Taiwan says 20% US tariff rate is ‘temporary’
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More news: The 20% tariff on Taiwanese exports to the US has been described as “temporary” by Taiwan’s President Lai Ching-te, who addressed reporters on Friday, and reiterated he will continue advocating for a “reasonable” rate.
In an earlier statement, Lai said “due to the scheduling of the [trade] negotiation process, the Taiwan-US sides have not yet concluded the final summary meeting. Therefore, the US has first announced a provisional tariff rate of 20% for Taiwan”.
“Once an agreement is reached in the future, there is hope that the tariff rate will be reduced,” Lai said.
Cambodia will scrap tariffs on US goods, buy Boeing aircraft under trade deal
More news: Cambodia will remove all tariffs on US imports and has committed to buying upwards of 20 Boeing 737 Max aircraft under a trade deal with the US.
Deputy Prime Minister Sun Chanthol said state-owned Air Cambodia is negotiating a deal for 10 aircraft, with the option for 10 more, according to Bloomberg. The total price or planned delivery schedule were not disclosed.
“In order to improve the trade imbalance, they suggested we look into tariff barriers, non-tariff barriers, and also any products we can acquire from the US,” Sun said. “We have zeroed out our tariffs.”
He also told Reuters that the 19% tariff rate – down from the 36% threatened in a tariff letter last month and the initial 49% flagged on 2 April – would ensure the country’s garment and footwear manufacturing sector remained competitive, saving it from “collapse”.
Cambodia and Thailand both reached trade agreements with the US a day before Trump’s latest executive order. Earlier in the week, the US President threatened to block deals if the two countries did not end a deadly border conflict.
Australia’s 10% US tariff rate a ‘vindication’ for Albanese govt: Trade Minister
More news: Trade Minister Don Farrell has described Australia’s unchanged US 10% tariff rate as a “vindication” for the government’s negotiating strategy.
While Australia’s tariff rate remains at 10%, New Zealand has been hit with an increased levy of 15%.
In a press conference in Adelaide, Farrell said: “I think this is a vindication for the Albanese government and particularly the prime minister. In a cool and calm way we have conducted diplomacy with the United States”.
“What this decision means, in conjunction with all of the other changes to other countries, is that Australian products are now more competitive in the American market.”
Farrell also flagged that the government will “assist all of our exporters in ensuring we take advantage of this situation and increase the volume of exports” to both the US and other countries.
On 24 July, the Albanese government lifted a de facto ban on US beef imports in a bid for a better tariff deal. Farrell said the government will continue to negotiate for the tariff rate to be cut altogether.
Earlier, a spokesperson for the Trade Minister said that while Australia remains “in the best possible position”, the government “will continue to advocate for the removal of all tariffs in line with our free trade agreement”.
An unnamed senior US administration official told Bloomberg that the 15% tariff rate is being imposed on countries that the US has a modest trade deficit with or have negotiated trade deals. The US ran a US$1.1 billion ($1.7 billion) trade deficit with New Zealand in 2024, according to the Office of the Unites States Trade Representative.
Switzerland hit with increased 39% US tariff, Taiwan gets 20%
More news: Switzerland and Canada are among the countries to be hit with higher US tariff rates while Taiwan and Malaysia face reduced rates, under President Donald Trump’s latest executive order.
Signed on Friday morning AEST, Switzerland will face a 39% levy on exports to the US, up from the 31% rate initially flagged on 2 April.
Canada is also facing an increased tariff rate of 35%, up from the 25% imposed on goods not covered by the US-Canada-Mexico free trade agreement in March. The White House claims that Canada has not "adequately" taken action to "curb the dangerous cartel activity and influx of lethal drugs".
Taiwan will be subject to a 20% tariff rate, down from the 32% rate that was initially threatened on 2 April. This is higher than the 15% rate faced by South Korea and Japan, both of which struck trade deals that include commitments to invest hundreds of billions of dollars in the US.
After four rounds of trade talks Taiwan and US officials reached a consensus on “tariffs, non-tariff trade barriers, trade facilitation, supply chain resilience, and economic security” on Thursday, Taiwan cabinet spokesperson Michelle Lee said.
Thailand and Cambodia will both be subject to 19% tariff rates, down from the 36% rate threatened in US tariff letters sent in July. Earlier this week, Trump threatened to block trade deals with the two countries if they did not end a border conflict.
Malaysia and Indonesia are also facing a 19% levy, down from the 25% and 32% threatened in their respective tariff letters. The 19% rate will also apply to the Philippines, down from 20% flagged in a tariff letter but higher than the 17% initially announced.
South Africa's tariff rate remains unchanged at 30%. India's rate was also locked-in at 25% and is expected to face an additional penalty rate for purchasing Russian military equipment and energy.
The executive order will also place a 40% levy on goods “determined by U.S. Customs and Border Protection to have been transshipped to evade applicable duties”.
The new tariff rates will commence on 7 August, an extension on the initially expected 1 August date. Exemptions will be made for goods that are shipped before the commencement date but arrive after the tariffs are meant to be effective, up to 5 October.
Trump locks in country-specific tariffs, 10% global baseline
The news: US President Donald Trump has issued a new executive order that cements swathes of new tariff rates on 69 countries and territories, with the rest of the world to be hit with a baseline rate of 10%.
This means Australia has avoided an increase to the initial 10% tariff rate flagged on 2 April. The new tariff rates will commence on 7 August.
The numbers: Under a new executive order, countries and territories that negotiated US trade deals like Japan, South Korea, and the European Union decrease from what was initially threatened on 2 April and in subsequent tariff letters.
However, Canada will face an increased tariff rate of 35%, up from 25%, on goods that were not covered by the US-Canada-Mexico free trade agreement, as previously threatened.
The context: The countries named in an annex to the latest executive order will face new tariff rates as high as 41%, in the case of Syria.
All other countries will be subject to a 10% baseline rate. Trump had previously floated the idea of lifting the global baseline rate to 15%.
