Connect with us

America

Trump imposes new global tariffs, raising average US import tax to 15.2%

Published

on

US President Donald Trump has announced a series of new tariffs, increasing the average tariffs applied to goods imported from around the world.

The base tariffs for many trading partners remained at 10%, the same level Trump imposed in April. This allayed the worst fears of investors after the president suggested the taxes could double.

However, the decision to raise tariffs on some Canadian goods to 35% threatens to add new tension to an already strained relationship, while countries like Switzerland and New Zealand also saw their rates increase.

According to Bloomberg, if the rates are implemented as announced, the average US tariff rate will rise to 15.2%. This is significantly higher than the previous 13.3% and the 2.3% rate in 2024 before Trump took office.

Most of the tariffs will take effect after midnight on August 7 to allow the Customs and Border Protection agency to make the necessary changes to collect the taxes.

Trump signed the directive just hours before his August 1 deadline to implement higher tariffs on numerous trading partners.

Major industrialized economies, including the European Union, Japan, and South Korea, accepted a 15% tariff on their products, while the taxes on goods from Mexico, Canada, and China are even higher.

The planned 15% tariff on European goods was postponed until August 7, providing a brief delay as negotiators work to finalize a US-EU agreement.

Brussels has called on Washington to begin implementing the new US-EU trade deal, asking the US, its largest trading partner, to provide “urgent tariff relief” to Europe’s struggling exporters starting from August 1.

Trump is expected to impose separate tariffs on imports of pharmaceuticals, semiconductors, critical minerals, and other key industrial products in the coming weeks, meaning uncertainty will continue for companies and investors.

Stocks came under pressure after Trump announced the new rates. The MSCI All Country World Index fell by 0.2%. S&P 500 contracts lost 0.2%, while European contracts fell by 0.6%. Asian stock markets declined for the sixth consecutive day with a 0.7% drop, marking the longest losing streak this year.

The Taiwanese dollar and the Korean won led the decline in foreign exchange markets, while the Swiss franc fell slightly after a 39% tax was imposed on products from the country. Switzerland was one of the few countries where rates were raised. The Canadian dollar remained stable despite the higher rates.

This announcement, at least for now, ends months of anticipation about how Trump would set the country-specific tariffs that are central to his plan to reduce the trade deficit and revive the American manufacturing sector.

Trump had twice postponed the so-called reciprocal tariffs, which he first announced in April, to allow time for negotiations after markets initially panicked and foreign governments bargained for better terms.

Thursday’s decision was signed behind closed doors. As a result, imports from approximately 40 countries will be subject to the new 15% tariff, while products from about a dozen economies will face higher tariffs due to either a negotiated agreement or Trump sending a letter unilaterally setting the import taxes. The second group consists of countries with the highest goods trade surpluses with the US.

Some of these were expected, such as the 25% tax on Indian exports that Trump announced on social media this week. Others include a 20% tax on Taiwanese products and a 30% tax on South African goods.

Thailand and Cambodia, which were said to have reached a last-minute deal, received a 19% tax, the same rate applied to neighboring countries like Indonesia and the Philippines. A 20% tariff will be applied to Vietnamese goods.

According to Bloomberg, there were signs that Trump’s decision surprised some partners. The Taiwanese cabinet stated that the imposed rate is temporary and that it expects the US-imposed tax to be lowered following talks that were postponed due to scheduling conflicts.

A senior US official said other details, including “rules of origin” to determine which products are being transshipped or rerouted through another country and thus subject to a tariff of at least 40%, have not yet been clarified. According to the official, the decision will be made in the coming weeks.

Former US trade negotiator Wendy Cutler said, “US customs officials will face challenges in implementing the presidential decree, especially with the different tariffs now being applied worldwide. The seven-day period before implementation will help, but importers should expect problems, at least initially.”

In a separate decision, Trump followed through on his threat to increase the tariffs on exports from Canada, one of the largest US trading partners, from 25%. This change excludes goods covered by the North American trade agreement he negotiated during his first term.

