Donald Trump Tariffs News Live Updates: Nations scramble to negotiate with US, stock markets shrug at levies imposition

Pharma giants AstraZeneca, Bayer and Boehringer Ingelheim on Thursday announced investments in Mexico worth hundreds of millions of dollars, despite trade tensions between the country and the United States.

Britain’s AstraZeneca and Germany’s Bayer and Boehringer Ingelheim, together with Mexico’s own Carnot Laboratories, unveiled plans to plough a combined $600 million into their Mexican operations.

The announcement comes as Mexico scrambles to avert a 30-percent tariff on many of its exports to the United States, which had been meant to take effect last week but which Trump agreed to delay by 90 days.

German industrial production slumped in June to its lowest level since the pandemic in 2020, data showed Thursday, underlining the fragility of Europe’s top economy even before US President Donald Trump’s new tariffs kicked in.

Factory output fell 1.9 percent month-on-month, federal statistics agency Destatis said, steeper than a drop of 0.5 percent forecast by analysts polled by financial data firm FactSet.

There were particularly heavy falls in the machinery and pharmaceutical sectors, helping to drag overall output down to levels last seen in May 2020 during the coronavirus pandemic.

Destatis also made a major revision to May industrial production data, saying the indicator fell 0.1 percent. It had previously reported a healthy rise of 1.2 percent.

ING bank analyst Carsten Brzeski said the dire data could prompt a downward revision to an already poor initial estimate showing that the economy shrank slightly in the second quarter.

“This is bad news,” he said. “At face value, industry remains stuck in a very long bottoming out.”

The Bank of England on Thursday cut its key interest rate by a quarter point to four per cent, the lowest level in 2.5 years, as it bids to boost a UK economy threatened by US tariffs.

Alongside the expected decision, the BoE forecast British economic growth to hit 1.25 per cent this year, slightly better than the central bank’s previous estimate of one percent.

“The direct impact of US tariffs is milder than feared but more general tariff-related uncertainty still weighs on sentiment,” the BoE said in a statement after studying data gathered by UK businesses.

London and Washington reached an agreement in May to cut levies of more than 10 per cent imposed by US President Donald Trump on certain UK-made items imported by the United States, notably vehicles.

Stocks rose on Wall Street early Thursday (August 7), extending a recent winning streak even as a new round of US tariffs took effect at midnight under President Donald Trump’s latest trade policy.

The White House had signalled the move in advance, raising import duties from 10 per cent to between 15 per cent and 41 per cent on goods from several trading partners. The increases include fresh tariffs on Indian imports and a 100 per cent levy targeting semiconductor companies that do not manufacture in the United States.

But investors appeared largely unfazed, with optimism about the economy outweighing trade concerns.
About 20 minutes into the session, the Dow Jones Industrial Average was up 0.4 per cent at 44,361.65. The S&P 500 climbed 0.5 per cent to 6,379.11, and the Nasdaq Composite jumped 0.9 per cent to 21,357.96, topping its all-time closing high.

“The chip tariffs certainly sound terrible on the headline,” said Steve Sosnick, chief strategist at Interactive Brokers. “But there’s so many exemptions… so it’s perceived to be having so many loopholes that it’s not bad news.”
Sosnick described Thursday’s mood as “relentlessly positive,” with investors interpreting most developments in a favourable light.

Markets also got a boost from overseas, where the Bank of England cut its key interest rate by a quarter point to 4 per cent, the lowest level in two and a half years. The move added to hopes that global central banks remain supportive of growth.

Among individual stocks, Intel dropped 1.3 per cent after Trump publicly called on CEO Lip-Bu Tan to step down. The move came after a Republican senator raised concerns over Tan’s ties to Chinese tech firms, citing national security risks.
Eli Lilly plunged 13.1 per cent despite reporting a sharp rise in profits on higher revenues. The drugmaker also released results from a trial of its experimental weight loss pill. While initial findings looked promising, analysts at Briefing.com noted the data suggested the drug may be less effective than rival products under development.

Tougher US trade penalties on goods originating in one country but re-shipped from another are not expected to be enforced immediately following the rollout of new US tariffs, Reuters cited three people in Southeast Asia familiar with the matter as saying.

Southeast Asian countries such as Vietnam and Thailand had been explicitly flagged by White House officials for allegedly enabling the so-called transshipment of Chinese goods to the US: items that would otherwise face higher tariffs if sent directly from China.

The Trump administration introduced tariffs on dozens of countries on Thursday, including a provision in an executive order that said products “determined to have been illegally rerouted to conceal their country of origin” would face extra duties of 40 per cent. However, the order did not define what constitutes “transshipment.”

US imports from the region’s largest Southeast Asian economies, which are heavily dependent on exports, are now subject to average tariffs of about 19 per cent. This figure is lower than the more severe rates previously threatened.

