friend-shoring.”

US President Donald Trump said the tariff will not impact companies if they have already invested in US facilities.

United States President Donald Trump says he will impose a 100 percent tariff on foreign-made semiconductors, although exemptions will be made for companies that have invested in the US.

“We’ll be putting a tariff on of approximately 100 percent on chips and semiconductors, but if you’re building in the United States of America, there’s no charge, even though you’re building and you’re not producing yet,” Trump told reporters at the Oval Office on Wednesday evening.

The news came after a separate announcement that Apple would invest $600bn in the US, but it was not unexpected by US observers.

Trump told CNBC on Tuesday that he planned to unveil a new tariff on semiconductors “within the next week or so” without offering further details.

Details were also scant at the Oval Office about how and when the tariffs will go into effect, but Asia’s semiconductor powerhouses were quick to respond about the potential impact.

Taiwan, home of the world’s largest chipmaker TSMC, said that the company would be exempt from the tariff due to its existing investments in the US.

“Because Taiwan’s main exporter is TSMC, which has factories in the United States, TSMC is exempt,” National Development Council chief Liu Chin-ching told the Taiwanese legislature.

In March, TSMC – which counts Apple and Nvidia as clients – said it would increase its US investment to $165bn to expand chip making and research centres in Arizona.

South Korea was also quick to extinguish any concerns about its top chipmakers, Samsung and SK Hynix, which have also invested in facilities in Texas and Indiana.

Trade envoy Yeo Han-koo said South Korean companies would be exempt from the tariff and that Seoul already faced “favourable” tariffs after signing a trade deal with Washington earlier this year.

TSMC, Samsung and SK Hynix are just some of the foreign tech companies that have invested in the US since 2022, when then-President Joe Biden signed the bipartisan CHIPS Act offering billions of dollars in subsidies and tax credits to re-shore investment and manufacturing.

Less lucky is the Philippines, said Dan Lachica, president of Semiconductor and Electronics Industries in the Philippines Foundation.

He said the tariffs will be “devastating” because semiconductors make up 70 percent of the Philippines’ exports.

Trump’s latest round of blanket tariffs on US trade partners is due to go into effect on Thursday, but the White House has also targeted specific industries like steel, aluminium, automobiles and pharmaceuticals with separate tariffs.

US president and his EU counterpart strike sweeping 15 percent tariff deal to stabilise transatlantic trade.

The United States and European Union have reached a sweeping trade agreement, setting a 15 percent tariff on most goods, averting a major transatlantic trade war that could have rattled global markets.

The announcement came after a private meeting on Sunday between US President Donald Trump and European Commission President Ursula von der Leyen at Trump’s Turnberry golf resort in Scotland.

The deal comes just days before Washington was due to impose 30 percent tariffs on EU imports.

“It was a very interesting negotiation. I think it’s going to be great for both parties,” Trump told reporters. He added that it was “a good deal for everybody… a giant deal with lots of countries”.

Von der Leyen welcomed the deal, saying it would “bring stability; it will bring predictability that’s very important for our businesses on both sides of the Atlantic”.

Trump claimed the EU committed to buying about $750bn worth of US energy, increasing investment in the United States by another $600bn and placing a large order for military equipment. Both leaders confirmed that the agreed tariff rate of 15 percent would apply broadly to automobiles and other goods.

“We have the opening up of all of the European countries,” Trump said. Von der Leyen echoed that, noting that the 15 percent rate was “across the board, all inclusive” and that the European market was effectively now open.

The talks followed months of tense back-and-forth with Trump, who has long accused the EU of unfair trade practices. Just before negotiations began, he called the existing arrangements “a very one-sided transaction; very unfair to the United States”.

Von der Leyen pointed to the combined economic might of the two powers, describing their trade volume as the world’s largest, encompassing “hundreds of millions of people and trillions of dollars”.

She acknowledged Trump’s “tough” reputation as a negotiator, to which he replied: “But fair.”

Trade conflict averted

Earlier this month, negotiations appeared close to collapse when Trump threatened to proceed with the 30 percent tariff unless the EU matched the 15 percent terms he recently struck with Japan. Asked if he would accept anything lower, Trump flatly said, “No”.

Had no agreement been reached, Brussels had prepared a long list of retaliatory tariffs targeting everything from beef and beer to Boeing aircraft and car parts.

German Chancellor Friedrich Merz said that the US-EU deal was a positive move that helped avoid a trade war and a serious blow to the auto sector.

“This agreement has succeeded in averting a trade conflict that would have hit the export-orientated German economy hard,” he said in a statement. “This applies in particular to the automotive industry, where the current tariffs of 27.5 percent will be almost halved to 15 percent.”

