reacting

President Donald Trump’s administration has unveiled a range of new tariffs to take effect in one week on most US trading partners.

Nearly 70 countries face Trump’s import duties that were due to come into force on August 1; most were delayed at the last minute and will begin on August 7.

Trump sees the tariffs as an economic tool of power that will put US exporters in a stronger position, by keeping out imports and encouraging domestic manufacturing.

While the situation remains dynamic, different levies will be imposed on countries, ranging from 15 percent on Japan and the European Union to 39 percent on Switzerland.

Here’s how countries and markets have reacted to the news:

China

China has warned that US protectionism “harms the interests of all parties”.

“The Chinese side’s opposition to tariffs has been consistent and clear,” Foreign Ministry spokesman Guo Jiakun said.

“There is no winner in a tariff war or trade war,” he added.

With no permanent deal in place, Beijing and Washington are negotiating a deal over tariffs. A 30 percent combined tariff will, however, be applied, following an agreed pause until August 12. That followed an earlier escalation to a 145 percent tariff on imports.

Taiwan

Taiwanese President William Lai Ching-te has called its 20 percent tariff announced by Trump “temporary … with the possibility of further reductions should an agreement be reached”.

The US president had threatened to hit the island with a 32 percent tax and possible duties on its huge semiconductor shipments.

Japan

A tariff of 15 percent agreed last week between Japan and Washington – down from a threatened 25 percent – is due to be applied from August 7.

“We continue to urge the US to take prompt measures to implement the agreement, including lowering tariffs on automobile and auto parts,” Prime Minister Shigeru Ishiba said on Friday.

The Bank of Japan (BOJ), however, warned that profits of Japanese firms are likely to fall this year because of US tariffs, leading them to downgrade capital expenditure plans.

Automakers have swallowed the rising costs from the tariffs instead of passing them on to US consumers, as seen in a fall of roughly 20 percent in export prices since April, the BOJ said in a full version of its quarterly outlook report.

“This suggests Japanese automakers are averting price hikes that may lead to falling sales volume, at the cost of seeing profitability worsen,” the BOJ added.

Malaysia

Malaysia’s Trade Ministry has said its rate, down from a threatened 25 percent, was a positive outcome without compromising on what it called “red line” items.

Thailand

Thailand’s finance minister said the reduction from 36 to 19 percent in tariffs, would help his country’s struggling economy face global challenges ahead.

“It helps maintain Thailand’s competitiveness on the global stage, boosts investor confidence and opens the door to economic growth, increased income and new opportunities,” Pichai Chunhavajira said.

Cambodia

The US on Friday slashed the tariff rate for Cambodia to 19 percent from earlier levies of 36 percent and 49 percent, a major boost for its crucial garments sector, its biggest economic driver and source of about a million manufacturing jobs.

“If the US maintained 49 percent or 36 percent, that industry would collapse, in my opinion,” Cambodia’s Deputy Prime Minister and top trade negotiator Sun Chanthol told the Reuters news agency in an interview.

European Union

The EU’s trade chief, Maros Sefcovic, said the bloc’s exporters now benefit from a “more competitive position” following a framework agreement between the EU and the US, although he added that “the work continues.

“The new US tariffs reflect the first results of the EU-US deal, especially the 15 percent all-inclusive tariff cap,” Sefcovic wrote in a post on social media platform X.

“This reinforces stability for businesses as well as trust in the transatlantic economy,” he added.

Switzerland

Switzerland expressed “great regret” that it was hit with 39 percent – up from the threatened 31 percent – despite its “very constructive position”.

The levy – more than double the EU’s 15 percent – appeared to catch the rich Alpine nation off guard.

Switzerland ranks sixth in terms of direct investment in the US, with pharma giants Roche and Novartis announcing major spending plans in recent months.

Sri Lanka

Sri Lanka expressed relief that it will face a 20 percent hit – a sharp reduction from the 44 percent originally floated – and expressed hope of a further cut.

“We are happy that our competitiveness in exports to the US has been retained,” Finance Ministry official Harshana Suriyapperuma told reporters.

Bangladesh

Bangladesh negotiated a 20 percent tariff on exports to the US, down from the 37 percent initially proposed by Trump.

Muhammad Yunus, the head of the country’s interim government, called it a “decisive diplomatic victory”.

Pakistan

Pakistan secured a tariff rate of 19 percent with the US on Thursday.

“This deal marks the beginning of a new era of economic collaboration, especially in energy, mines and minerals, IT, cryptocurrency and other sectors,” the Pakistani Finance Ministry said in a statement.

India

Trump on Wednesday said Indian goods would face a 25 percent US tariff starting August 1, slightly below an earlier threatened level.

The country would also face an unspecified “penalty” over New Delhi’s purchases of Russian weapons and energy, Trump said on social media.

In a statement, the Indian government said on Wednesday it was studying the implications of these new tariffs and added New Delhi “attaches the utmost importance to protecting and promoting the welfare of our farmers, entrepreneurs, and MSMEs”.

