Global markets reel from White House's latest tariffs order
Mr Trump announced late Thursday that dozens of economies, including the European Union, will face new tariff rates of between 10 and 41%.
However, implementation will be on 7 August rather than Friday as previously announced, the White House said.
This gives governments a window to strike deals with Washington setting more favourable conditions.
Neighbouring Canada, one of the biggest US trade partners, was hit with 35% levies, up from 25%, effective Friday.
But with wide-ranging, current exemptions remain in place.
The tariffs are a demonstration of the economic power that Mr Trump believes will put US exporters in a stronger position, while encouraging domestic manufacturing by keeping out foreign imports.
But the approach has raised fears of inflation and other economic fallout in the world's biggest economy.
Stock markets in Hong Kong, London and New York slumped as they digested the turmoil, while weak US employment data added to worries.
Mr Trump ordered the Commissioner of the Labor Department's Bureau of Labor Statistics Erika McEntarfer to be fired after the data showed weaker than expected employment growth in July.
Mr Trump's actions come as debate rages over how best to steer the US economy, with the Federal Reserve this week deciding to keep interest rates unchanged, despite massive political pressure from the White House to cut.
Data yesterday showed US job growth will miss expectations for July, while unemployment ticked up to 4.2% from 4.1%.
On Wall Street, the S&P 500 dropped 1.6%, while the Nasdaq tumbled 2.2%.
Mr Trump raised duties on around 70 economies from a current 10% level imposed in April when he unleashed "reciprocal" tariffs citing unfair trade practices.
The new, steeper levels listed in an executive order vary by trading partner.
Any goods "transshipped" through other jurisdictions to avoid US duties would be hit with an additional 40% tariff, the order said.
But the president's duties have a distinctly political slant, with the president using separate tariffs to pressure Brazil to drop the trial of his far-right ally, former president Jair Bolsonaro.
He also warned of trade consequences for Canada, which faces a different set of duties, after Prime Minister Mark Carney announced plans to recognise a Palestinian state at the UN General Assembly in September.
In targeting Canada, the White House cited its failure to "cooperate in curbing the ongoing flood of fentanyl and other illicit drugs" - although Canada is not a major source of illegal narcotics.
By contrast, Mr Trump gave more time to Mexico, delaying for 90 days a threat to increase its tariffs from 25% to 30%.
But exemptions remain for a wide range of Canadian and Mexican goods entering the United States under an existing North American trade pact.
Mr Carney said his government was "disappointed" with the latest rates hike but noted that with exclusions the US average tariff on Canadian goods remains one of the lowest among US trading partners.
With questions hanging over the effectiveness of bilateral trade deals struck, including with the EU and Japan, the outcome of Mr Trump's overall plan remains uncertain.
"No doubt about it - the executive order and related agreements concluded over the past few months tears up the trade rule book that has governed international trade since World War II," Wendy Cutler, a senior vice president of the Asia Society Policy Institute, said.
Mr Trump said yesterday that he would consider distributing a tariff "dividend" to Americans.
Notably excluded from the latest tariff announcement was China, which is in the midst of negotiations with the United States.
Washington and Beijing at one point brought tit-for-tat tariffs to triple-digit levels, but have agreed to temporarily lower these duties and are working to extend their truce.
Those who managed to strike deals with the US to avert steeper threatened levies included Vietnam, Japan, Indonesia, the Philippines, South Korea and the European Union.
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The Journal
12 minutes ago
- The Journal
Israeli tactics leave dangerous security vacuum in Gaza which Hamas continues to exploit
Hana Salah Palestinian journalist ISRAEL'S CONTINUING ASSAULTS on Gaza cause daily devastations for the people of Palestine. The starvation of children has become the most visible and derided of those consequences. But last month's killing of 18 Palestinian humanitarian workers, allegedly by Hamas affiliates, also points to a less discussed impact: the dangers of escalating internal lawlessness due to Israel's systematic dismantling of the usual governance mechanisms in Gaza. The Independent Commission for Human Rights says Israeli strikes have systematically dismantled these mechanisms – by targeting police stations, courthouses and prisons. That has left a dangerous security vacuum. Hamas, and other gangs, continue to exploit the gap. On 11 June, at least 18 people working for the US-Israel backed Gaza Humanitarian Foundation (GHF) were killed when the bus they were travelling in was ambushed by gunmen. The incident received little media or public attention in June. What exactly happened on 11 June? According to family interviews and statements, the attackers stopped the bus and accused the workers of collaborating with Israel before unleashing a brutal assault that initially left 11 people dead. About another 17 were injured. Bereaved families now say that at least seven of those 17 were later killed later inside Nasser Hospital, where they had initially been taken for treatment, bringing the death toll to 18. No group has officially claimed responsibility but families of the victims say the attackers were members of the armed Sahem unit, which is affiliated with Hamas. The GHF claimed in a public statement that Hamas gunmen were behind the killings and called for an independent investigation. Hamas, which governs Gaza but has seen its authority fray during the war, has not commented publicly on the incident. However, survivors of the attack say they were targeted because the Sahem unit believed they were members of the Israel-backed Abu Shabab gang. Why were they targeting GHF workers? The GHF, which has controversially, ineffectively and dangerously become the sole provider of food aid in parts of Gaza after Israeli authorities restricted UN agency operations, has faced scrutiny from multiple sides. Some local groups accuse it of serving US interests and consider its operations as 'death traps' because of a lack of proper security protocols. The Palestinian workers were erroneously accused by the Hamas unit of being Abu Shabab gang members because of GHF's links to Israel. 