By Elaine Kurtenbach, Associated Press Business Writer
BANGKOK (AP) – US President Donald Trump’s new tariff rate derives a new tariff rate of up to 41% on US imports from dozens of countries on Friday from several countries that negotiated transactions and reduced them from fees announced in April. Others expressed disappointment or dissatisfaction with the time’s escape after reaching the August 1 deadline to strike a contract with American trading partners.
The new rate is expected to take effect on August 7th, but there remains uncertainty about Trump’s next steps: China’s future path, which runs the largest trade surplus with the United States, is unknown after consultations in Stockholm had not signed a contract earlier this week. Trump has yet to say whether to extend the August 12 suspension on high painful import duties on Chinese products.
Reactions from financial markets have been muted. Benchmarks fell in Asia, with South Korea’s Kospi falling by nearly 4% after US allies’ tariff rates set at 15%. The US dollar weakened against the Japanese yen, trading at over 150 yen per dollar.
Regret and disappointment in Canada and Switzerland
Canadian Prime Minister Mark Carney said his government was disappointed by Trump’s move to raise US tariffs on goods from neighbors in the Northern United States from 35% to 35% on Friday. Products introduced from unspecified countries face 40% import duties.
Trump cited what he said was a lack of cooperation in preying on illegal drug trafficking across the northern border. He also denounces Canada’s plan to recognize the Palestinian state and expresses his dissatisfaction with the trade deficit, which was primarily driven by the purchase of US oil.
“Canada only accounts for 1% of fentanyl imports and is working intensively to reduce these amounts even further,” Carney said in a statement.
Many of Canada’s exports to the United States are subject to the United States and Canada agreement and are free of tariffs. However, steel, wood, aluminum and automobiles are subject to even higher tariffs.
Switzerland was upset after Trump ordered a 39% tariff rate on land for luxury watches, pharmaceuticals and financial services. It came from his first proposal of 31% obligation.
“The Federal Council is very sorry that despite bilateral conversations and progress made in Switzerland with a very constructive attitude from the start, the US intends to impose unilateral additional tariffs on imports from Switzerland,” the government said in a post in X.
I’m still working on that
New Zealand officials said Friday they would continue to lobby Trump and cut the 15% tariffs they announced for the country’s exports to the US from the original 10% baseline set in April.
“I don’t think this is a good thing. I don’t think it’s guaranteed,” Trade Minister Todd McCray told Radio New Zealand. Exporters of meat, dairy, wine and agricultural machinery earned a $1.1 billion trade surplus with the US in 2024, according to US trade representative data.
McClay said it reported that New Zealand exporters could absorb 10% tariffs and increase costs and pass them to US consumers. If it increases further, “the equation changes,” he said.
Neither New Zealand nor its neighbor Australia have committed tariff deals with the Trump administration. Australia’s steel and aluminum exports have faced sudden tariffs of 50% since June.
Australia’s Trade Minister Don Farrell said the overall 10% tariff on Australia’s exports to the US was a proof of his government’s “cool and gentle negotiations.” But he said that even that level is not justified. The US exports twice as much to Australia when imported from bilateral free trade partners, and Australia does not impose tariffs on US exports.
Opposed to the 15% tariff rate, Norwegian Prime Minister Jonas Garh Sto told the newspaper VG that Scandinavian countries should have “zero tariffs.” He said the discussion was ongoing.
Japan looks, Taiwan continues to try to trade
Japan’s chief minister, Duty Secretary Hayashi Yoshida, was cautious about welcoming Trump’s executive order to set Japanese tariffs at 15% after both sides agreed to Tokyo’s relief.
“We believe that we need to carefully examine the details of this scale,” Hayashi said. “The Japanese government continues to urge the US to quickly implement measures to implement recent agreements, including reducing tariffs on automobiles and auto parts.”
Taiwan’s President Lai Qingte said the voluntary island has not yet been involved in final negotiations with the US due to difficult schedules and hopes that the final tariff rate will drop further after final talks.
The Trump administration has reduced Taiwan’s tariffs to 20% from the originally proposed 32%. Taiwan is a major supplier of advanced semiconductors required for many products and technologies.
“20% hasn’t been our goal from the start. We hope that further negotiations will give us a more beneficial and reasonable tax rate,” Lai told reporters in Taipei on Friday.
The United States is Taiwan’s biggest ally despite its official recognition of the island. “We want to strengthen Taiwan’s cooperation in national security, technology and multiple fields,” Lai said.
For some trading partners, the relief that tariffs are lower than theirs
Cambodia’s Deputy Prime Minister San Changtor, who is leading trade talks with the US, thanked Trump for setting the tariff rate on Cambodia’s goods at 19%, saying his country will impose zero tariffs on American goods.
Trump proposed Cambodia’s rate in April was 49%, one of the highest in the world. He said the US estimated the average Cambodia tariff on US exports at 97%.
Cambodia has agreed to purchase US products. Sun said he would buy 10 passenger aircraft from Boeing in a deal he hoped to sign later this month. Several other countries had already announced purchase transactions for similar aircraft as part of their trade packages.
Trump had threatened to withhold trade transactions from Cambodia and Thailand if he didn’t end the armed conflict through border territories. The two countries agreed to a ceasefire that began on Tuesday.
Thailand is subject to 19% customs duties. This is the rate that Finance Minister Pichai Chunhavajra said was “a reflection of the strong friendship and close partnership between Thailand and the US.” That’s down from the previously proposed 36%.
“The outcome of this negotiation shows that Thailand must move forward to accelerate its adaptation and build a stable and resilient economy.
Pakistan welcomes trade contracts that fulfill its 19% obligation to exports, saying it is lower than the initial plan of 29%, and the government’s statement said it is a “balanced forward-looking approach” that could boost trade and economic growth.
For Bangladesh, the new 20% tariff has expelled the previous threat of 35% import tariffs on exporters of South Asian clothing and other light-manufactured goods. “That’s good news for our apparel sector and the millions who rely on it,” said Hariru Rahman, the country’s national security advisor and negotiator.
“We have opened up new opportunities to stay competitive in the world and access the world’s largest consumer market,” Rahman said. “While protecting the apparel industry was a top priority, we also focused on purchasing commitments to US agricultural products, which support food security goals and promote goodwill with US agricultural states.”
AP journalists from around the world contributed to this report.
Original issue: August 1, 2025, 7:22am EDT
