The so-called “mutual” tariffs of US President Donald Trump came into force on Thursday and set up many tasks for many of the country's trading partners in the USA
“It is midnight !!! billions of dollars in tariffs now flow to the United States of America!” Trump wrote social on the social media platform.
In an earlier post, Trump had said that the tariffs were aimed at “countries that have been exploiting the United States for many years”.
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Trump last week – before his tariffs on August 1st – withdrawn the collective bargaining prices and returned the deadline for August 7th.
The steepest tasks include 41% of Syria, and Laos and Myanmar's 40% rate, while Switzerland-after he is not successful in a last-minute scramble for a deal with 39% tariffs.
The Swiss negotiators traveled to Washington DC this week to get talks after the country's higher rate was surprised for many, but so far no deal seems to have been agreed. An update is expected later on Thursday by the Swiss government.
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Regardless of this, Brazil and India are now exposed to 50%duties. While the Brazil's tariffs apparently seem to have integrated, the interest rate of India is initially 25% and will later increase to 50% later this month, according to an order from the executive regulation signed on Wednesday. Trump said his tariffs in India were associated with his current purchases of Russian oil.
In the meantime, other countries and regions were able to vote for trade agreements with the United States. This includes the European Union, Japan and South Korea – which are now exposed to 15% tariffs, as well as in Great Britain, which negotiated an interest rate of 10%.
Others, including China and Mexico, remain in the balance. China is initially involved with the United States with the United States with the United States, while previously announced prices for Mexico are being tackled.
“This game is not over”
According to Bill Papadakis, macrost strategist at Lombard Odier, Trump's recent tariff announcements – including higher tasks on India and threats of 100% tariffs for chips – “This game is not over yet”.
“A certain optimism has been built up recently, since general uncertainty has fallen in general,” he told CNBC's “Europe Early Edition” on Thursday and pointed out that several businesses were done and Trump has declined some of his threats.
“But we shouldn't be overly optimistic either,” he warned, since the effects of tariffs on economic growth and inflation are not yet clear.
Beat Wittmann, chairman and partner of Porta Advisors in Zurich, found that sharp tasks such as those who are confronted by India and Switzerland should not surprise.
“You only watch how Trump treats neighbors, Canada, and then you can imagine the rest. Welcome to this new world,” he told CNBC's “Squawk Box Europe”.
Wittmann also burdened Switzerland because it was reduced by the tariff rate.
“What should Switzerland do? Recognize that we live in a world of political decision -makers and that these other three superpowers – China, EU and the USA and everyone else – in various degrees,” he said.
“The only thing you can do is at short notice to be flexible to be adaptive. But you know that you have to become more and more independent yourself and structurally.”
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