New levies hit EU, Japan, South Korea – DW – 08/07/2025

Global stock markets closed on a mixed note on Thursday following the introduction of US President Donald Trump’s tariffs on dozens of countries and a proposed 100% levy on semiconductors.

In the United States, the tech-heavy Nasdaq finished at a record high, while the Dow and S&P 500 closed lower as investors — and nations — evaluate the potential effects of the tariffs.

Dozens of countries now face higher tariffs on exports to the United States.

Products from over 60 countries are subject to tariff rates of 10% or higher. Goods from the European Union, Japan and South Korea will be taxed at 15%. Imports from Taiwan, Vietnam, and Bangladesh will be levied at a rate of 20%.

The Trump administration has said the tariffs will bring revenue and new investment to the United States. But many companies and consumers fear the new levies will push prices up even further.

While decision-makers decide how to approach the new US tariffs, DW is wrapping up these updates of the first day of the new US tariff regime. Thanks for joining us.

BrazilianPresident Luiz InacioLulada Silva and IndianPrime Minister Narendra Modi spoke on the phone on Thursday, agreeing to “defend multilateralism” after the punishing tariffs imposed on imports on both countries by US President Donald Trump.

The call came a day after Trump’s announcement of 50% tariffs on Indian goods, the same taxes imposed on a range of Brazilian goods.

The two leaders also agreed to “confront the economic challenges” posed by the tariffs, while also committing to the bilateral relations between Brasilia and New Delhi.

“A strong people-centric partnership between Global South nations benefits everyone,” Modi said on X following the phone call. 

Many were baffled when Donald Trump slapped a steep 39% tariff on imports from Switzerland.

The Swiss aren’t known for flooding the US with cheap goods, but their outsized role in gold refining is distorting trade data.

Read the full story on why Swiss gold may be behind the large Trump tariffs.

As Switzerland reels under news of the US’ imposition of 39% tariffs on its exports, calls have grown to cancel the Alpine country’s 6-billion franc (€6.4 billion, $7.43 billion) order for 36 F-35A fighter jets from the US defense conglomerate Lockheed Martin.

Swiss politicians across all parties are now urging the government to withdraw from the agreement after President Donald Trump followed through with what are some of the world’s harshest levies on the country, despite last-ditch efforts by Switzerland to avert them.

The F-35A deal had already been a source of contention in Switzerland after government officials admitted they had “misunderstood” exactly how much the planes would cost, with some estimates putting the price as high as 7.3 billion francs.

On Thursday, Swiss President Karin Keller-Sutter said the government was “keeping to” the earlier agreement of buying the jets. She also added that Bern will first pursue further tariff talks with the US before considering any retaliation.

The deal could be discussed in the Swiss parliament as early as September.

The US is a leading buyer of Swiss watches, machinery and chocolate.

India said it will continue buying Russian oil despite President Donald Trump’s threat to impose an additional 25% tariff, which would raise the total tariff on Indian imports to the United States to 50%.

Meera Shankar, a former Indian ambassador to the United States, told DW that India would not change its stance “under threat” of sanctions.

“I think for Indians that becomes very difficult because I think we pride ourselves on our own national self-respect, and so I think that I don’t see this happening anytime in the immediate future,” she said.

She added that the US appears to have “different standards for different countries,” pointing out that China buys more Russian oil than India but is not currently facing an additional tariff.

Shankar said that under former President Joe Biden’s administration, India was encouraged to buy Russian crude, which isn’t sanctioned but is traded under a price cap.

“This helped to stabilize global oil prices at a very difficult time,” she said.

The German Association of the Automotive Industry (VDA) said a promised trade agreement between the European Union and the United States needs to be implemented now to provide the industry with some relief.

“The sectoral tariffs on cars and parts of 27.5%, which have been in place since April and May, respectively, remain in place and place a significant burden on German car manufacturers and automotive suppliers, as well as on transatlantic trade,” VDA President Hildegard Mueller said.

The United States and the EU struck a trade deal under which the Trump administration is applying a blanket tariff of 15% on most EU goods, including cars and auto parts.

The deal is a preliminary framework rather than a comprehensive agreement. Over the coming months, negotiators from Brussels and Washington will draft a detailed text and set a date for the 15% tariff to take effect.

South African President Cyril Ramaphosa discussed trade negotiations in a call with US President Donald Trump, his office said. 

South Africa had attempted for months to negotiate a trade deal with Washington before Trump’s deadline but ultimately failed.

Now, US imports from South Africa are subject to a 30% tariff, as diplomatic relations between the two countries over a range of domestic and international policies have reached a low point.

The tariffs will particularly affect South Africa’s agriculture, automotive and textiles sectors, officials said. However, some products, including copper, pharmaceuticals, semiconductors, lumber articles, and certain critical minerals, are exempt.

“The two leaders undertook to continue with further engagements, recognizing the various trade negotiations the US is currently involved in,” Ramaphosa’s office said.

“Respective trade negotiating teams will take forward more detailed discussions.”

A tariff, or duty, is a tax paid on imported goods, though it can also apply to exports. It is usually a percentage of the item’s value and is based on where the item comes from or what kind of good it is.

Import taxes are paid to the US government by the companies that bring goods into the country.

The United States just enacted varied tariff rates on dozens of America’s trading partners, about 70 countries in total.

