Trump's new tariffs take effect as trade war escalates
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President Trump at the White House on Wednesday. Photo: Win McNamee/Getty Images
President Trump celebrated his sweeping new tariffs finally taking effect on dozens of trading partners early Thursday.
Why it matters: Trump's tariff policy has begun to impact some businesses, which warn they'll have to pass costs onto consumers. But the president wrote on Truth Social as the levies took effect that "BILLIONS OF DOLLARS" were now "FLOWING" into the U.S.
- Certain industries in the U.S. have benefited from tariffs that the Trump administration has imposed since the president announced the policy in April.
- But some businesses have been waiting for more clarity to adapt their supply chains and pricing after the Trump administration set and then revised several deadlines for trade deals.
The big picture: The Trump administration has reached trade agreements with key partners including the European Union, Japan, South Korea and the United Kingdom.
- The White House announced last week modifications to the "reciprocal" tariffs after Trump signed an order for countries yet to strike a trade deal.
- So while the U.K. faces a 10% tariff, Syria has been hit with a 41% levy on goods exported to the U.S. as the country still reels from a civil war that ended with the toppling of the Assad regime last December.
- Some Canadian goods have faced rates of 35% since last Thursday, but the U.S.-Mexico-Canada Agreement (USMCA) on trade is exempt from the tariffs hike so most products from the North American ally are not affected.
What he's saying: "The only thing that can stop America's greatness would be a radical left court that wants to see our country fail," Trump wrote on Truth Social in all capital letters, in an apparent reference to an appeals court that's weighing the legality of his administration's argument that global trade imbalances amounted to a national emergency.
What we're watching: Trump on July 31 paused for 90 days Mexico's previously announced 35% tariffs that were due to take effect this month.
- China's 90-day trade truce is due to expire on Aug. 12.
Meanwhile, Brazil's President Luiz Inácio Lula da Silva told Reuters he won't "humiliate" himself by rushing for trade talks with Trump despite the country facing a 50% levy — which retailers warn will increase the price of Americans' coffee.
Go deeper: Trump plans 100% tariff on semiconductors, with big exemption
