Trump announces new tariffs on six countries including Iraq and the Philippines
The letters, which were sent on Wednesday, call for tariffs of 30 percent on Algeria and Iraq; 25 percent on Brunei, Libya and Moldova; 20 percent on the Philippines – the largest of the trading partners announced on Wednesday. The tariffs are expected to start on August 1.
Trump posted the letters on Truth Social after the expiration of a 90-day negotiating period that began with a baseline levy of 10 percent. Trump is giving countries more time to negotiate before his August 1 deadline, but he has insisted there will be no extensions for the countries that receive letters.
The Census Bureau reported that last year, the US ran a trade imbalance on goods of $1.4bn with Algeria, $5.9bn with Iraq, $900m with Libya, $4.9bn with the Philippines, $111m with Brunei and $85m with Moldova.
The imbalance represents the difference between what the US exported to those countries and what it imported. None of the countries listed are major industrial rivals to the United States.
Taken together, the trade imbalances with those six countries are essentially a rounding error in a US economy with a gross domestic product (GDP) of $30 trillion.
Wednesday's letters are the latest in a slate the Trump Administration sent to nations around the globe. On Monday, he threatened Japan and South Korea with 25 percent tariffs, stepping up pressure on the two historical US allies and a dozen other economies to reach trade deals with Washington.
Over the weekend, the Trump administration began sending letters to countries informing them that the US would begin to reimpose the tariffs it postponed in April. Trump's erratic approach to tariffs is triggering widespread economic effects on the US and countries around the world.
In the US, the most recent jobs report showed little to no growth in sectors including trade and construction, industries largely impacted by tariffs. The US GDP contracted 0.5 percent in the first quarter of the year, according to data released by the US Department of Commerce's report last month.
This comes amid a handful of looming trade negotiations across the globe that will impact the US economy and many of its key trade partners.
The Trump administration has only put forth two trade agreements thus far, which are with the United Kingdom and Vietnam.
US markets have stayed stable despite the new tariffs. As of 12:30pm Eastern Time (16:30 GMT), the Nasdaq is up 0.5 percent. The S&P 500 is about even with the market open, only up about 0.2 percent, and the Dow Jones Industrial Average is up by 0.1 percent.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Al Jazeera
an hour ago
- Al Jazeera
Trump hosts Qatar's PM for private dinner, meets Bahrain crown prince
President Donald Trump has hosted Qatar's prime minister for a private dinner and met with Bahrain's crown prince at the White House as part of a United States effort to address regional issues, including securing a Gaza ceasefire, and promote diplomatic ties with the Gulf region. Sheikh Mohammed bin Abdulrahman bin Jassim Al Thani, the Qatari prime minister and a member of the country's ruling family, had a private dinner with Trump on Wednesday evening. Before this meal, Trump met with Bahrain Crown Prince Salman bin Hamad Al Khalifa in the Oval Office. With little progress to share on the region's most pressing conflicts, including Israel's war on Gaza, Trump was more focused on Wednesday on promoting diplomatic ties as a vehicle for economic growth. Trump has lavished attention on the Gulf, a wealthy region where members of his family have extensive business relationships. In mid-May, he visited Saudi Arabia, Qatar and the United Arab Emirates on the first foreign policy trip of his second term. While in Qatar in mid-May, Trump complimented its palaces and stopped at the Al Udeid Air Base, the biggest US military base in the Middle East. The base was hit by Iran after the US bombed the country's nuclear facilities, hours before a ceasefire was declared in the US-Israel-Iran conflict. One ballistic missile made impact, while others were intercepted. The visit culminated in deals worth at least $1.2 trillion, including a major transaction for Qatar Airways to buy 210 aircraft from Boeing. Another deal included purchases of drone and anti-drone technology from US defence companies like Raytheon, and investments in the US energy sector. Trump wants to use a luxurious Boeing 747 donated by Qatar as his Air Force One, saying he is tired of waiting for Boeing to finish new planes. However, the arrangement has stirred concerns about security and the ethics of accepting a gift from a foreign government. Aaron David Miller, who served as an adviser on Middle East issues to Democratic and Republican administrations, said 'the Gulf represents everything that Trump believes is right about the Middle East. 'It's rich, it's stable, it's populated by authoritarians with whom the president feels very comfortable,' said Miller. During his earlier meeting with Al Khalifa, Trump said: 'Anything they needed, we helped them. And anything we needed, they helped us.' Bahrain is a longtime ally that hosts the US Fifth Fleet, which operates in the Middle East. Like other Arab leaders, Al Khalifa is eager to highlight the lucrative potential of diplomatic ties with the US, including $17bn worth of investments. 'And this is real,' he said. 'It's real money. These aren't fake deals.' According to the White House, the agreements include purchasing US aircraft, jet engines and computer servers. More investments could be made in aluminium production and artificial intelligence. Bahrain's King Hamad bin Isa bin Salman Al Khalifa, the crown prince's father, is expected to visit Washington before the end of the year. An important part of the relationship will be an agreement, signed on Wednesday, to advance cooperation on civilian nuclear energy.