The lower 10% and 15% rates are expected to apply to mostly small and medium-sized economies with which Trump has shown little interest in one-on-one negotiations. Trump recently stated that there were too many countries to make individual deals.

However, some small countries were hit with the highest rates. These included Syria at 41%, and Laos and Myanmar at 40%. The small African nation of Lesotho, which was shaken by Trump’s threat in April to impose a 50% tariff, escaped with a 15% rate.

A 15% tariff was also imposed on all products from Türkiye going to the US.

The senior US official said no date has yet been set for when revised automobile tariffs will be implemented. Trump’s agreements with the EU, Japan, and South Korea will reduce the tariffs on their vehicle exports from the general rate of 25% to 15%.

A major exception to this week’s deadline is China, as its tariff ceasefire with the US is set to expire on August 12. The Trump administration has indicated that an extension of the ceasefire is likely. No final decision has been made yet, but an official said the recent US-China talks in Stockholm were positive.

America

Pentagon and Justice Department form joint task force to combat media leaks

Published

on

US Secretary of Defense Pete Hegseth announced on Monday that the Department of Defense and the Department of Justice have established a joint task force as part of efforts to prevent the unauthorized disclosure of sensitive information to the public.

Hegseth stated that the Office of the General Counsel (OGC) of the Department of Defense will have the authority to request and receive all information, support, and records across the Pentagon related to media leak investigations.

The Defense Secretary noted that all departments and personnel within the ministry will prioritize these requests. He added that a complete and comprehensive response to any instruction issued by the OGC under this authority must be provided within two days of the submission of the request.

“Leaked information risks lives. These new tools and processes will greatly assist us in protecting our collective strength. Our nation’s security cannot be a bargaining chip for those chasing instant headlines,” Hegseth said in an approximately two-and-a-half-minute video message published on the social media platform X.

Hegseth also stated, “Access to classified and confidential information is a sacred trust, and those who betray this trust will face the full force of the law.”

The announcement of the task force came a few days after the Department of Justice issued subpoenas to four New York Times reporters. The journalists, summoned to testify before a federal grand jury, had reported on security concerns regarding President Donald Trump’s flight to Türkiye for a NATO summit on an aircraft donated by Qatar.

The subpoenas drew sharp criticism from The New York Times and press freedom advocates. Opponents argue that the government is attempting to intimidate news organizations.

“Our journalists report the facts and defend the American public’s right to know how their government operates and how taxpayer dollars are spent,” New York Times attorney David McCraw said in a statement. “This brazen action is nothing less than an attempt to deter journalists from doing their jobs, thereby preventing the public from learning what is happening in the country.”

Hegseth has been taking steps to prevent leaks to the press since the beginning of his tenure at the Pentagon. Last year, the department launched investigations into personnel alleged to have leaked classified information to the media and threatened to administer polygraph tests.

Leak allegations were also directed at some of Hegseth’s advisers last year. Former senior adviser Dan Caldwell and former deputy chief of staff Darin Selnick are among those individuals. Caldwell, Selnick, and Colin Carroll, the former chief of staff to Deputy Secretary of Defense Stephen A. Feinberg, were first suspended and subsequently dismissed from their positions and removed from the Pentagon as part of the internal leak investigation.

A government official, speaking to The Hill in mid-March, stated there was no evidence that Caldwell, who began working at the Office of the Director of National Intelligence (ODNI) earlier this year, had leaked information from the Pentagon.

Defense Secretary Hegseth has previously been the target of criticism himself for allegedly sharing sensitive information. Last year, Hegseth discussed planned US strikes against the Houthis in Yemen in a Signal group chat to which an editor of The Atlantic magazine had been mistakenly added. A report published in December by the Pentagon’s Office of the Inspector General determined that Hegseth had compromised military security and violated department policy by using the Signal application on his personal mobile phone.