President Donald Trump says they will boost US manufacturing and protect jobs. The idea being that foreign goods will be more expensive, making locally manufactured products more competitive. The US government can also raise some revenue through tariffs.

Economists warn it could raise the US inflation rate as companies pass on some or all of their higher costs to American consumers. They also fear it could weigh on growth in the long run.

The US tariffs will also impact the global economy because they disrupt supply chains, raising production costs, and causing trade partners to retaliate. This will result in less trade, slower economic growth, and increased uncertainty in global markets.

Danish shipping giant Maersk said it expects to make more profit this year than previously forecast, thanks to strong demand for ocean freight despite concerns over President Donald Trump’s tariffs.

“Even with market volatility and historical uncertainty in global trade, demand remained resilient, and we’ve continued to respond with speed and flexibility,” Maersk chief executive Vincent Clerc said in an earnings statement.

Often seen as a measure of global trade health, Maersk now predicts worldwide container shipping will grow by 2% to 4% in 2025. 

The company noted that while US imports shrank, that decline was more than balanced out by rising imports in other regions, especially Europe.

The introduction of tariffs on goods entering the United States this Thursday does not apply to China, as the country is on a different tariff timeline and trade negotiations are ongoing.

The US and China hammered out a 90-day truce in May that saw Washington reduce tariffs from 145% to 30%, while Beijing’s retaliatory tariffs on US goods fell to 10% from 125%.

US President Donald Trump said Tuesday that the US was close to a trade deal with China. He even said he would meet his Chinese counterpart, Xi Jinping, before the end of the year if an agreement is reached.

Meanwhile, China’s exports rose, 7.2% year-on-year in July, official data released Thursday showed.

US-bound exports fell 21.7% year over year as Trump’s reduced but still significant tariffs took effect. However, shipments to the European Union rose 9.2%, and exports to ASEAN countries increased by 16.6%.

Indian Prime Minister Narendra Modi said he will not compromise the interests of the country’s farmers and fishermen.

“India will never compromise on the well-being of its farmers, dairy [sector], and fishermen. And I know personally I will have to pay a heavy price for it,” he said.

His statement comes after US President Donald Trump ordered an additional 25% tariff on purchases of Russian oil, raising the total tariff on Indian imports to the United States to 50%.

Modi did not directly mention Trump or the tariffs, but disagreements over opening India’s vast farm and dairy sectors were among the key reasons trade talks with the US collapsed.

India’s Foreign Ministry officially described the new 50% duty on Indian goods as “extremely unfortunate,” adding that “India will take all necessary steps to protect its national interests.”

The Swiss government will hold an extraordinary meeting Thursday afternoon, after its delegation to Washington returned from an attempt to avert 39% tariffs on the country’s exports to the United States.

“Tariffs: After its delegation returns from the USA, the Federal Council will hold an extraordinary meeting in the early afternoon. A statement will follow after the meeting,” it wrote on social media.

Earlier, Swiss President Karin Keller-Sutter hailed a “very good meeting” with US Secretary of State Marco Rubio, but there were no indications that the import tariffs would be reviewed.

Switzerland was stunned by Trump’s decision last week to increase the initially announced tariff from 31% to 39%.

The new rate, effective from Thursday, is much higher than the 15% tariff imposed on goods from the European Union.

The US is a leading buyer of Swiss watches, machinery and chocolate.

New US tariffs ranging between 10% to 50% on dozens of trading partners have gone into effect, affecting imports from dozens of countries

The varied tariff rates apply to imports from about 70 countries.

The move is part of President Donald Trump’s plan to reshape global trade practices he considers unfair to the United States.

Just before the midnight start of the tariffs (Washington time), he wrote on his Truth Social platform: “billions of dollars, largely from countries that have taken advantage of the United States for many, laughing all the way, will start flowing into the USA.”

Trump includes major US allies and trading partners, among them the EU, Japan and South Korea, on that list. They will face a base tariff of 15%.

Some products from Brazil will be subject to duties of up to 50%.

Trump has emphasized the significant increase in federal revenue from import taxes. Those duties are paid by US companies that bring in goods, with analysts saying these duties will be passed onto American consumers who purchase the final products.

The tariff dispute between the United States and India could escalate further as US President Trump ordered an additional 25% tariff on Indian goods and threatened to increase it over India’s purchase of Russian oil.

India has stated it will continue buying Russian oil and criticized the US and Europe for also importing Russian products.

The ongoing trade row is negatively impacting businesses in India.

The US exempted Taiwan’s chipmaking powerhouse TSMC from the Trump administration’s 100% tariff on semiconductor chips, Taipei said on Thursday. 

Taiwan Semiconductor Manufacturing Company (TSMC) is the world’s largest producer of chips and has Nvidia and Apple among its clients.

“Because Taiwan’s main exporter is TSMC, which has factories in the United States, TSMC is exempt,” National Development Council chief Liu Chin-ching told a briefing in parliament.

Not all Taiwanese chipmaking companies are exempt from the announced increase in US tariffs — some of them “will be affected” by the 100% tariff, but their competitors will also face the same levy, Liu said. 

“Taiwan currently holds a leading position in the world, and I believe that if the leader and competitors are on the same starting line, the leader will continue to lead,” Liu said.

The statement by Liu came hours after Trump said that “we’re going to be putting a very large tariff on chips and semiconductors.”