South Africa

South Africa will use the weeklong delay in the US’s imposition of 30 percent tariffs to negotiate, to avoid the penalty and save jobs, President Cyril Ramaphosa said on Friday.

“Intensive negotiations are now under way,” Ramaphosa told journalists.

“Our task is to negotiate as strongly and as hard as we can with the United States,” he said. “Our objective, really, is to save jobs.”

Canada

Trump said on Thursday that the US would raise tariffs on certain Canadian goods from 25 percent to 35 percent.

He had warned of trade consequences for Canada after Prime Minister Mark Carney announced plans to recognise a Palestinian state at the United Nations General Assembly in September.

Unlike the new levies hitting dozens of other economies, there is no delay, and these begin on Friday, according to a White House fact sheet.

Carney said his government is “disappointed” by Trump’s decision.

Trump’s order also cited Canada’s failure to “cooperate in curbing the ongoing flood of fentanyl and other illicit drugs” as well as its “retaliation” against his measures.

Carney outlined Ottawa’s efforts to crack down on fentanyl and to increase border security. “Canada accounts for only 1 percent of US fentanyl imports and has been working intensively to further reduce these volumes,” he said.

Products covered by the 2020 United States-Mexico-Canada Agreement – which covers a wide swath of items – will, however, be exempt from the tariff rate.

Markets

European stocks hit a three-week low as investors worried about the effect of the new US levies on dozens of countries.

Asian shares were also headed for the worst week since April after the tariffs were announced.

Oil prices have, however, changed very little, heading for a weekly gain.

Most European nations welcome the deal, but some slam it as a capitulation before the EU’s largest trading partner.

The United States and the European Union have struck a wide-ranging trade deal, imposing a 15 percent import tariff on most EU goods, evading an all-out transatlantic trade war.

The deal was hashed out on Sunday between US President Donald Trump and European Commission President Ursula von der Leyen in Scotland, before an August 1 deadline for the introduction of steep tariffs.

Both Trump and von der Leyen lauded the deal as an important step, with the US leader hailing it as the “biggest deal” ever made, and the EU chief stating it will bring much-needed “stability” and “predictability”.

But what are European leaders saying about the deal with the EU’s largest trading partner? Here are some reactions:

Denmark

“The trade conditions will not be as good as before, and it is not our choice, but a balance must be found that stabilises the situation and that both sides can live with,” said Danish Foreign Minister Lars Lokke Rasmussen.

Finland

Finnish Prime Minister Petteri Orpo said the agreement brings “much-needed predictability to the global economy and Finnish companies”. “Work must continue to dismantle trade barriers. Only free transatlantic trade benefits both sides the most,” he said.

France

“It is a sombre day when an alliance of free peoples, brought together to affirm their common values and to defend their common interests, resigns itself to submission,” said French Prime Minister Francois Bayrou.

Germany

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

A government spokesperson told the Reuters news agency that Berlin sees the need for further negotiations. “It is certainly no secret that in the steel and aluminium sector … We see a need for further negotiations,” the spokesperson said during a news conference in Berlin. He added that details of the deal remained to be worked out, and that “the EU Commission and the German government are now fully committed to this.”

Hungary

Hungarian Prime Minister Viktor Orban slammed the deal. “This is not an agreement … Donald Trump ate von der Leyen for breakfast, this is what happened, and we suspected this would happen as the US president is a heavyweight when it comes to negotiations, while Madame President is featherweight,” he said.

Ireland

Irish Trade Minister Simon Harris said the deal provides a “measure of much-needed certainty for Irish, European and American businesses who together represent the most integrated trading relationship in the world”.

“While Ireland regrets that the baseline tariff of 15 percent is included in the agreement, it is important that we now have more certainty on the foundations for the EU-US trade relationship, which is essential for jobs, growth and investment,” he said.

Italy

“I consider it positive that there is an agreement, but if I don’t see the details, I am not able to judge it in the best way,” said Italian Prime Minister Giorgia Meloni. Speaking at a summit in Ethiopia, she said a “trade escalation between Europe and the United States would have had unpredictable and potentially devastating consequences”.

Meloni – a Trump ally on many issues – had warned earlier this month against a “trade war within the West”.

Romania

In a statement, the Romanian government’s press office said Prime Minister Ilie Bolojan “salutes that a trade agreement was reached and … feels it is a good omen”. “It eliminates present unclearness which caused disruptions and uncertainties in transatlantic trade relations,” it said.

Spain

Spanish Prime Minister Pedro Sanchez said he backed the deal but “without any enthusiasm”.

“I value the constructive and negotiating attitude of the president of the European Commission. In any case, I support this trade agreement, but I do so without any enthusiasm,” he told a news conference.

Sweden

“This agreement does not make anyone richer, but it may be the least bad alternative. What appears to be positive for Sweden, based on an initial assessment, is that the agreement creates some predictability,” said Swedish Trade Minister Benjamin Dousa.