Trump’s new global tariffs kick in at 10% – business live | Business
Introduction: Trump’s new tariffs start at 10%
Good morning; Welcome to our in-depth coverage of business, financial markets and the world economy.
President Donald Trump New 10% tariffs went into effect today after the US Supreme Court blocked most import duties on Friday.
The president signed an executive order last Friday authorizing the 10% tariff, just hours after the high court’s ruling. He later threatened to raise the rate to 15 percent, but did not officially do so until 12:01 a.m. Washington time on Tuesday, when the 10 percent tax went into effect.
But, Bloomberg Officials at the White House are reportedly working on a formal order that would increase that rate to 15 percent.
This comes after Trump said this week he could use tariffs “in a much more forceful and nasty way.”
Trump’s new tariffs, imposed under Section 122 of the 1974 Trade Act, have triggered uncertainty in some US trading partners, including the UK (which negotiated a 10% rate with the US last year) and the EU.
The EU on Monday paused the ratification of its agreement with the United States last July for the second time in a month, after freezing and then unfreezing the agreement following Trump’s Greenland threats. The agreement was for blanket tariffs of 15% on EU imports, which included previous duties.
Meanwhile, a spokesman in England Keir star playerWhen asked if retaliatory tariffs were an option, he said:
No one wants to see a trade war. No one wants to see a situation escalate. But as I said, nothing is off the table at this stage.
agenda
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05:00 GMT: EU vehicle registrations
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11:00 GMT: CBI Distributor transactions for February
-
14:00 GMT: Case-Shiller US home price index
-
14:15 GMT: Bank of England governor to discuss MPC decision to keep interest rates at 3.75% with Treasury Committee
important events
European markets opened slightly lower this morning as investors digested news of Trump’s latest 10% tariffs.
Britain’s blue-chip FTSE 100 index fell 0.25%. Italy’s FTSE MIB fell 0.4%, the German Dax fell 0.2% and the French Cac 40 fell 0.1%.
The Stoxx Europe 600, which tracks the continent’s largest publicly traded companies, lost 0.2%.
The worst performer in Europe so far is UK-based student accommodation provider Unite Group, whose shares have fallen more than 8 per cent this morning. The company told investors it sold fewer student beds last year after demand from international applicants decreased.
‘New uncertainty’ for UK businesses exporting goods to the US
William BainHead of Trade Policy British Chambers of CommerceHe warns that while a 10% tariff is not as bad as 15% rate threats, changing policies make it difficult for businesses to plan ahead.
He says:
It is not yet clear what will happen next and whether a higher tariff rate is still on the way. Despite the immediate reprieve, there is new uncertainty for British firms exporting goods to the US.
This makes it very difficult for companies to understand the prices and margins they can obtain for export in a few months for the goods currently in production. Inevitably this will affect their sales and the economy.
The BCC has presented the government with a six-point plan to protect against the worst economic consequences from new tariffs and possible further increases.
This includes ongoing negotiations with the US government, interaction with the US Congress, increasing UK Export Finance capacity and reviewing the UK’s Global Tariffs.
“The risk of further tariff woes remains real and the government needs to do all it can to prepare for the worst.”
Not everyone was happy about it Trump’s “Reciprocal” tariffs were ruled illegal by the US supreme court last week.
Fedex He sued the US government, demanding repayment of his share. estimated $175 billion The tariffs increased after the Supreme Court found that Trump overstepped his authority to impose tariffs.
FedEx case named as defendant US Customs and Border Protection (CBP)collects tariffs; agency commissioner rodney scott; and the United States. The case was filed in the US international trade court. The company did not specify an amount in its complaint but said it was seeking a “full refund” of taxes paid to the United States.
The company said in a statement:
Although the high court did not address the refund issue, FedEx took steps to preserve the company’s rights to seek refunds from U.S. Customs and Border Protection as a registered importer.
You can read the full story by my colleague. Gabrielle Canon Here:
New 10% tariff set to last at least 150 days
Trump’s A new global 10% tariff applies under Article 122 of the Trade Act 1974; This provision allows the president to impose the tax for 150 days without congressional approval.
The president used this approach after the high court ruled that he violated the emergency powers law to impose “reciprocal” tariffs on goods imported from countries around the world.
The new tariffs have some exemptions, including for goods that are part of the North American trade agreement between the United States, Canada and Mexico. The decision also includes exceptions for some agricultural products.
It is not yet clear what the impact will be. Britain did not rule out the possibility of retaliation, a spokesman said Keir Starmer “Nothing is off the table,” said the head of the EU Parliament’s trade committee yesterday. Bernd Langehe said yesterday:
“We want the United States to be clear that it respects the agreement because that’s a very important element.”
Trump warned that any country that wanted to “game” the Supreme Court ruling would “face a much higher and worse tariff than the ones they have recently agreed to.” However Jim Reidrelated to German BankHe says it is unclear how the president will react to developments in the UK and the EU.
Currently, the rate is 10%, and White House officials say they are working on a formal order to raise that rate to 15%. Maybe the concern about accumulation is delaying things for now. Late yesterday we also saw the WSJ and Bloomberg report that the administration is preparing new Section 232 national security investigations into several sectors, including batteries, telecom equipment and industrial chemicals.
Note that Trump is giving his State of the Union address tonight, so we may have a better understanding of the next steps on tariffs… net-net we still think the effective tariff rate will fall this year and that the post-SCOTUS world will see lower tariffs than the pre-SCOTUS world.
Introduction: Trump’s new tariffs start at 10%
Good morning; Welcome to our in-depth coverage of business, financial markets and the world economy.
President Donald Trump New 10% tariffs went into effect today after the US Supreme Court blocked most import duties on Friday.
The president signed an executive order last Friday authorizing the 10% tariff, just hours after the high court’s decision. He later threatened to raise the rate to 15 percent, but did not officially do so until 12:01 a.m. Washington time on Tuesday, when the 10 percent tax went into effect.
But, Bloomberg Officials at the White House are reportedly working on a formal order that would increase that rate to 15 percent.
This comes after Trump said this week he could use tariffs “in a much more forceful and nasty way.”
Trump’s new tariffs, imposed under Section 122 of the 1974 Trade Act, have triggered uncertainty in some US trading partners, including the UK (which negotiated a 10% rate with the US last year) and the EU.
The EU on Monday paused the ratification of its agreement with the United States last July for the second time in a month, after freezing and then unfreezing the agreement following Trump’s Greenland threats. The agreement was for blanket tariffs of 15% on EU imports, which included previous duties.
Meanwhile, a spokesman in England Keir star playerWhen asked if retaliatory tariffs were an option, he said:
No one wants to see a trade war. No one wants to see a situation escalate. But as I said, nothing is off the table at this stage.
agenda
-
05:00 GMT: EU vehicle registrations
-
11:00 GMT: CBI Distributor transactions for February
-
14:00 GMT: Case-Shiller US home price index
-
14:15 GMT: Bank of England governor to discuss MPC decision to keep interest rates at 3.75% with Treasury Committee