'They were beaten, shot, humiliated' 'What happened was not a mistake. It was a crime,' says local journalist Alaa Al-Helou about the bus ambush. 'They were beaten, shot, humiliated — and then denied medical help in the hospital. And all because of a false accusation.' According to the families' statement, armed men stopped the GHF vehicle before beating the driver and passengers with sticks and rifle butts. They then shot some of them in the legs. Survivors say they were stripped of their belongings and dragged onto the street, where bystanders, incited by the attackers, joined in the assault. 'They forced us off the bus and made us lie on the ground. Then they began beating and shooting us, one by one,' said Younis Abu Shaloof, 18, and a survivor of the attack. 'When the armed men left, people thought we were part of Abu Shabab gang and collaborating with Israel and started hitting us too. The ambulance took us to hospital in Khan Younis.' Yousef was lucky as his family moved him from Nasser hospital in Kahn Younis to another field hospital in Deir Al-Balah, so he survived the second attack by the armed men in the hospital which killed at least seven others injured in the same incident. 'They hit me in the knee, and I passed out,'he recalls. 'When I came to, I saw another man next to me, bleeding from a gunshot wound to the head. 'I smeared some of his blood on my own head and rubbed sand over my face, hoping the gunmen would think I was already dead — so they wouldn't shoot me again and finish me off.' Contracting complications One source, who spoke to The Journal on condition of anonymity, said that the GHF had contracted a bus company for transportation and subcontracted Al-Khuzundar Company to supply the labourers. On 26 May 2025, the Al-Khozendar family — to which the head of the subcontractor company working with the GHF belongs — issued a public statement disowning Mohammad Mohsen Al-Khozendar for his alleged collaboration with a US firm involved in Israeli military projects. The statement, rooted in tribal and social norms in Gaza, condemned any logistical or engineering work that supports such initiatives as a betrayal of the Palestinian cause, and stressed that the company bearing the family name does not represent the family or its values. The transportation company, the source added, claimed it had been communicating with Hamas-affiliated internal security forces to coordinate the workers' movement in the designated humanitarian area. They also had an oral coordination with the Israeli army. Advertisement 'The Israeli army contacted the Palestinian coordinator (sub-contractor) through phone to allow or stop the movement but that doesn't guarantee the bus, or any coordinated movement is protected from strikes, shots, bombing,' the source added. Who knew about the bus movement at that hour? A member of another bereaved family said the bus had been waiting for coordination approval when the attack occurred. 'The bus was waiting for clearance, and the armed men struck nearly an hour after coordination calls began,' the source said. This could suggest that some security sources were already aware of its coordination request.' Youssef recalls the armed men asking them if they were with the Abu Shabab gang which is backed by the Israeli army. 'They asked us if we were working with Abu Shabab, but we denied,' Youssef said. 'I'm too afraid to leave my home now,' said the survivor Youssef. 'I will never work for the American organisation again. Better to die by an Israeli airstrike than be killed as a 'traitor' by our own people.' In the fragmented landscape of Gaza's ongoing war, the Abu Shabab militia has emerged as a controversial player, reportedly collaborating with Israeli forces while launching attacks on Hamas-linked units such as the Sahem Unit. The group is believed to be operating out of Rafah's eastern border and was formed during the current conflict. Its leader, Yasser Abu Shabab, 34, is now at the centre of fierce accusations from the Joint Operations Room of Palestinian Resistance Factions, which has charged him with treason and leading an illegal armed group. A Revolutionary Court has issued a 10-day deadline for his surrender, warning he will otherwise be tried in absentia. Security body seize bus Formally, no group has claimed responsibility. Hamas has not commented. The day after the incident, Abu Shabab denied the images of the killings showed members of its militia, according to EuroNews . But a month on from the attack, the Hamas Interior Ministry issued a statement banning all forms of collaboration or work with the GHF. The bus involved in the attack was seized by a security body in Gaza, according to sources. Witnesses said no one was allowed to approach the vehicle, and individuals who attempted to do so were reportedly beaten. There have been other killings of suspected Israel collaborators during the lawless chaos of the conflict. However, other innocent civilians have also been mistakenly targeted. On 26 September 2024, Islam Hejazi, Gaza Programme Director at the US-based charity Shifa' Palestine, was shot dead by armed men in Khan Younis, southern Gaza. Gunmen in three vehicles opened fire on the car she was travelling in, firing around 90 bullets. Her family said government officials later told them it was a case of mistaken identity — her vehicle had been wrongly suspected of resembling one linked to a wanted man accused of collaboration. Hejazi, a mother of two, was described by Shifa' Palestine as a dedicated humanitarian 'of the highest integrity and professionalism'. The charity said it remained committed to serving Gaza in her memory. Dismantling of public order In a strongly worded statement, the Independent Commission for Human Rights condemned the Khan Younis attack as an extrajudicial killing and a serious breach of international law. It warned of a disturbing rise in armed groups acting outside any official framework, and called for an urgent, independent investigation to restore public trust and uphold the rule of law. A lawyer associated with a human rights organisation in Gaza talked to The Journal on condition of anonymity due to potential risk to his safety, and said his organisation and others are working to document cases of extrajudicial killings and vigilante violence, but stressed the extreme difficulty of collecting accurate data during an ongoing war. 