Italian Prime Minister Giorgia Meloni said it was “positive” that a trade deal had been reached; however, she needed to see the details, Italian news agency ANSA reported.

Trump and United Kingdom Prime Minister Kier Starmer are expected to meet on Monday, with trade also on the agenda. While a separate US–UK trade framework was unveiled in May, Trump insists the broader agreement is already concluded, though the White House admits some elements remain unfinished.

Trump will travel to Aberdeen on Tuesday to help open a third golf course under the family name. He and his sons are expected to cut the ribbon themselves.

The new deal comes as the Southeast Asian country plans to buy 50 Boeing jets, according to US President Donald Trump.

The United States has struck a trade deal with Indonesia resulting in significant purchase commitments from the Southeast Asian country, following negotiations to avoid steeper US tariffs.

US President Donald Trump announced the new deal on Tuesday.

The agreement imposes a 19 percent tariff on Indonesian goods entering the US, Trump said in a post on his Truth Social platform.

Under the deal, which was finalised after Trump spoke with Indonesian President Prabowo Subianto, goods that have been transshipped to avoid higher duties will face steeper levies.

“As part of the Agreement, Indonesia has committed to purchasing $15 Billion Dollars in US Energy, $4.5 Billion Dollars in American Agricultural Products, and 50 Boeing Jets, many of them 777’s,” Trump wrote.

In a separate post earlier on Tuesday, Trump touted the finalised pact as a “great deal, for everybody”.

Boeing stock remained relatively flat on the announcement.

Last week, Trump renewed his threat of a 32 percent levy on Indonesian goods, saying in a letter to the country’s leadership that this level would take effect August 1.

It remains unclear when the lower tariff level announced Tuesday will take effect for Indonesia. The period over which its various purchases will take place was also not specified.

Lagging on trade agreements

The Trump administration has been under pressure to wrap up trade pacts after promising a flurry of deals recently, as countries sought talks with Washington, DC to avoid Trump’s tariff plans.

When Trump first postponed tariffs on April 2, the White House said it would have 90 deals in 90 days. But the US president has so far only unveiled other deals with Britain and Vietnam, alongside an agreement to temporarily lower tit-for-tat levies with China.

He separately told reporters that other deals are in the works including with India, while talks with the European Union are continuing.

Indonesia’s former Vice Minister for Foreign Affairs Dino Patti Djalal told a Foreign Policy magazine event on Tuesday that government insiders had indicated they were happy with the new deal.

Trump in April imposed a 10 percent tariff on almost all trading partners, while announcing plans to eventually hike this level for dozens of economies, including the EU and Indonesia.

Last week, days before the steeper duties were due to take effect, he pushed the deadline back from July 9 to August 1. This marked his second postponement of the elevated levies.

Instead, since early last week, Trump has been sending letters to partners, setting out the tariff levels they would face come August.

So far, he has sent more than 20 such letters, including to the EU, Japan, South Korea and Malaysia. Canada and Mexico, both countries that were not originally targeted in Trump’s “reciprocal” tariff push in April, also received similar documents outlining updated tariffs for their products.

The 27-member bloc says Washington’s latest threats against its exports are ‘absolutely unacceptable’.

The European Union has promised to take countermeasures against the United States if the administration of US President Donald Trump introduces 30 percent tariffs on imports from the bloc next month.

After ministers met in Brussels on Monday to discuss the tariff threat Trump issued over the weekend, the EU’s trade representative Maros Sefcovic said such a move by Washington would be “absolutely unacceptable”.

Sefcovic said the 27-nation bloc, which is the US’s largest business partner, wanted to reach an agreement through negotiations.

“I’m absolutely 100 percent sure that a negotiated solution is much better than the tension which we might have after August 1,” he told reporters in Belgium, adding that “we must be prepared for all outcomes”.

Lars Lokke Rasmussen, the foreign minister of Denmark, which currently holds the presidency of the EU, reinforced the same message.

“The EU remains ready to react and that includes robust and proportionate countermeasures if required and there was a strong feeling in the room of unity,” he said.

As part of its preparations, Italy’s Foreign Minister Antonio Tajani confirmed that the EU had drawn up plans to target US goods worth $24.5bn.

Trump’s latest trade war escalation has alarmed European politicians and businesses operating in Europe.

German Chancellor Friedrich Merz has said such high US duties would “hit the German export industry to the core”.

Meanwhile, the American Chamber of Commerce to the European Union, a group that represents major US companies in the EU, said Trump’s plan could “generate damaging ripple effects across all sectors of the EU and US economies”.