“It is highly ironic that Hegseth himself shared sensitive national defense information with his wife over Signal last year and faced no consequences, yet now speaks of the need to protect this information,” said former Pentagon spokesperson John Ullyot. “In 2012, CIA Director David Petraeus resigned from his post for a similar situation involving his girlfriend, and was sentenced in federal court to two years of probation and a $10,000 fine.”

Ullyot, who also served as the spokesperson for the National Security Council during Trump’s first term, told The Hill on Monday: “The President deserves better from his national security leaders. Hegseth should start holding himself accountable before holding others accountable.”

Reporters have been largely blocked from entering the Pentagon after Hegseth revoked access to most of the facility. Pentagon correspondents returned their press credentials in October, refusing to sign a new media policy that required a commitment not to solicit unauthorized materials.

Hegseth and his supporters argue that the policy will protect national security by preventing the leak of classified information. Press freedom groups and critics, conversely, characterize the practice as a violation of the constitutional rights of journalists.

Most recently, the department further restricted press access by declaring the Pentagon building a classified space and banning journalists from entering.

Offering historical references in his statement on Monday, Hegseth said, “Leaking sensitive national defense information and secrets is a betrayal of the men and women who wear the uniform of our country. This is a principle as old as the history of warfare, reaching back to the founding of our republic in the United States. George Washington himself combated leaks, insider threats, and espionage.”

Continue Reading

America

SpaceX shares fall 40% from peak to approach IPO floor as regulatory scrutiny weighs

Published

on

Shares of the American aerospace company SpaceX fell to as low as $136.78 at the trough of the trading session on Monday, July 13, representing a 5.87% decline compared to the close of trading on July 10. According to data from the US-based NASDAQ exchange, this retreat marks a depreciation of approximately 40% from the company’s historic peak of $225.64, which was recorded on June 16. With this latest decline, the company’s shares have approached their initial public offering (IPO) price threshold of $135.

As of 21:25 Moscow time on the trading day in question, the shares continued to trade at $137.4, down 5.4%.

The downward trend in the shares was driven by reports that the US Federal Aviation Administration (FAA) had concluded its investigation into the emergencies and malfunctions during the May 22 launch of Starship, the largest and most powerful rocket model developed by SpaceX.

According to CNBC, the agency reviewed and approved the findings and corrective measures submitted by the company following its internal investigation into the incident.

The Starship project, a massive, reusable rocket designed to carry crew and cargo to the Moon and Mars and to perform other space missions, is considered one of the most critical elements of Elon Musk’s space program.

In a statement issued by the FAA, it was noted that following the approved corrective actions, SpaceX is permitted to begin preparations for the Starship Flight 13 flight, provided that the company meets all safety requirements and licensing conditions.

The FAA had previously issued a statement regarding the malfunction during the launch attempt at the end of May. The statement noted: “The anomaly occurred during the Super Heavy booster’s flip maneuver over the Gulf of America.”

The region referred to as the Gulf of America by US authorities in official correspondence is commonly known as the Gulf of Mexico.

According to official data, the booster parts fell within the boundaries of pre-established hazard areas. Six flights were delayed and five aircraft remained in holding patterns for a period due to the incident, though no changes were made to flight routes.

SpaceX shares, which began trading on the NASDAQ exchange at the beginning of June, gained 25% at the opening. As part of the initial public offering, the company offered 555.6 million shares for sale at a fixed price of $135 per share.

The SpaceX IPO was recorded as the largest initial public offering in financial history. The company initially raised $75 billion, and the total funds raised reached $85.7 billion after consortium members exercised their over-allotment option to purchase an additional 83.3 million shares.

In a statement to his employees, company founder Elon Musk stated that going public was necessary to generate capital during a phase of rapid growth. It was announced that the proceeds would be used to complete the development process of the Starship rockets, bring them to commercial readiness, and expand the Starlink satellite network.

