Stock markets around the world have opened lower as US President Donald Trump has announced new tariffs on more than 90 countries
An economic adviser to the president says he sees "zero evidence" prices on goods will rise for Americans, but warnings are swirling that tariffs will hit consumers directly
Trump announced higher tariffs for many Canadian goods, but most products are exempted due to a free trade agreement - while Mexico has escaped higher levies for another 90 days
Switzerland, meanwhile, is facing "worse than a worst-case scenario", our Geneva correspondent reports, as rates have skyrocketed to 39%
The US president is touting tariffs as the answer to trade deficits with other nations, but BBC Verify has found the deficit has only widened
Brazilians in Sao Paolo took to the streets in front of the US embassy to protest of Trump's tariffs. The country faces one of the highest rates, 50% on many major exports.
Image source, Reuters
Image source, ReutersThe majority of Trump's new tariffs will come into effect on 7 August.
Here's everything you need to know:
Hanna Samosir
BBC News Indonesia, Jakarta
Indonesia has said it's still trying to get zero tariffs on some commodities, palm oil in particular, in an ongoing negotiation with the US.
Both sides agreed to 19% tariffs in a deal announced in mid-July. The southeast Asian country said the levies would take effect from 7 Aug.
Indonesia’s Coordinating Minister for Economic Affairs Airlangga Hartarto framed it as a victory, saying the rate is the second-lowest in ASEAN countries, after Singapore.
The Southeast Asian country exported 2.2m tons of palm oil to the US last year, accounting for 85% of the US imports.
The US is Indonesia’s second-largest export destination after China, excluding oil and gas.
Other than palm oil; machinery, electronics, clothing and footwear make up most of the exports to the US.
Image source, Getty ImagesSpeaking on the Senate floor this morning, top Democrat Senator Chuck Schumer claims worsening job numbers could point to an economic shutdown ahead.
"It is disturbing to say, but the chickens are coming home to roost on Donald Trump's destructive trade war, and the American people are paying the price," he says.
"If you sow chaos, you reap chaos."
He pointed to an overall drop in jobs and increase in unemployment. Tariffs are "bleeding our economy", he claims.
"If this is what Liberation Day was supposed to look like, then God help us," he says.
By Jake Horton
Yesterday the White House released a list of new tariff rates for dozens of countries, and said these had been adjusted based on "additional information and recommendations from senior officials, among other things".
"Reciprocal tariffs" were first introduced back in April - with a 10% rate for most countries and higher rates for others President Trump called the "worst offenders".
These higher rates were calculated by taking the trade deficit for the US in goods with a particular country, divided by the total goods imported from that country, and then dividing that number by two.
The implementation of the higher rates were paused for most countries to allow a 90-day period for negotiations.
Now, dozens of countries which have been unable to reach trade agreements with the US are being threatened with renewed tariff hikes.
Many of these renewed rates are the same as those initially announced, but some have changed - for instance Switzerland was 31% in April and is now 39%, and Myanmar was 44% and is now 40%.
Unlike the announcement in April, the White House hasn’t provided a specific calculation method this time round - so it’s not clear exactly how these figures have been reached.
However, the White House has said that the progress a country has made towards negotiating a trade deal with the US has been taken into account in setting the latest tariff rates.
Sayeda Akter
BBC News Bangla, Dhaka
Bangladesh has declared a "decisive diplomatic victory", after the US reduced the tariffs from 35% to 20%.
Vidiya Amrit Khan, the owner of a leading garment factory, said Bangladeshi products would remain competitive as its main competitors, such as India, Sri Lanka and Cambodia, had to pay higher levies.
The US is Bangladesh’s largest single export market, accounting for 17% of its total exports. Ready-made garment makes up nearly 90% of exports to the US.
The reduced tariffs offer some relief for the country, which is still beset with political tension one year after long-serving prime minister Sheikh Hasina was toppled.
Bangladesh has also placed an order for 25 Boeing aircraft and committed to purchase 700,000 tonnes of wheat in five years from the US. It has also pledged to increase imports of cotton and soybean.
Ione Wells
Reporting from Sao Paulo, Brazil
Brazil’s government has indicated to reporters that it will announce some contingency measures next week to help businesses cope with the 50% tariffs that Trump has imposed.
Some products like orange juice and some oil, already subject to sectoral tariffs, are exempt. But some of Brazil’s biggest exports like beef and coffee will still be hit. Brazil is the biggest exporter of coffee, and the US gets about a third of its coffee from here.
Brazil’s finance minister Fernando Haddad told journalists that the government is finalising figures, including the amounts needed to help affected companies, but that spending would comply with local fiscal rules.
This is yet another sign that Brazil is not giving in to the pressure Trump is trying to exert – which is political, not economic.