Amid the uncertainty, European stocks fell on Monday, with car and alcohol stocks among those worst affected.

Speaking from the Oval Office of the White House on Monday, Trump said he was still willing to talk with trade partners, including the EU, as he looked to boost the US economy and revitalise domestic manufacturing.

After targeting dozens of countries with so-called “reciprocal tariffs” in April, the US president paused them for 90 days to negotiate individual agreements.

As well as targeting the EU last week, Trump also threatened to bring 25 percent tariffs against Japan and South Korea, 30 percent tariffs against Mexico, and 35 percent tariffs against Canada.

United States President Donald Trump has announced that he will raise import tariffs on most Canadian goods to 35 percent, even though Canada has agreed to rescind its planned digital services tax as the US demanded.

This comes as Trump sends “tariff letters” to a host of countries this week, notifying them of planned US trade levies to take effect on August 1 if trade deals are not struck before then.

What has Trump announced for Canada?

In late June, Trump threatened to end trade talks with Canada over its plans to push ahead with a new digital services tax, which would hit US technology companies financially. The US president said it was “a direct and blatant attack on our Country”. Canada quickly agreed to withdraw the tax.

But, in a letter released on his social media platform on Thursday this week, Trump nevertheless told Canadian Prime Minister Mark Carney that a new 35 percent tariff – an increase from the 25 percent rate originally imposed in March – would go into effect on August 1 and would rise if Canada retaliated with new tariffs of its own.

What do the US and Canada trade?

Canada is America’s second-largest trading partner, after Mexico. In 2024, Canada bought $349.4bn of US goods and exported $412.7bn, according to US Census Bureau data. The upshot is that Canada runs a $63.3bn trade surplus with the US.

Canada’s key exports to the US include oil and mineral fuels, cars and auto parts, as well as industrial machinery and nuclear reactors. On the other hand, it imports large amounts of transportation equipment, industrial chemicals and manufacturing technology from the US.

What US tariffs does Canada already face?

In his inaugural address after taking over the US presidency on January 20, Trump announced a 25 percent tariff on all Canadian goods and a 10 percent tariff on Canadian energy resources, claiming that Canada had a “growing footprint” in the production of fentanyl, a highly addictive and often deadly opioid drug.

He claimed Canada was not doing enough to prevent the flow of fentanyl into the US.

Those tariffs were paused for 30 days following assurances from Canada that appropriate action would be taken to curb the flow of fentanyl, but were then reimposed in early March after Trump declared that Canada had failed to do enough. They are now rising again, to 35 percent.

Canada, the biggest foreign supplier of steel and aluminium to the US, was also badly hit by Trump’s separate 25 percent tariffs on steel and aluminium, which he imposed globally in March. Trump doubled that for all countries to 50 percent in June, saying the measure would protect and bolster the US metals sector.

In March, Trump also announced a separate 25 percent tariff on imported cars and car parts. He said this would “take back” money from foreign countries that have been “taking our jobs” and “our wealth”.

Sectoral tariffs, on things like cars and industrial metals, are separate from country-wide levies.

For his part, Canadian Prime Minister Mark Carney described the auto tax move as a “direct attack” on Canadian workers.

Until the start of Trump’s second term as US president in January this year, Canada had enjoyed years of free trade relations with the US. It is understood that Mark Carney is still trying to find ways to satisfy Trump so that a 2018 free-trade deal between the US, Mexico and Canada (USMCA) – agreed during Trump’s first term in office – can be put back on track.

USMCA came into force on July 1, 2020, replacing the 1994 North American Free Trade Agreement (NAFTA). It is supposed to be reviewed every six years, and since Trump returned to office, it has been blighted by disputes and non-compliance issues. Some trade commentators have suggested the agreement won’t be extended next summer.

Trump’s Canada announcement this week also came after officials in Ottawa denounced yet another separate US plan to impose a 50 percent import tariff on copper earlier this week. Canada is one of the largest suppliers of the metal to the United States.

Why is Trump levying all these tariffs on Canada?

The Trump administration claims its tariffs on Canada are designed to force Ottawa to crack down on fentanyl smuggling into the US, despite only a modest flow of the drug over the border. Trump has also expressed frustration with his country’s trade deficit with Canada, which largely reflects oil purchases.

“I must mention that the flow of Fentanyl is hardly the only challenge we have with Canada, which has many Tariff, and Non-Tariff, Policies and Trade Barriers,” Trump wrote in the letter.