The post-IPO surge in SpaceX shares had briefly made Elon Musk the world’s first trillionaire. Bloomberg had estimated Musk’s wealth at $1.05 trillion, while Forbes valued it at $1.1 trillion.

However, with the decline in share prices and the company’s market value that began in late June, Musk lost his trillionaire title after holding it for 12 days.

According to an analysis by Bloomberg, the decline was driven by SpaceX’s preparations to issue at least $20 billion in bonds to finance artificial intelligence projects, alongside the signing of a multi-billion-dollar agreement with AI startup Reflection AI to provide computing resources.

Assessments by S&P Global projected that SpaceX will continue to incur expenditures without generating revenue until at least 2029.

Continue Reading

America

Trump notifies Congress of renewed war with Iran, resetting War Powers clock

Published

on

US President Donald Trump has formally notified lawmakers that the country is back at war with Iran, according to an official notification sent to Congress over the weekend.

In the letter dated July 10 and obtained by Politico, Trump stated that airstrikes beginning on July 7 constituted “military actions consistent with my responsibility to protect Americans and US interests both at home and abroad.”

The notification triggers a new 60-day statutory window under which the US administration can utilize military force in the region without prior congressional approval.

The conflict, which has repeatedly paused and restarted over control of the Strait of Hormuz—a crucial chokepoint for global energy supplies—has become a persistent challenge for the Trump administration.

Trump has expressed frustration over the failure to secure a peace agreement with Iran, while congressional Republicans remain concerned about being blamed for rising fuel prices ahead of the upcoming midterm elections.

On Monday, Trump intensified military pressure on Tehran, declaring that the US would reimpose a blockade on the region, seize control of the Strait of Hormuz, and levy fees on transiting vessels.

Ceasefire process officially ends

The notification to Congress follows Trump’s announcement that a two-month-old ceasefire with Iran has officially ended.

The ceasefire, originally declared in April, had been fragile from the outset due to reciprocal attacks by both nations. Despite the friction, the Trump administration had previously maintained that a full-scale war had not resumed.

Officials from US Central Command (CENTCOM) announced that US forces have struck more than 300 Iranian military targets over the past week in retaliation for Tehran’s hostile actions in the Strait of Hormuz.

On Monday, CENTCOM released a statement confirming that US forces had conducted additional airstrikes against Iran “at the direction of the Commander-in-Chief.”

“These strikes will continue to impose heavy costs on Iranian forces, degrading their capability to attack innocent civilians and commercial shipping in the Strait of Hormuz,” the statement read.

War powers debate

Trump had previously notified Congress that the war, which began in February, had “ended” in May, thereby resetting the 60-day statutory clock that would otherwise require the cessation of military operations without congressional authorization.

With the April ceasefire intended to run indefinitely, the White House argued that the timeline mandated by the War Powers Act had been paused.

However, anti-war lawmakers in Congress challenged this interpretation. They argued that the government was misapplying the law, noting that even when major combat operations subsided, the US Navy maintained its blockade to exert pressure on Tehran.

The new notification complicates ongoing efforts within Congress to limit military action against Iran. Last month, the Senate passed a symbolic resolution calling for an end to the hostilities, signaling waning support for Trump’s military campaign against Tehran.

The resolution, which passed 50 to 48 after four Republican senators voted with Democrats, sought to make congressional approval a requirement for continued military operations.

A similar measure had previously passed the House of Representatives by a vote of 215 to 208, also drawing the support of four Republicans.

The legislative impact of these measures remains limited, however, as joint resolutions are not sent to the president for signature, and any bill seeking to restrict executive war powers would face a certain White House veto.

In his letter to Congress, Trump emphasized that US military forces remain deployed to counter threats against allies.

“United States Armed Forces remain postured to take additional steps, as necessary and appropriate, to address further threats or attacks against the United States, its allies, or its partners, and to ensure that the Government of the Islamic Republic of Iran ceases to pose a threat to the United States and its partners,” Trump wrote.

Continue Reading

MOST READ

Turkey