President Trump on Wednesday said that reciprocal tariffs on US trading partners would range from 15% to 50%, with countries the administration views as difficult receiving the higher rate.
“We’ll have a straight, simple tariff of anywhere between 15% and 50%,” the president said at an AI summit in Washington, D.C. “We have 50 because we haven’t been getting along with those countries too well.”
Previously, Trump had made comments suggesting tariff rates would remain lower, around 10% or 15%.
Meanwhile, the US and European Union are closing in on a trade and tariff deal, multiple reports said Wednesday, even as the EU prepared a possible retaliatory package on over $100 billion worth of US goods.
The Financial Times reported that the deal would see US tariffs on EU imports dip to 15%, instead of the 30% President Trump has threatened from Aug. 1. Bloomberg reported the 15% tariff rate would apply to “most products.”
Such a deal would be similar to one Trump announced with Japan on Tuesday, which includes a 15% tariff on imported goods, while the country will invest $550 billion into the US.
Earlier on Tuesday, Trump also said the US had also struck a trade deal with the Philippines, which will see the country’s imports face a 19% tariff into the US. Trump said US exports will face no import tax in the Philippines as part of the deal.
The White House also unveiled new details of a confirmed trade agreement with Indonesia too. Yahoo Finance’s Ben Werschkul reported that a 19% tariff will apply to Indonesian goods, as well as a 40% rate on any “transhipped” goods. US officials said no tax would apply to “99%” of US imports.
The deal developments come as prospects for larger pacts with India and Canada remain in question. Trump has threatened 25% to 35% tariffs on those larger trade partners.
Trump has also said he would soon send letters to over 150 smaller US trade partners, setting blanket tariff rates for that large group. Trump has already sent letters to over 20 trade partners outlining tariffs on goods imported from their countries.
Treasury Secretary Scott Bessent on Tuesday said he expected many deals to take shape over the next several days.
Read more: What Trump’s tariffs mean for the economy and your wallet
Here are the latest updates as the policy reverberates around the world.
LIVE1489 updates
Trump lifts tariff baseline rate, warns countries face 15-50% range
President Trump appears to have raised the minimum tariff rate to 15%, up from 10%, as he prepares to set new reciprocal tariffs before his August 1 deadline.
“We’ll have a straight, simple tariff of anywhere between 15% and 50%,” Trump said Wednesday at an AI summit in Washington. “A couple of — we have 50 because we haven’t been getting along with those countries too well.”
Trump’s latest statement that tariffs would begin at 15% is a new twist in his efforts to impose duties on almost every US trading partner.
The US and Japan reached a trade agreement this week of 15%, which could be one reason why the US president has decided to up the ante by increasing the baseline tariff rate.
The European Union said on Wednesday that it is getting ready to impose 30% tariffs on over $100 billion worth of US goods if no deal is made and if President Trump decides to follow through with his threat to impose that rate on most of the bloc’s exports after the Aug. 1 deadline. Reports from The Financial Times on Wednesday have said that the EU and the US are now closing in on a 15% trade deal on European imports.
Bloomberg News reports:
Read more here.
EU, US reportedly close in on trade deal
The Financial Times reports:
And more from Bloomberg:
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Trump says he will trade ‘Tariff points’ for open markets to the US
President Trump pushed one of his priorities in negotiating trade deals on Wednesday, and it wasn’t exactly trade deficits. He suggested the US would reduce tariffs in exchange for countries opening their markets, i.e., putting zero tariffs on American-made products.
“I will always give up Tariff points if I can get major countries to OPEN THEIR MARKETS TO THE USA,” Trump posted on Truth Social. “Another great power of Tariffs. Without them, it would be impossible to get countries to OPEN UP!!! ALWAYS, ZERO TARIFFS TO AMERICA!!!”
Trump’s social media post came after the European Union announced it was preparing countermeasures against US tariffs, including a 30% tariff on over $100 billion worth of goods. Meanwhile, Indonesia agreed to drop its tariffs on US goods to 0% for 99% of trade.
Detroit Three automakers raise concerns about Japan trade deal
A group representing General Motors (GM) Ford (F) and Chrysler-parent Stellantis (STLA) raised concerns on Tuesday about the US-Japan trade deal, which could cut tariffs on auto imports from Japan to 15% while leaving tariffs on imports from Canada and Mexico at 25%.
Reuters reports:
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SAP falls as trade war concerns temper strong cloud growth
Bloomberg News:
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EU readies over $100B no-deal plan to match US 30% tariff
The European Union announced on Wednesday it plans to hit the US with 30% tariffs on over $100 billion worth of goods in the event that no deal is made and if President Trump decides to follow through with his threat to impose that rate on most of the bloc’s exports after Aug. 1.
A European Commission spokesman said that the first part of countermeasures would combine an already approved list of tariffs on $24 billion of US goods and a previously proposed list on an additional on $83 billion of American products into one package.
The US exports, which would include goods such as Boeing (BA) aircraft, US-made cars and bourbon whiskey would all face heavy tariffs that match Trump’s 30% threat.
Bloomberg News reports:
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European auto shares rally after US-Japan trade deal
Bloomberg News reports:
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Copper-laden ships race to reach US ahead of Trump’s 50% tariffs
At least four ships are rushing to reach US ports before August to avoid new import tariffs, a report from Bloomberg News claimed on Wednesday.