Besides more than 20 similar letters to other US trade partners so far this week, Trump says he will soon announce new tariffs for the European Union, too. As with Canada’s letter, Trump has promised to implement these new import levies from August 1.

Do Trump’s justifications for tariffs on Canada hold water?

Canadian government data shows that less than 0.1 percent of all seizures of fentanyl entering the US, from 2022-2024, were made at the Canadian border.

Almost all of rest was confiscated at the US border with Mexico. Carney has also publicly committed to “stop the scourge of fentanyl” in North America, and said his government wants to work alongside the US to protect communities in both countries.

Throughout the current trade negotiations with the United States, the Canadian government has steadfastly defended our workers and businesses. We will continue to do so as we work towards the revised deadline of August 1.

Canada has made vital progress to stop the scourge…

— Mark Carney (@MarkJCarney) July 11, 2025

Instead, in his first speech as prime minister, Carney said he believed that “the Americans want our resources, our water, our land, our country”.

He has had to push back on Trump’s taunts of making Canada the “51st state of America”. Indeed, Carney predicated his recent election win on the idea that Canada should keep its “elbows up”, as he put it.

During a meeting with Trump at the White House in Washington, DC, in May, Carney said: “Having met with the owners of Canada over the course of the campaign these last several months, it’s not for sale – won’t be for sale – ever.”

In recent months, Carney has also been strengthening ties with the United Kingdom and the EU in a bid to diversify its exports from the US.

Hours before Trump’s latest letter, Carney posted a picture of himself with British Prime Minister Keir Starmer on X, saying, “In the face of global trade challenges, the world is turning to reliable economic partners like Canada.”

In the face of global trade challenges, the world is turning to reliable economic partners like Canada. pic.twitter.com/KlsXJdhCSk

— Mark Carney (@MarkJCarney) July 10, 2025

What was the Canadian digital tax row about?

The US is home to some of the world’s biggest technology companies, including Apple, Alphabet/Google, Amazon and Meta. A new 3 percent digital services tax to be levied on tech companies deriving revenues from Canadian users, due to take effect in late June this year, could have cost those companies $2bn in additional taxes.

Trump called the new tax “a direct and blatant attack on our Country” in a Truth Social post in June. He added that the US would be “terminating ALL discussions on Trade with Canada, effective immediately”.

A few days after Trump suspended trade negotiations, Carney rescinded the tax in an effort to resume talks.

As such, Trump’s latest tariff letter to Carney has come in spite of what many had seen as a thawing of relations between the two leaders, who remain locked in trade negotiations.

How has Trump treated other countries?

So far this week, Trump has sent tariff letters to 23 heads of state, notifying them of new trade tariffs. On Wednesday, he told Brazil that he plans to impose a 50 percent tariff because of its “witch-hunt” against former President Jair Bolsonaro.

Bolsonaro, who is accused of plotting a coup, refused to publicly concede the 2022 presidential election, which he lost to current President Luiz Inacio “Lula” da Silva. Trump was similarly indicted in relation to efforts to overturn his own election loss in 2020.

Elsewhere, Trump’s tariff letters reflect his administration’s failure to finalise dozens of trade agreements that he claimed would be easy to negotiate. Shortly after unveiling his April 2 “Liberation Day” trade levies, Trump announced a 90-day pause to try and work out these agreements.

But on Monday, the president was forced to extend this pause again until August 1. For the most part, Trump says he is trying to rebalance large trading deficits, whereby the US imports more than it exports. However, some targeted countries – including Brazil – have trade imbalances in the US’s favour rather than their own.

Other than Brazil, recipients of tariff letters on Wednesday included the Philippines, Moldova, Sri Lanka, Brunei, Libya, Algeria and Iraq. They were notified of tariffs as high as 30 percent.

The rates Trump said would be imposed on Sri Lanka, Moldova, Iraq and Libya were lower than those he initially announced in early April. Tariffs on goods from the Philippines and Brunei were higher. The rate for goods from Algeria remained the same.

On Monday, he notified Japan, South Korea and a dozen other economies of tariffs ranging from 25 percent to 40 percent.

In an interview with NBC News on Thursday, Trump said: “We’re just going to say all of the remaining countries are going to pay, whether it’s 20 percent or 15 percent. We’ll work that out now.”

Currently, the global baseline minimum tariff rate for nearly all US trading partners is 10 percent.

How have markets reacted to the tariff letters?

While the White House unfurled a stream of tariff announcements this week, financial markets have generally shrugged off Trump’s threats. The S&P 500 – the stock market index tracking the performance of the 500 largest companies in the US – and the tech-heavy Nasdaq Composite both closed at record highs on Thursday.

