Global Trade Partners React to New US Tariffs

Global trading partners responded on Friday to President Donald Trump’s new wave of tariffs on dozens of countries, with some welcoming the move after securing favorable terms, while others expressed disappointment as their rates increased.

Trump signed the executive order on Thursday, the eve of the Aug. 1 deadline for trading partners to reach trade agreements with the United States. Levies range from 10 percent to as high as 41 percent, depending on whether a nation has reached an agreement with the United States and the nature of the agreement. These reciprocal tariffs will come into effect on Aug. 7.

Minimizing the trade deficit between the United States and its global partners has been a key pillar of Trump’s trade policy. His administration initially announced tariffs would come into effect on April 9, but that was later extended to Aug. 1, to allow more time for negotiations. In that time, the Trump administration has struck tentative trade agreements with several partners, including the EU, Japan, and the UK.

Malaysia Hails ‘Significant Achievement’

Malaysia’s Ministry of Investment, Trade and Industry said that the tariff reduction from 25 percent to 19 percent was a “significant achievement” as the deal was struck without compromising key national interests.

The ministry said that the rate roughly tracks with levies in other countries in Southeast Asia. The statement added that this tariff was achieved without Malaysia compromising on its “red line” items or the nation’s “sovereign right to implement key policies to support the nation’s socio-economic stability and growth.”

Taiwan was notified on Thursday by the Trump administration that the initial 32 percent tariff rate had been lowered to 20 percent.

Taipei is yet to engage in final negotiations for a trade deal with Washington, but Taiwanese President Lai Ching-te said he was hopeful the final rate would be reduced even further.

“Twenty percent from the beginning has not been our goal. We hope that in further negotiations we will get a more beneficial and more reasonable tax rate,” Lai told reporters on Friday.

Cambodia’s Deputy Prime Minister Sun Chanthol thanked Trump for setting the tariff rate on Cambodian goods at 19 percent, down from 49 percent—one of the highest rates in the world—and said he will impose zero tariffs on all U.S. goods.

Thailand also saw its tariffs reduced from 36 percent to 19 percent. The country’s government spokesperson Jirayu Houngsub said, “It’s one of the major successes of Team Thailand in a win-win approach, to secure the country’s export base and economic security in a long run.”

Switzerland’s Tariff Increases

Switzerland, renowned for its banking, pharmaceutical, and luxury watch sectors, faced a different kind of development on Thursday as it was hit with a 39 percent tariff, an increase from the originally proposed rate of 31 percent.

In a post on X on Friday, the Swiss government said, “The Federal Council notes with great regret that, despite the progress made in bilateral talks and Switzerland’s very constructive stance from the outset, the US intends to impose unilateral additional tariffs on imports from Switzerland.”

The Swiss said it will continue to negotiate with representatives of the United States.

Norway will face its expected 15 percent tariff from Aug. 7, unchanged from the April announcement.

Norwegian Prime Minister Jonas Gahr Store told newspaper VG on Friday that the Scandinavian country should have “zero tariffs.”

He said that Norway was still in talks with the United States, adding, “The U.S. is an important trading partner for us. The talks are not concluded, but they have come a long way and are constructive.”

Canada ‘Disappointed’

Canada was not included in Trump’s updated list of tariff rates. Trump signed an executive order raising tariffs on its goods from 25 percent to 35 percent.

The White House said in a July 31 fact sheet that Canada had “failed to cooperate in curbing the ongoing flood of fentanyl and other illicit drugs, and it has retaliated against the United States for the President’s actions to address this unusual and extraordinary threat to the United States.”

Unlike the tariffs on other nations, Canada’s will take effect immediately on Friday.

Canada’s Prime Minister Mark Carney said in a statement posted to X on Friday that his government was “disappointed by this action,” but remains committed to the USMCA.

He said that Canada will “continue working with the United States to stop the scourge of fentanyl and save lives in both our countries” and will continue to negotiate on its trading relationship.