Current US customs guidance allows goods from countries without a free trade agreement with Washington, such as those in Southeast Asia, to be labelled as produced in the country where they undergo a “substantial transformation” — even when their components are entirely sourced from another country, such as China.

With no updated US rules on origin requirements or a clear definition of “transshipment,” Southeast Asian officials have told exporters that existing regulations remain applicable.

This interpretation narrows transshipment violations to illegal actions such as the use of “forged export certificates or documents obtained illicitly.”

“Currently, all exported goods (from Thailand) are subject to a 19% rate because there are no rules on transshipment yet,” said Arada Fuangtong, head of the Thai Commerce Ministry’s foreign trade department, speaking to Reuters on Thursday.

Her view was echoed in Vietnam, where US officials reportedly told business representatives that a 20% tariff would apply to Vietnamese exports, even when those goods are assembled from fully Chinese-made components, according to a source familiar with the talks.

Trade consultants point out that the rules remain vague, and many have already advised clients even prior to the tariff hike to ensure at least 40 per cent of local content in their US-bound goods. This is “to be on the safe side,” one consultant said.

President Cyril Ramaphosa called President Donald Trump ahead of the US imposition of 30-percent tariffs on South African exports Thursday and the leaders agreed to “further engagements”, the government said.

The South African government has been negotiating hard to avoid the tariffs, the highest in sub-Saharan Africa, which it says could cost around 30,000 jobs.

The presidents’ telephone call on Wednesday was about bilateral trade matters, Ramaphosa’s office said.

“The two leaders undertook to continue with further engagements recognising the various trade negotiations the US is currently involved in,” it said in a statement.

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

Ramaphosa “reached out through a phone call to President Trump yesterday morning as part of bolstering South Africa’s negotiation efforts on the trade agreements,” the minister in the presidency said separately.

Minister Khumbudzo Ntshavheni told journalists that Ramaphosa “has been committed to reaching a deal as quick as possible”.

South Africa’s failure to reach a new trade deal has been criticised at home, including by parties in the coalition government which have accused Ramaphosa and his team of diplomatic missteps.

The seafood industry of Brazil is pressuring the federal government for immediate relief following the imposition of 50 per cent tariffs on it by the US.  There are mounting fears of job losses and bankruptcies as a result of Washington’s actions.

Brazilian fishing companies sell close to $400 million worth of seafood to the US a year: roughly 70 per cent of the sector’s annual exports.

“This situation renders our business unviable,” Reuters cited Arimar França Filho, the head of a fishing union in Brazil’s northeastern state of Rio Grande do Norte, as saying. “While the domestic market can absorb some of our production, it cannot take it all, and we cannot have all our boats fishing solely for Brazil.”

The demand from the Brazilian fish industry is for an emergency credit line of $165 million. It is also pushing the government to deepen negotiations aimed at reopening the European market, which has been closed to Brazilian fish exports since 2017.

There is no logic or reason behind the Trump administration’s “unilateral” move to impose 50 per cent tariffs on Indian exports to the US, a senior Indian diplomat said on Thursday.

Negotiations between the US and India continue even after the move, Secretary, Economic Relations, Ministry of External Affairs, Dammu Ravi told reporters hours after Washington doubled the tariffs on Indian goods.

“This is a unilateral decision. I don’t think there is any logic or reason in the way it is done,” Ravi told reporters on the sidelines of the LIDE Brazil India Forum here.

Russian President Vladimir Putin is set to visit India soon, National Security Adviser Ajit Doval said during a visit to Moscow. While the dates are yet to be finalised, Russian state news agency Sputnik reported that the visit is likely to take place in late August.

“We have got a special, long relationship and we value this relationship. We have had high-level engagement and these high-level engagements have contributed very substantially. We are very excited and delighted to learn about the visit of President Putin to India. I think the dates are almost finalised now,” NSA Ajit Doval said.

The announcement comes just a day after US President Donald Trump signed a new executive order imposing an additional 25 per cent tariff on imports from India. The move, published on the White House website, cited New Delhi’s continued purchase of Russian oil as the reason for the punitive measure.

“India is currently directly or indirectly importing Russian Federation oil,” the order stated, calling it “necessary and appropriate” to raise duties under national emergency provisions linked to Russia’s invasion of Ukraine.

South Korea narrowly avoided steep US tariffs after sealing a high-stakes trade deal with Washington, capping new import duties at 15 per cent, instead of the 25 per cent originally set to take effect from Friday.

According to a report by The Korea Herald, in exchange, Seoul pledged a $350 billion investment package along with $100 billionn energy imports from US and most favoured nation status to US.

The agreement, reached just hours before the deadline, suspends the near-zero tariff regime under the 2012 Korea-US Free Trade Agreement and introduces a new “reciprocal” rate similar to deals recently struck with Japan and the European Union.