The US sells more to Brazil than it buys, but Trump has framed these tariffs as retaliation for the trial of his ally – the former right-wing Brazilian president Jair Bolsonaro. Bolsonaro faces charges of planning a coup after he lost the last election, which he denies.
These tariffs and other measures were designed to heap pressure on Brazil’s authorities, but it doesn’t seem to be working. Brazil’s president has insisted that the judiciary is independent, that Brazil won’t be intimidated, and urged negotiations.
There’s no sign of progress on that front right now. Instead, it looks like Brazil’s government plans to try support businesses itself in the meantime.
Natalie Sherman
New York business reporter
Trump and other White House officials have sometimes mused about replacing America’s income tax with tariffs, returning to the system that existed more than a century ago.
That’s a practical long shot. Though tariff collections have shot up this year, they will still fall far short of the money the government takes in with the income tax.
But it’s a useful reminder of what’s actually happening - Trump has introduced a new tax on American businesses and households, one that the Budget Lab at Yale estimates will cost the average American households about $2,400 this year.
In the short-run, they estimate that this new tax will hit lower-income families hardest, since purchases of food, clothing, electronics and other categories affected by tariffs tend to account for a bigger share of their spending.
Imogen Foulkes
Reporting from Geneva
Image source, Getty ImagesA phone call between Swiss President Karin Keller-Sutter and Trump did not yield a deal
For Switzerland, today’s 39% tariff rate is worse than the worst-case scenario – these are the fourth-highest levies globally.
Switzerland’s government was confident after a recent meeting with US Trade Secretary Scott Bessent. Swiss President Karin Keller-Sutter said she had been told that her country would likely reach a deal.
Those illusions are shattered. A phone call between Keller-Sutter and Trump hours before the deadline yielded nothing. Then came news that the tariffs would be higher than the 31% originally threatened.
Some politicians are arguing that Switzerland’s negotiating tactics were not up to scratch - but the reality may be more straightforward: Trump wants to make big deals, and Switzerland just isn’t that big.
To compensate for Switzerland’s $47.4bn (£35.7bn) trade deficit, the government reduced its own tariffs on US industrial goods to zero, and multiple companies promised multibillion dollar investments in US plants.
There is a small window of opportunity for Swiss policymakers until 7 August, when the tariffs are due to come into force. Swiss businesses are warning of thousands of job losses if the levy can’t be reduced.
It’s hard to see what the wiggle room is. With the investment promises, and zero tariffs, Switzerland had already offered everything it could.
You can read more about Switzerland's tariff shock in our news article.
Natalie Sherman
New York business reporter
Trump just took to social media to call the head of the US central bank, Jerome Powell, a “disaster” and urge him to lower interest rates.
That’s a position the president has held for months.
So what’s triggering this morning’s attack? The latest jobs report just showed hiring in the US weakened sharply in May, June and July - a slowdown that is being pinned on tariffs.
Trump’s criticism of the bank - right when his tariff policy shows signs of spooking markets again - offers up an alternative explanation: a central bank that has been keeping interest rates too high, hurting the economy.
It’s true the central banks cut rates when economies are struggling - and bets that the bank will lower borrowing costs at its next meeting in September increased this morning after the jobs report.
But worries that tariffs will drive up prices in the US means the case for cuts isn’t completely clear.
“We’re being pulled in two directions,” Powell explained at his most recent press conference.
Image source, ReutersCanadian dairy may face Trump's higher tariff rate
As we've been reporting, a 35% tariff rate imposed on Canada has now kicked in - but most goods from Canada will actually be exempt from the high rate.
This is thanks to an existing trade treaty called the United States-Mexico-Canada Agreement (USMCA), which was negotiated by the first Trump administration and came into effect in 2020.
Nearly 90% of Canadian goods imported into the US are exempted under the free trade deal.
These include fresh produce, energy exports and many industrial goods, according to Canada's largest bank, external, the Royal Bank of Canada.
But some imports like dairy products, wood and leather may still face tariffs, depending on how talks shape up.
Image source, ReutersThe US-Canada trade war has escalated sharply as US President Donald Trump has increased the tariff rate on his neighbouring country's imports from 25% to 35%.
Most goods will avoid the increased costs entering the US market because they are currently exempted under an existing North American trade treaty.
While it's too early to determine the full impact, experts say prices are already creeping up on everyday items for Canadians and will continue to rise.
Here are the key products that are being hit hard:
You can read more about the five products that are now pricier in Canada as a result of Trump's tariffs in our news story.
Stephen Miran, chairman of the Council of Economic Advisers under the Trump administration, says there is "zero evidence" that tariffs are increasing prices for American consumers.