Al Jazeera
2 hours ago
- Al Jazeera
Trump administration pulls $4bn in funds for high-speed rail in California
United States President Donald Trump has pulled the plug on $4bn in funding for a long-delayed high-speed rail line in California, blasting the project as a 'boondoggle' and a 'train to nowhere'. Trump said in a social media post on Wednesday that he had 'freed' taxpayers from the 'disastrously overpriced' proposed railway linking Los Angeles and San Francisco, which has been plagued by delays and cost overruns. 'This boondoggle, led by the incompetent Governor of California, Gavin Newscum, has cost Taxpayers Hundreds of Billions of Dollars, and we have received NOTHING in return except Cost Overruns,' Trump wrote on Truth Social, using a nickname he commonly deploys to mock the state's Democratic governor, Gavin Newsom. 'The Railroad we were promised still does not exist, and never will.' US Transportation Secretary Sean Duffy accused Democrats of wasting taxpayers' money and said federal money was not a 'blank cheque'. 'It's time for this boondoggle to die,' Duffy said in a statement. Newsom slammed the Trump administration's move as illegal and said the state would put 'all options on the table' to oppose the funding cut. 'Trump wants to hand China the future and abandon the Central Valley. We won't let him,' Newsom said in a statement. The 1,249km (776-mile) rail line, which was approved by California voters in a 2008 plebiscite, was initially envisaged for completion in 2020 at a cost of $33bn. The project's estimated cost has since ballooned to $89bn to $128bn with services not expected to begin until 2033 at the earliest. The US currently does not have a high-speed rail service, but a 354km (220-mile) high-speed link between Los Angeles and Las Vegas is scheduled to begin operations in 2028.
Qatar Tribune
10 hours ago
- Qatar Tribune
Morgan Stanley's second quarter profit rises
Agencies Morgan Stanley's profit climbed as market volatility buoyed its trading desk, echoing second-quarter results among its Wall Street rivals. Equity markets swung sharply during the quarter after US President Donald Trump announced sweeping tariffs against major economies. The turbulence spurred trading as investors repositioned their portfolios and hedged risks, driving gains in Morgan Stanley's trading business. In trading, equities revenue surged 23 percent, while jumped 9 percent in fixed income, Morgan Stanley said on Wednesday. Institutional Securities, which houses the bank's Wall Street operations, posted revenue of $7.6 billion in the second quarter, compared with $7 billion, a year ago. 'Institutional Securities saw strength and balance across businesses and geographies. Wealth continues to deliver,' CEO Ted Pick said in a statement. The investment bank posted net income of $3.5 billion, or $2.13 per share, for the three months ended June 30. That compares with $3.1 billion, or $1.82 per share, a year earlier. Rival Goldman Sachs' profit jumped in the second quarter, as turbulent markets lifted equities trading revenue. JPMorgan Chase also beat Wall Street estimates for second-quarter profit on strong investment banking results a day earlier. Citigroup also reported a windfall from trading and investment banking. Dealmaking rebounded at the end of the quarter as some companies looked past tariff uncertainty and gained confidence to carry out IPOs, mergers and acquisitions. Industry executives held up that optimism this week, anticipating that deals and stock market listings will pick up in the second half of the year. Investment banking revenue declined 5 percent in the quarter. Advisory revenue slid to $508 million, compared with $592 million, a year ago. Morgan Stanley CEO Ted Pick has maintained a positive view for the year, telling investors in June that deal discussions were persistent and ramping up. It earned the fourth-highest investment banking fees among global banks in the first half of the year, according to Dealogic data. Among prominent deals in the quarter, Morgan Stanley advised Elon Musk's xAI on a $5 billion debt raise and a separate $5 billion strategic equity investment. It also advised TJC on the $5 billion sale of Silvus Technologies to Motorola. The concern about US tariff policies has also abated since Trump's initial 'Liberation Day' announcement on April 2 spurred market volatility.