Bloomberg News:
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Enphase falls on downbeat outlook as Trump policies hit
Enphase Energy (ENPH) said on Tuesday that steep import tariffs had impacted its gross margin, causing the solar panel maker’s shares to fall 6% in premarket trading on Wednesday.
Enphase forecast third-quarter revenue below Wall Street estimates on Tuesday and said President Donald Trump’s import tariffs had impacted its earnings.
Reuters reports:
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Taiwan aims to strike deal with US in new round of talks
Bloomberg News reports:
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Japanese auto stocks surge as US announces lower-than-expected tariffs
Shares of Japanese automakers pumped after US President Donald Trump announced a trade deal with Japan, lowering the previously discussed 25% auto tariffs on Japanese vehicles to 15%.
Trump hailed the deal as the “largest Deal ever,” claiming Japan would invest $550 billion in the US and allow greater access to its markets, including for American autos, trucks, and agricultural goods.
Honda (HMC) surged 9.8%, Toyota (TM) jumped 13.9%, Nissan (7222.T) gained over 5%, and Mazda (7261.T) soared 17.7%. Mitsubishi Motors (7211.T) rose over 12%.
According to Japan’s NHK, the revised tariff structure includes a 12.5% cut plus a 2.5% “Most Favored Nation” base rate. The move comes as Japanese auto exports to the US have suffered, plunging 26.7% in June.
Read more here.
Trump: ‘I’ve just signed the largest trade deal in history with Japan’
President Trump announced overnight that his team and Japan have finally reached a trade deal, which includes a 15% tariff on imported goods from Japan, and the country will invest $550 billion into the US.
Trump, who made the announcement during a White House reception with members of Congress and later on Truth Social, called it the “largest trade deal in history” in reference to Japan.
The deal wasn’t easy to achieve. Japan’s Prime Minister Shigeru Ishiba had hoped to speak with Trump at the G-7 meeting back in June, but earlier this month Trump said Japan was “spoiled” and doubted a deal would happen.
The two sides have come a long way, with Ishiba remaining stoic yet firm to maintain his country’s trust while trying to reach an agreement with the US.
Bloomberg News reports:
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Trump announces new details on trade pact with Indonesia
President Trump and his team released new details of a pact announced last week with Indonesia, confirming plans for a 19% tariff on the country and adding a 40% rate on any “transhipped” goods.
The more complete framework of the deal is further confirmation of an agreement with America’s 23rd largest trading partner that will avert 32% tariffs that Trump threatened previously. It also stipulates that “Indonesia is going to drop its tariffs to 0% on over 99% of its trade,” a senior White House official said Tuesday.
The official added that the deal includes the elimination of non-tariff barriers that Trump’s team say hinders American companies, including in areas like pre-shipment inspection requirements, motor vehicle safety standards, and restrictions around US medical devices and pharmaceuticals.
The exact definition of how Trump defines transshipped goods has been a matter of some debate in recent weeks. The deal with Indonesia includes goods not just re-labeled but made with a significant portion of components from a third country and then assembled in Indonesia. It’s a provision also included in a recent deal with Vietnam and is clearly aimed at China.
Indonesian negotiators previously confirmed that a deal had been struck but not all details, with the country president’s spokesperson telling Reuters the negotiations had been “an extraordinary struggle.”
Trump says US has reached trade deal with the Philippines
President Trump said Tuesday the US had reached a trade deal with the Philippines following its president’s visit to the White House.
He posted on Truth Social:
This doesn’t seem to move the needle much for the Philippines, whose imports to the US will see a 19% tariff instead of the 20% Trump had threatened from Aug. 1.
The Philippines is the US’s 29th-largest trade partner.
Copper-laden ships race to reach US ahead of tariffs
Fascinating angle from Bloomberg:
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Coca-Cola CFO on tariffs: ‘We think we can manage’
Coca-Cola’s (KO) CFO said the company is managing President Trump’s tariffs.
“June turned out to be a disappointing month,” Coca-Cola CFO John Murphy told Yahoo Finance on Tuesday. He noted that tariffs continue to create uncertainty heading into the second half of the year.
“We think we can manage absorbing any of the impacts with the various levers that we have at our disposal. It’s always a local decision as to how to utilize those levers, but right now, it’s something that we factored into our rest of year guidance.”
Yahoo Finance’s Brooke DiPalma reports that Coca-Cola reported earnings for its second quarter that topped forecasts.
Read more here.
Bessent says he will meet Chinese officials, discuss tariff deadline extension
US Treasury Secretary Scott Bessent told Fox Business on Tuesday that he plans to meet his Chinese counterpart next week and discuss an extension of an August 12 deadline for higher tariffs. Both China and the US reached a trade truce in London last month to prevent escalating tariffs.
Reuters reports:
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RTX cuts 2025 profit forecast as tariff costs weigh
US aerospace and defense giant RTX (RTX) cut its 2025 profit forecast on Tuesday, citing President Trump’s trade war as the major reason. Shares of the company fell 3% in premarket trading.
Reuters reports:
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GM’s core profit slides in second quarter as Trump’s tariffs bite
Tariffs have started to hit US automaker General Motors (GM), who reported a fall in second quarter core profit of 32% to $3 billion on Tuesday. The automaker said tariffs have sapped $1.1 billion from results as it continues to grapple with President Trump’s challenging trade war.
Reuters reports:
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Canadian boycott of US spirits hurts broader alcohol sales: Trade group
American imports to Canada have dropped sharply due to Canadian provinces’ boycott of US spirits amid the ongoing trade war with the United States, according to a Canadian liquor trade group.