Experts say that recent gains in the S&P 500 suggest many investors think that Trump will ultimately back down on his tariff increases.

Financiers have established a name for the president’s policy flip-flopping – it’s called TACO: “Trump Always Chickens Out”. Washington, so the theory goes, does not have a high tolerance for economic pressure and will back off when tariffs cause pain.

US president also eyes blanket tariffs of 15 to 20 percent on other trading partners as his trade war widens.

President Donald Trump has announced that the United States would impose a 35 percent tariff on imports from Canada next month, while eyeing blanket tariffs of 15 or 20 percent on most other trading partners as he broadens his trade war.

In a letter released on his social media platform on Thursday, Trump told Canadian Prime Minister Mark Carney the new rate would go into effect on August 1 and would go up if Canada retaliated.

It was the latest of more than 20 such letters issued by Trump since Monday, as he continues to pursue his trade war threats against dozens of economies.

The letter on Thursday came despite what had been warming relations between Trump and Carney.

The Canadian leader visited the White House on May 6 and held a cordial meeting with Trump in the Oval Office.

They met again at the G7 summit last month in Canada, where leaders pushed Trump to back away from his punishing trade war.

In an interview with NBC News published on Thursday, Trump also said that other trading partners that had not yet received such letters would likely face blanket tariffs.

“Not everybody has to get a letter. You know that. We’re just setting our tariffs,” Trump said in the interview.

“We’re just going to say all of the remaining countries are going to pay, whether it’s 20 percent or 15 percent. We’ll work that out now,” Trump was quoted as saying by the network.

In recent days, he also set new tariffs on a number of countries, including allies Japan and South Korea, along with a 50 percent tariff on copper.

On Friday, Myanmar, which was also hit by stiff Trump tariffs, pleaded with Trump for a reduction in the 40 percent tariff rate, with ruling Senior General Min Aung Hlaing saying he is ready to send a negotiation team to Washington if needed, according to state media.

Locked in talks

Canada and the US are locked in trade negotiations, hoping to reach a deal by July 21, and the latest threat seems to put that deadline in jeopardy.

Canada, as well as Mexico, are trying to find ways to satisfy Trump so that the free trade deal uniting the three countries, known as the USMCA, can be put back on track.

The United States-Mexico-Canada Agreement replaced the previous NAFTA accord in July 2020, after Trump successfully pushed for a renegotiation during his first term in office.

It was due to be reviewed by July of next year, but Trump accelerated the process by launching his trade wars after taking office in January.

Canadian and Mexican products were initially hard hit by 25 percent US tariffs, with a lower rate for Canadian energy.

Trump targeted both neighbours, saying they did not do enough on undocumented immigration and the flow of illicit drugs across borders.

But he eventually announced exemptions for goods entering his country under the USMCA, covering large swaths of products. Potash, used as fertiliser, got a lower rate as well.

United States President Donald Trump has threatened Brazil with a 50 percent tariff, citing the criminal charges against its former president and his political ally Jair Bolsonaro, who is accused of plotting a coup.

In a letter to Luiz Inacio Lula da Silva, Brazil’s current president, Trump said on Wednesday that the treatment of Bolsonaro, who refused to publicly concede the presidential election that he lost to Lula in 2022, “is an international disgrace”.

The letter was one of 22 tariff notices Trump sent this week to various countries. On Monday, the president extended a pause on his sweeping global tariffs from Wednesday to August 1.

For the most part, Trump says he is trying to rebalance large trading deficits, whereby the US imports more from a country than it exports there.

But the US has a trade surplus with Brazil, and the tariff threatened against South America’s largest economy was higher than those received by other countries, which have mostly fallen in the range of 25 to 40 percent.

The escalation in tensions between the US and Brazil came as Lula hosted representatives from China, Russia, Iran and other nations for a BRICS summit of emerging economies in Rio de Janeiro this week.

Leaders attending the summit criticised Trump’s tariffs and the recent US and Israeli bombing of Iran, drawing threats from Trump of a 10 percent additional tariff for “anti-American” BRICS-aligned countries.

What has Trump announced in relation to Brazil?

Trump has continued to publish letters informing US trading partners of tariffs planned to begin on August 1 if they can’t reach trade deals with his government before that. So far, he has sent 22 letters to heads of state. More could still come.

While the letters have mostly denounced trade between those countries and the US as “far from reciprocal”, Trump’s letter to Lula was stronger.

He wrote that “due in part to Brazil’s insidious attacks on Free Elections, and the fundamental Free Speech Rights of Americans”, he planned to levy a 50 percent tax on Brazilian goods exported to the US.