In an appearance on CNN, he said prices go up and down relative to each other, but "there is very little ground to stand on to say this is all due to tariffs."
But there are already signs that the levies may be pushing up prices, and economists argue that there is still some way to go before American shoppers feel the full force of the rises.
Read more of our reporting on this here: Six things that may cost Americans more after Trump's tariffs
Natalie Sherman
New York business reporter
Canada is facing the most immediate hit from Trump's tariff moves this week, as Trump raises tariff rates to 35% - and that's being reflected in the stock market.
The country's leading stock exchange slid about 1% in opening trade, extending slides in recent days as hopes for a deal with the US dimmed.
But as with shares in other countries, that fall comes after a steady climb in recent weeks. Despite turmoil when Trump first unveiled his tariffs in April, the index is up about 8% this year.
Natalie Sherman
New York business reporter
It’s always hard to pin market moves on any one factor. That’s especially true when dozens of companies are updating investors on their quarterly performance - a busy time for trading known as “earnings season”.
But if markets had seemed to take Trump’s tariff policies in stride after the initial shock, we may be seeing signs that they were simply waiting to see how things would shake out.
That picture is now clear: the average tariff rate in the US is at the highest level since the 1930s, an unprecedented jump.
The weakness in the job market, as shown in today’s monthly report from the US Department of Labor, has underscored the risks of Trump’s policies. Economists have warned for months his decisions are likely to weigh on the economy, as they raise costs for businesses and consumers, while hiring, sales and investment slows.
Natalie Sherman
New York business reporter
The stock market just opened for trading in New York.
All three major indexes in the US – the Dow Jones Industrial Average, the S&P 500 and the Nasdaq, are lower, with the Dow and S&P down about 1% and the Nasdaq dropping 1.5%.
The declines follow falls on markets in Asia and Europe, after Trump said he was moving forward with plans to raise tariffs on goods from countries around the world.
Investors are also likely reacting to new data showing jobs growth in the US in May, June and July slowed more than sharply than previously understood - a worrying sign for the economy.
But the hit so far is relatively mild compared to the turmoil seen when Trump first unveiled reciprocal tariffs in April. And let’s remember: it was only a few days ago that markets in the US were hitting record highs.
Jonathan Josephs
BBC business reporter
Most economists will tell you that it is American consumers that will foot the bill for these levies, and not the countries they’re aimed at.
Meanwhile, President Trump has talked about America getting rich from the money tariffs bring in.
However the reality is a little more complex. Yes, the US Treasury brought in a record $28bn from tariffs in June - but the country also has $36.8tn of debt.
There is growing concern in the US about debt being at a record high, and Donald Trump’s tax cuts and spending plans are set to push it higher.
Three days after his inauguration in January, he said tariffs “will direct hundreds of billions of dollars and even trillions of dollars into our treasury to strengthen our economy and pay down debt.”
Even if that money is coming from US consumers, it can be argued that they are simply paying the bill for money their own government has already spent.
Image source, Jim Watson/AFPUS Trade Representative Jamieson Greer says tariffs are "a great deal for the country".
Speaking to Fox News, he says there are other deals available if the president wants them: "His view is maybe a tariff is better than a deal."
The government is focused on "making sure we can protect American manufacturing and be able to reduce our trade deficit", he adds.
Trump is using tariffs "as a tool of trade policy and economic policy like its meant to be used," Greer says, and that Trump is "hitting the sweet spot" in deal with each country.
Image source, ReutersStock markets in New York open at 09:30 EDT (14:30 BST), and eyes will be on the reaction of traders to Donald Trump's tariffs - which come into effect next week.
Earlier on today, stock markets in Europe dropped, with Germany's DAX down 1.5%.
In the UK, the FTSE 100 index has also dipped by 0.51% - though our deputy economics editor writes that this isn't really a surprise.
Asian markets, too, were trading lower this morning after Trump's tariffs announcements.
Japan's Nikkei 225 is down by 0.66% today, while the ASX 200 in Australia is 0.92% lower.
According to our deputy economics editor, these small dips were expected, after Trump's early threats in April were revised to less aggressive figures for many countries this morning.
We'll bring you the latest figures on how the US markets have reacted as soon as we get them.
Natalie Sherman
New York business reporter
Economic analysts have been looking closely for signs of damage to the job market in the US, as firms halted hiring and investment in the face of uncertainty stemming from tariffs.
We may be starting to see it.
Job creation in the US slowed sharply last month, as employers added just 73,000 roles, according to the latest monthly report from the Labor Department, published just a few minutes ago.
It also said job growth in May and June was far less than previously estimated.
For now the unemployment rate remains low, though it ticked up to 4.2% in July, from 4.1% the month before.