The newly installed government in Seoul moved quickly to craft a deal acceptable to Washington, negotiating up from an initial $100 billion offer before agreeing to the final $350 billion package, below Japan’s $550 billion commitment to the US.

India has emerged as one of the most severely impacted nations, now facing a 25% tariff on a wide range of exports, with that figure set to double to 50% in three weeks. The White House cited New Delhi’s continued purchases of Russian oil as justification. The Federation of Indian Export Organisations estimates that nearly 55% of India’s exports to the US — including textiles, leather, seafood, and gems — are now directly affected.

Brazil has also been hit hard, with tariffs on key goods such as coffee, beef, and sugar jumping from 10% to 50%. However, some exemptions were granted for orange juice and civil aircraft. The measures come amid tensions between Washington and Brasília over the ongoing trial of former Brazilian President Jair Bolsonaro, a close ally of Trump.

The European Union, Japan, and South Korea now face a 15% tariff on many of their exports. These increases were introduced despite recent deals struck with Washington, which helped them avert even steeper tariffs. However, negotiations remain fraught. The EU is pushing hard for carveouts for key industries such as wine, with American industry groups also urging exclusions. Japan, meanwhile, is at odds with the US over whether these new tariffs stack atop existing levies. Japanese car imports already face a 25% tariff, prompting Toyota to slash its annual profit forecast by 14%.

Switzerland failed to secure an exemption and is now subject to a 39% tariff on selected goods. In response, the Swiss government convened an emergency meeting on Thursday to assess economic fallout and potential countermeasures. Smaller economies have been hit even harder. Myanmar, Syria, and Laos now face tariffs between 40% and 41%, some of the highest punitive rates under the new structure.

China has thus far avoided inclusion in this latest round of tariff hikes due to a temporary truce with the United States, but that agreement is set to expire on August 12. Chinese exports to the US dropped 21.7% last month, according to official figures, while shipments to Southeast Asia and the EU climbed. The uncertainty around the truce’s renewal leaves room for further escalation.

The tariff order also includes a 100% duty on many semiconductor imports, though exemptions were offered to companies investing in the United States. Taiwanese chipmaker TSMC was among those exempted, leading to a surge in its share price. However, other Asian manufacturers were not as fortunate and saw stock declines in response.

Indian equities slid for a third consecutive session on Thursday as investor sentiment soured following the United States’ decision to impose steep new tariffs on Indian goods and continued foreign investor outflows.

By 1:40 pm local time, the benchmark Sensex was down 719.38 points, or 0.89 per cent, at 79,824.61, while the Nifty fell 220.80 points, or 0.9 per cent, to 24,353.40. Market breadth was sharply negative, with 2,588 stocks declining, just 915 advancing, and 99 remaining unchanged.

The sell-off followed US President Donald Trump’s announcement of a 50 per cent tariff on Indian imports, citing India’s ongoing purchases of Russian oil. The move, which doubles previous duties, prompted a strong rebuke from New Delhi, which labelled the action “unfair, unjustified and unreasonable.”

Export-driven sectors such as textiles, marine products, and leather are expected to bear the brunt of the new tariffs.

If implemented, a 50 percent tariff could significantly impact trade flows, weigh on economic growth and trigger a near-term knee-jerk reaction in domestic markets, Mahesh Patil, chief investment officer at Aditya Birla Sun Life AM told Reuters.

India is bracing for a potential economic blow as US President Donald Trump threatens to hike tariffs on Indian imports to 50 per cent unless a trade deal is reached within weeks. The move could disrupt a trade relationship worth nearly $87 billion and impact sectors critical to India’s economy.

Negotiations between the two countries have stalled after five rounds, largely due to US demands for greater access to India’s farm and dairy markets and India’s continued purchases of Russian oil. A US trade delegation is expected in New Delhi later this month for further talks.

Prime Minister Narendra Modi, without directly referencing the tariffs, said Thursday he would not compromise on protecting India’s farmers, dairy industry, and fishermen. Still, officials said India may consider tariff cuts on select U.S. products like almonds and cheese.

India is also looking to rally support from other developing nations hit by the US tariffs. President Luiz Inácio Lula da Silva of Brazil, another major target, said he would speak to Modi and China’s Xi Jinping to coordinate a BRICS response.

Should talks fail, India faces steep economic risks. Most exports to the US, including garments, gems, and petrochemicals, could be priced out of the market. Pharmaceuticals may be the only sector spared. Broader consequences could include tighter restrictions on US work visas and outsourcing, which have long benefited India’s IT sector.

Siemens Chief Financial Officer Ralf Thomas weighed in on the ongoing tariff tensions between Switzerland and the United States, suggesting the issue is far from resolved.

“I suspect the last word has perhaps not yet been spoken,” Thomas said during a press conference on Siemens’ quarterly results.