“Please understand that the 50 percent number is far less than what is needed to have the Level Playing Field we must have with your Country,” Trump added. “And it is necessary to have this to rectify the grave injustices of the current regime.”

He said: “The way that Brazil has treated former President Bolsonaro, a Highly Respected Leader throughout the World during his term, including by the United States, is an international disgrace.”

How has Brazil responded?

Lula promised to hit back with tariffs of his own if Trump follows through with his threat.

“Brazil is a sovereign nation with independent institutions and will not accept any form of tutelage,” Lula said in a post on X.

He added that the criminal case against Bolsonaro, who challenged the outcome of Brazil’s 2022 election, is a matter solely for the justice system and “not subject to interference or threat”.

Why is Trump targeting Brazil when the US has a trade surplus?

According to the Office of the US Trade Representative, the US imported $42.3bn of goods from Brazil in 2024 and exported $49.7bn.

In short, Brazil’s purchases from the US amounted to roughly $7.4bn more than US purchases from Brazil.

Ever since the announcement of his “Liberation Day” tariffs, on April 2, Trump has consistently stated his desire to reduce America’s trade deficits with its trading partners.

In Trump’s view, deficit countries, such as the US, import goods that could have been produced at home, harming domestic employment and economic growth in the process.

However, “Brazil has historically run a small trade deficit with the US”, said Elizabeth Johnson, an economic analyst at TS Lombard, a strategy and political research firm. “It is very much political. … It is part of the Bolsonaro family’s effort to get Trump to weigh in on the ongoing trial of Jair Bolsonaro.”

Indeed, this is not the first time Trump has used the threat of tariffs to try to alter other countries’ domestic policy decisions.

Since returning to office in January, he has threatened a 25 percent tariff on Colombian goods and said he would double that if the country refused to accept deportees from the US. Colombia ultimately accepted his terms.

What trade does the US do with Brazil?

In 2023, the balance of trade (imports plus exports) between the US and Brazil amounted to $104bn, making Brazil the US’s 15th largest trading partner.

Top US exports to Brazil last year included aircraft and spacecraft (amounting to about $7bn), fossil fuels ($9bn) and industrial machinery such as nuclear reactors and electrical equipment (roughly $10bn), according to US Census Bureau data.

Brazil’s exports to the US in 2023 were led by crude oil and fossil fuels (about $8.8bn), iron and steel products ($5bn) and soya beans ($3.3bn).

What impact could a 50 percent tariff have on Brazil’s economy?

It could severely hurt companies highly exposed to the US market. In particular, firms in the base metals and agricultural sectors could be badly hit.

According to Johnson, Trump’s tariff threat could be a drag on economic growth because the US is Brazil’s second largest export market after China.

Indeed, Goldman Sachs has calculated that Brazil’s exports to the US represent 2 percent of its gross domestic product and Trump’s tariffs could cut its economic growth by 0.3 to 0.4 percentage points.

What impact could this have on the US economy?

If the tariffs are implemented, US firms that buy Brazilian goods would most likely have to find alternative sources for those products, and this could take time.

In the meantime, “the semifinished steel products from Brazil used in American manufacturing mean [that higher tariffs would be] a negative,” Johnson told Al Jazeera.

In addition, “beef, orange juice, coffee” and other farm products travelling from Brazil into the US would become much more expensive, she said.

On the other hand, Johnson suggested, “There’s room for Trump to score a win with Brazil by allowing more ethanol exports into the US, which would help [American] farmers.”

What charges is Bolsonaro facing in Brazil?

Bolsonaro, who was president of Brazil from 2019 to 2023, refused to concede his presidential election loss to his left-wing rival in 2022.

Bolsonaro raised questions about the accuracy of the election result, claiming that some electronic voting machines had been faulty.

Shortly after Lula took office in January 2023, thousands of Bolsonaro’s supporters angered over the election result stormed the presidential palace, Congress and the Supreme Court in the capital, Brasilia.

Now, Bolsonaro is facing criminal charges for allegedly plotting a coup and for alleged actions he took to overturn the 2022 election result.

Bolsonaro and 33 other people were charged this year, and the ex-president’s case is being heard by the Supreme Court. He could face 40 years in prison if found guilty.

Bolsonaro has denied any wrongdoing and has framed the trial as a politically motivated attack.

Trump, who also falsely claimed he had beaten Joe Biden in the 2020 presidential election, had faced criminal charges related to seeking to overturn that election. His supporters also stormed the US Capitol before Biden took office, seeking to stop the certification of the election results.

