'Billions of dollars now flowing into US': Trump's new tariffs come into effect in major trade war escalation

US President Donald Trump’s August 7 tariff deadline has ended, meaning that his sweeping levies have now come into effect.

Just ahead of the midnight deadline (local time), the US president took to Truth Social to declare: “IT’S MIDNIGHT!!! BILLIONS OF DOLLARS IN TARIFFS ARE NOW FLOWING INTO THE UNITED STATES OF AMERICA!”

In a bold move, Trump earlier announced a 50 per cent tariff on India, set to take effect on August 27, unless the country halts its purchases of Russian oil.

The tariff announcement coincides with Trump’s escalating pressure on the technology sector. He warned of a 100 per cent tariff on foreign-made computer chips, urging tech giants to bolster domestic manufacturing.

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The White House’s influence was evident when Apple, under mounting pressure, unveiled a massive $100 billion investment to expand its US-based production. The move is seen as a direct response to Trump’s call for companies to bring manufacturing back to American soil.

In his statement, Trump said that “big amounts of money would flow in from countries that have ‘taken advantage’ of the US for years.” He framed the tariffs as a corrective measure to level the playing field for American businesses.

“The only thing that can stop America’s greatness would be a radical left court that wants to see our country fail!” the Republican leader stated.

Last week, Trump signed executive orders outlining tariff rates for nearly 70 countries, with duties ranging from 10 per cent to significantly higher rates for nations like Laos, Myanmar, and Syria.

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As the August 27 deadline approaches, all eyes are on India’s response to the oil-related ultimatum, while the tech industry braces for the potential impact of Trump’s proposed chip tariffs.

As trade tensions simmer, several major economies have successfully negotiated lower tariffs with the US, sidestepping the steep rates threatened by former President Donald Trump earlier this year.

Countries like the United Kingdom, Japan, and South Korea have secured agreements to reduce the tariffs imposed on their goods, marking a significant step in stabilising their trade relationships with Washington.

The European Union has also made headway, striking a framework deal with the US that sets a 15 per cent tariff on goods exported from the trading bloc. This agreement reflects EU’s efforts to maintain economic ties despite the looming threat of higher duties.

In Asia, Taiwan, a key US ally, faces a 20 per cent tariff on its exports. Taiwanese President Lai Ching-te described the rate as “temporary,” stressing that negotiations with the US are going on.

Meanwhile, Canada has faced a sharper response. Last week, Trump escalated the tariff rate on Canadian goods from 25 per cent to 35 per cent, accusing the country of having “failed to cooperate” in stemming the flow of fentanyl and other drugs across the border. This move has heightened tensions between the two North American neighbours, raising questions about the future of their trade relationship.