Higher US tariffs take effect on dozens of economies

The Guardian :

Dozens of countries face higher levies on their exports to the US now that Donald Trump’s latest wave of country-specific tariffs has come into force.

The sweeping “reciprocal” rates announced by the White House a week ago – just before a previous 1 August deadline was due to elapse – were in place as of a minute past midnight Washington time on Thursday.

Just before midnight, Trump claimed on social media that billions of dollars would start flowing into the US as a result of the tariffs.

“The only thing that can stop America’s greatness would be a radical left court that wants to see our country fail,” the president wrote in capital letters, referencing an ongoing case in the US court of appeals which is considering whether he exceeded his authority in imposing the “reciprocal” tariffs.

The rates range from 41pc on war-torn Syria to 10pc for the UK and will be applied on top of the usual tariffs applying to products imported to the US.

This means that while Brazil’s “reciprocal” level is 10pc, its total rate is 50pc after an executive order imposed a 40pc additional levy from Wednesday linked to the prosecution of the country’s former president Jair Bolsonaro.

The EU is the only trading partner where its baseline rate – set at 15pc after a framework deal – will include previous tariffs. It means, for example, cheeses that are normally hit with import duties of 14.9pc will be taxed at 15pc and not 29.9pc.

Since the announcement late on Thursday last week, governments around the world have been racing to try to reach deals to avert border taxes they fear could deter investors and result in job losses.

President Lula Da Silva talks on 5 August about the tariffs that President Trump will apply to Brazil.