Trump has highlighted what he regards as parallels between himself and Bolsonaro. On Monday, he wrote on social media that he empathised with what was happening to Bolsonaro: “It happened to me, times 10.”

Which other countries were notified of new tariffs?

Other than Brazil, recipients of tariff letters on Wednesday included the Philippines, Moldova, Sri Lanka, Brunei, Libya, Algeria and Iraq. They were notified of tariffs as high as 30 percent.

The rates Trump said would be imposed on Sri Lanka, Moldova, Iraq and Libya were lower than those he initially announced in early April.

Tariffs on goods from the Philippines and Brunei were higher. The rate for goods from Algeria remained the same.

Trump has said companies that move production to the US will be exempt from tariffs. But he also warned that if countries retaliate, they could face even higher US duties.

The US and its largest trading partners have been negotiating trade deals since Trump announced the tariffs. But so far, only Vietnam and the United Kingdom have reached new deals while a partial agreement has been reached with China.

More recently, Trump administration officials have indicated that deals with India and the European Union may be imminent.

United States President Donald Trump has continued to publish letters announcing individualised tariff hikes for foreign trading partners.

But on Wednesday, one of those letters was different from the rest.

While most of the letters are virtually identical, denouncing trade relationships that are “far from reciprocal”, Trump’s letter to Brazilian President Luiz Inacio Lula da Silva took a decidedly more personal — and more confrontational — approach.

“Due in part to Brazil’s insidious attacks on Free Elections, and the fundamental Free Speech Rights of Americans”, Trump wrote that he would be charging Brazil an extra 50-percent tax on any goods it exports to the US, separate from existing “sectoral tariffs”.

“Please understand that the 50% number is far less than what is needed to have the Level Playing Field we must have with your Country,” Trump added. “And it is necessary to have this to rectify the grave injustices of the current regime.”

The letter marked the biggest attack yet in Trump’s escalating feud with Lula, as he seeks to pressure Brazil to drop criminal charges against a fellow far-right leader, Jair Bolsonaro.

Known as the “Trump of the Tropics”, Bolsonaro, a former army captain, led Brazil for a single term, from 2019 to 2023.

Like Trump, Bolsonaro refused to concede his election loss to a left-wing rival. Like Trump, Bolsonaro also raised questions about the accuracy of the results, including by voicing doubts about electronic voting machines.

And like Trump, Bolsonaro has faced legal repercussions, with court cases weighing whether he could be criminally liable for alleged actions he took to overturn his defeat.

In Bolsonaro’s case, the election in question took place in October 2022, against the current president, Lula. The results were narrow, but Lula edged Bolsonaro out in a run-off race, earning 50.9 percent of the vote.

Still, Bolsonaro did not acknowledge his defeat and instead filed a legal complaint to contest the election results.

Meanwhile, his followers attacked police headquarters, blocked highways, and even stormed government buildings in the capital, Brasilia, in an apparent attempt to spark a military backlash against Lula.

Prosecutors, meanwhile, have accused Bolsonaro of conspiring with allies behind the scenes to stage a coup d’etat, one that might have seen Supreme Court justices arrested and a new election called.

According to the indictment, Bolsonaro, as the outgoing president, considered provoking these changes by calling a “state of siege”, which would have empowered the military to take action.

One of the other possibilities reportedly discussed was poisoning Lula.

Bolsonaro and 33 others were charged in February, and the ex-president’s case is ongoing before the Brazilian Supreme Court.

The charges came as the result of a federal police investigation published in November 2024, which recommended a criminal trial. Bolsonaro, however, has denied any wrongdoing and has framed the trial as a politically motivated attack.

Trump himself has faced two criminal indictments – one on the state level, the other federal – for allegedly seeking to overturn his loss in the 2020 election. He, too, called those cases attempts to derail his political career.

In recent days, Trump has highlighted what he sees as parallels between their cases. On July 7, he wrote on social media that he empathised with what was happening to Bolsonaro: “It happened to me, times 10.”

He reprised that theme in Wednesday’s letter, announcing the dramatic increase in tariffs against Brazil.

“The way that Brazil has treated former President Bolsonaro, a Highly Respected Leader throughout the World during his term, including by the United states, is an international disgrace,” Trump said.

“This trial should not be taking place,” he added. “It is a Witch Hunt that should end IMMEDIATELY!”

In addition to ramping up tariffs against Brazil, Trump revealed in his letter that he had directed US Trade Representative Jamieson Greer to investigate Brazil for unfair practices under the Trade Act of 1974.