“There are always negotiations, sometimes even renegotiations, and it would therefore be irresponsible to immediately break out into major activities with every single announcement on the subject,” he said.

Danish shipping titan AP Moller-Maersk reported a 26.5 per cent drop in its second-quarter net profit on Thursday, a decline attributed to ongoing market challenges.

Despite this setback, the company raised its full-year outlook, buoyed by robust demand in regions outside the United States, even as President Donald Trump’s tariff policies continue to stir global trade uncertainty.

“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 a statement.

At his shrimp farm on the southwestern tip of Java, Denny Leonardo’s business plans have been thrown off course by US import tariffs.

Leonardo had hoped to expand his farm by adding 100 new ponds to the existing 150 this year. But those plans stalled when US orders dropped sharply following Donald Trump’s initial tariff threats in April.

A new 19 per cent tariff–lower than the earlier proposed 32 per cent–is set to take effect this week after a deal with Washington in July. Still, Leonardo is already feeling the pinch.

“With the US pressuring Indonesia’s exports, everyone is now scrambling to diversify and cut reliance on the American market,” said the 30-year-old prawn farmer.

US President Donald Trump on Wednesday announced an additional 25 per cent tariff on Indian goods, citing India’s continued oil trade with Russia. The new tariffs, set to take effect from August 28, could push duties on some Indian exports up to 50 per cent, among the highest imposed on any US trade partner.

American media reacted sharply to the move, calling it a major escalation that could strain ties between Washington and New Delhi. While coverage varied in tone, most reports highlighted how the decision could complicate a relationship that had appeared to be on friendly terms until now.

Switzerland’s federal government has announced an “extraordinary meeting” on Thursday afternoon, shortly after its delegation returns from Washington. The team had been in the US to persuade President Donald Trump not to go ahead with steep tariffs on Swiss imports.

“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,” the government posted on X.

US President Donald Trump has introduced 25 per cent additional tariffs on India, claiming it’s a response to New Delhi’s continued purchase of Russian oil amid war with Ukraine.

However, as Peter Baker, Chief White House Correspondent for The New York Times, said in a X post, “China buys more Russian oil than India and Trump has not targeted it or other Russian customers for their purchases,  so there may be more to this.”

Toyota Motor, the world’s largest carmaker, has slashed its full-year operating profit forecast by 16 per cent, citing a stronger yen and rising US import tariffs.

The company now expects US tariffs to dent its annual profit by 1.4 trillion yen ($9.5 billion).

Earlier, Toyota had estimated a smaller impact of 180 billion yen for April and May but had not released a full-year estimate until now.

US President Donald Trump announced that a fresh wave of tariffs on multiple trading partners has officially come into effect.

Posting on Truth Social at midnight, Trump wrote, “Billions of dollars in tariffs are now flowing into the United States of America!”

Earlier, he had said, “Reciprocal tariffs take effect at midnight tonight! Billions of dollars—mostly from countries that have taken advantage of us for years—will start coming in.”

He further warned that, “The only thing that can stop America’s greatness is a radical left court that wants to see our country fail.”

Reacting to US President Donald Trump’s decision to slap an additional 25 per cent tariff on Indian imports over Russian oil purchases, Congress MP Shashi Tharoor said the move could seriously hurt India’s trade prospects.

“I don’t think that’s particularly good news for us,” Tharoor said, adding that with the total tariff now at 50 per cent, Indian goods could become unaffordable in the US market. “Especially when you compare these figures with the tariffs imposed on our competitors,” he noted.

Steep new US tariffs took effect Thursday on dozens of countries, marking a major escalation in Donald Trump’s push to overhaul global trade.

Under an executive order signed last week, tariffs rose from 10 per cent to between 15 per cent and 41 per cent for a wide range of economies. Products from the European Union, Japan, and South Korea now face a 15 per cent duty, despite earlier agreements with Washington.

India faces a 25 per cent tariff, which is set to double in three weeks after additional penalty, while Syria, Myanmar, and Laos have been hit with the highest rates, up to 41 per cent.

Trump celebrated the move on Truth Social just after midnight, posting, “IT’S MIDNIGHT!!! BILLIONS OF DOLLARS IN TARIFFS ARE NOW FLOWING INTO THE UNITED STATES OF AMERICA!”

Asian shares rose on Thursday, led by strong gains in major chipmakers after Donald Trump announced that companies investing in the US would be spared from a looming 100 per cent tariff on semiconductors.

The market surge followed a strong session on Wall Street and extended the previous day’s rally, fuelled by expectations that the Federal Reserve may cut interest rates next month.

A day ahead of sweeping tariffs on dozens of countries, Trump said, “We’re going to be putting a very large tariff on chips and semiconductors,” adding that the rate would be “100 percent,” though he gave no timeline for implementation.