Trump’s new tariffs take effect in trade war escalation

US President Donald Trump’s sweeping new tariffs on nations world wide have come into impact in an escalation of his commerce conflict.”IT’S MIDNIGHT!!! BILLIONS OF DOLLARS IN TARIFFS ARE NOW FLOWING INTO THE UNITED STATES OF AMERICA!” Trump mentioned on social media minutes earlier than the midnight deadline in Washington, DC.Earlier, the president hit India with a 50% tariff, which can take impact on 27 August until it stops shopping for Russian oil.Trump additionally threatened a 100% tariff on foreign-made laptop chips as he pushes tech companies to spend money on the US. It got here as Apple introduced a brand new $100bn US funding (£75bn) after coming underneath strain from the White Home to maneuver extra manufacturing to America.Final week, the Trump administration introduced a revised record of import taxes on dozens of buying and selling companions and prolonged a deadline for nations to succeed in agreements with the US to 7 August.International locations have been racing to strike offers with Washington to decrease – or scrap – what Trump calls “reciprocal tariffs”.His commerce insurance policies are geared toward reshaping the worldwide buying and selling system, which he sees as treating the US unfairly.Export-dependent economies in South East Asia had been among the many hardest-hit by the brand new tariffs.Manufacturing-focused Laos and Myanmar confronted a number of the highest levies at 40%. Some consultants mentioned Trump seems to have focused nations with shut commerce ties with China.Some main economies – together with the UK, Japan and South Korea – have already reached agreements to get decrease tariffs than Trump threatened in April.The European Union has additionally struck a framework take care of Washington, during which Brussels has accepted a 15% tariff on items from the buying and selling bloc.Taiwan, a key Washington ally in Asia, was handed a 20% tariff. Its president Lai Ching-te mentioned the speed is “short-term” and that talks with the US are nonetheless underway.Final week, Trump boosted the tariff charge on Canada from 25% to 35%, saying the nation had “did not cooperate” in curbing the stream of fentanyl and different medication throughout the US border. The Canadian authorities says it’s cracking down on drug gangs.However most Canadian exports to the US will dodge the import tax as a result of an current commerce treaty, the United States-Mexico-Canada Settlement (USMCA).Increased tariffs on Mexico had been paused for an additional 90 days as negotiations proceed to strike a commerce deal.On Wednesday, Trump’s mentioned he would impose a 100% tariff on foreign-made semiconductors.Main chipmakers which have made vital investments within the US seem to have dodged the brand new tariff. Authorities officers in Taiwan and South Korea have mentioned in separate statements that TSMC, SK Hynix, and Samsung can be exempt from the brand new levy.The White Home didn’t instantly reply to a BBC request for clarification.The BBC has additionally contacted SK Hynix and Samsung. TSMC declined to remark.Additionally on Wednesday, Trump raised the full tariff on India to 50% as he pushes the world’s third largest importer of vitality to cease shopping for oil from Russia.New Delhi has referred to as the transfer “unfair, unjustified and unreasonable” and vowed to guard its nationwide pursuits.Brazil’s exports to the US additionally face a 50% tariff. Trump imposed the levy after accusing President Luiz Inacio Lula da Silva of unfairly attacking US expertise companies and calling the prosecution of former President Jair Bolsonaro for allegedly trying a coup a “witch hunt”.The US and China have held a sequence of talks as they tried to agree an extension to a 90-day tariffs pause that is because of expire on 12 August.