This is not the first time that Trump has lashed out at Brazil, though. In February, the Trump Media and Technology Group filed a Florida lawsuit against Brazilian Supreme Court Justice Alexandre de Moraes, arguing that his decisions curtailed online freedom of speech in the US.

De Moraes had also overseen the investigation into Bolsonaro’s alleged coup attempt, and he is a target of criticism among many on the far right.

While Trump’s tariff letter contained the standard language alleging that the US’s trading relationship with Brazil was “very unfair”, the US actually enjoys a trade surplus with the South American country.

According to the Office of the US Trade Representative, in 2024, the US imported a total of $42.3bn from Brazil. But that was dwarfed by the amount it exported to the country: $49.7bn.

In short, Brazil’s purchases from the US amounted to about $7.4bn more than US purchases from Brazil.

Still, Trump has cited uneven trade relationships as the motivation for his tariffs, though he has also used them to influence other countries’ policies, particularly with regards to immigration, digital services and transnational drug smuggling.

On Wednesday, Bolsonaro took to social media to once again proclaim his innocence. In a separate case, he was barred from holding public office in Brazil for a period of eight years.

“Jair Bolsonaro is persecuted because he remains alive in the popular consciousness,” the ex-president wrote in the third person. “Even out of power, he remains the most remembered name – and the most feared. That’s why they try to annihilate him politically, morally, and judicially.”

He also reposted a message from Trump himself: “Leave the Great Former President of Brazil alone. WITCH HUNT!!!”

Lula, meanwhile, responded to Trump’s previous tariff threats on Monday by saying, “The world has changed. We don’t want an emperor.”

The US imports roughly half of its copper needs each year, which is used in construction, transportation and electronics.

United States President Donald Trump has said he will announce a 50 percent tariff on copper, hoping to boost domestic production of a metal critical to electric vehicles, military hardware, the power grid and many consumer goods.

Trump told reporters at a White House cabinet meeting that he planned to make the copper tariff announcement later in the day, but did not say when the tariff would take effect.

“I believe the tariff on copper, we’re going to make 50 percent,” Trump said.

US Comex copper futures jumped more than 12 percent to a record high after Trump announced the planned tariff, which came earlier than the industry had expected, with the rate steeper.

After Trump spoke, Secretary of Commerce Howard Lutnick said in an interview on CNBC that the tariff would likely be put in place by the end of July or August 1. He said Trump would post details on his Truth Social media account sometime on Tuesday.

In February, the administration announced a so-called Section 232 investigation into US imports of the red metal. Such an investigation allows the US Department of Commerce to analyse the impact of an import on national security. The deadline for the investigation to conclude was November, but Lutnick said the review was already complete.

“The idea is to bring copper home, bring copper production home, bring the ability to make copper, which is key to the industrial sector, back home to America,” Lutnick said.

The National Mining Association declined to comment, saying it preferred to wait until details were released. The American Critical Minerals Association did not immediately respond to requests for comment.

Copper is used in construction, transportation, electronics and many other industries. The US imports roughly half of its copper needs each year.

Copper supplies

Major copper mining projects across the US have faced strong opposition in recent years due to a variety of reasons, including Rio Tinto and BHP’s Resolution Copper project in Arizona and Northern Dynasty Minerals’s Pebble Mine project in Alaska.

Shares of the world’s largest copper producer, Phoenix-based Freeport-McMoRan, shot up nearly 5 percent in Tuesday afternoon trading. The company, which produced 1.26 billion pounds of copper in the US last year, did not immediately respond to a request for comment.

Freeport, which would benefit from US copper tariffs but worries that the duties would hurt the global economy, has advised Trump to focus on boosting US copper production.

Countries set to be most affected by any new US copper tariff would be Chile, Canada and Mexico, which were the top suppliers to the US of refined copper, copper alloys and copper products in 2024, according to US Census Bureau data.

Chile, Canada and Peru, three of the largest copper suppliers to the US, have told the Trump administration that imports from their countries do not threaten US interests and should not face tariffs. All three have free trade deals with the US.

Mexico’s Secretariat of Economy, Chile’s Ministry of Foreign Affairs and Canada’s Department of Finance did not immediately respond to requests for comment. Chile’s Mining Ministry and Codelco, the country’s leading copper miner, declined to comment.

A 50 percent tariff on copper imports would affect US companies that use the metal because the country is years away from meeting its needs, said Ole Hansen, the head of commodity strategy at Saxo Bank.

“The US has imported a whole year of demand over the past six months, so the local storage levels are ample,” Hansen said. “I see a correction in copper prices following the initial jump.”