'It is nearly impossible to provide precise numbers at this stage,' he told The Journal. 'The war has made documentation extremely difficult — especially during the period when Gaza was effectively divided between the north and south.' He added that many killings have not been officially investigated by the Public Prosecution or the Ministry of Health, leaving their motives unclear. 'It is often unknown whether these were revenge attacks, personal disputes, or related to allegations of collaboration with the occupation,' he said. 'There are certainly killings, but in many cases, the reasons remain undetermined — particularly under the current conditions of war.' Looting During the 11 June, the Hamas unit targeted workers which the group erroneously identified as Israel collaborators. Meanwhile, the United Nations last week said that 766 aid-seeking Palestinians have been killed in the vicinity of GHF sites – mostly by the IDF. UN human rights office spokesman Thameen Al-Kheetan told the AFP news agency that these almost 800 victims were killed by Israeli military actions. That death toll has since increased. The collapse of civil order in Gaza has also been highlighted by the UN Protection Cluster, which warned that humanitarian efforts are being severely disrupted. In a recent update, the group said aid delivery is hindered not only by Israeli restrictions and access barriers, but also by growing lawlessness within Gaza, fuelled in part by Israeli strikes on civilian police infrastructure. It noted that the breakdown in law enforcement has led to increased looting and attacks on humanitarian convoys. The closure of the Rafah crossing since May 2024 — aside from limited evacuations of medical cases — has further compounded the crisis. Israeli military operations and an ongoing siege, particularly in northern Gaza since October, have deepened insecurity and worsened conditions for civilians and aid workers alike. Readers like you are keeping these stories free for everyone... A mix of advertising and supporting contributions helps keep paywalls away from valuable information like this article. Over 5,000 readers like you have already stepped up and support us with a monthly payment or a once-off donation. Learn More Support The Journal
Irish Times
3 hours ago
- Irish Times
US agency investigates former special counsel Jack Smith over handling of Donald Trump cases
An agency that scrutinises the conduct of US federal employees has opened an investigation into Jack Smith, the former special counsel who investigated Donald Trump before he returned to office, following a request by a Republican senator. The Office of Special Counsel confirmed on Saturday that it had opened an investigation into Mr Smith for a possible violation of the Hatch Act, a law that prohibits federal workers from using their government jobs to engage in political activity. Senator Tom Cotton had asked the agency to investigate on the premise that some of Mr Smith's actions, such as seeking quick trial dates in the two criminal cases against Trump, were designed to influence the 2024 election. The investigation, which was first reported by The New York Post, is unusual in several respects. First, the most severe penalty possible for a Hatch Act violation is dismissal from federal employment, and Smith left the government at the start of the year. Second, the type of prosecutorial decisions criticised by Mr Cotton, Mr Trump and others are far different from the type of cases the office typically handles. It traditionally investigates and addresses violations of federal rules about the civil service. [ Donald Trump indicted over attempt to overturn 2020 election Opens in new window ] [ 'We have one set of laws in this country': Special Counsel in Trump documents case Opens in new window ] The investigation comes at a time when lawyers representing fired or demoted federal employees have complained that under Mr Trump, the office is not fulfilling its traditional role. In February, the US president dismissed the agency's head, Hampton Dellinger, despite a federal law saying that person can only be fired for 'inefficiency, neglect of duty or malfeasance in office'. At the time, Mr Dellinger had been arguing for the reinstatement of thousands of probationary workers who had been fired by the new administration. This article originally appeared in The New York Times 2025 The New York Times Company
Irish Independent
3 hours ago
- Irish Independent
Trump fires official overseeing jobs data after dismal employment report
Trump, in a post on his social media platform, alleged that the figures were manipulated for political reasons and said that Erika McEntarfer, the director of the Bureau of Labor Statistics, who was appointed by former President Joe Biden, should be fired. He provided no evidence for the charge. 'I have directed my Team to fire this Biden Political Appointee, IMMEDIATELY,' Trump said on Truth Social. 'She will be replaced with someone much more competent and qualified.' Trump later posted: 'In my opinion, today's Jobs Numbers were RIGGED in order to make the Republicans, and ME, look bad.' The charge that the data was faked is an explosive one that threatens to undercut the political legitimacy of the U.S. government's economic data, which has long been seen as the 'gold standard' of economic measurement globally. Economists and Wall Street investors have for decades generally accepted the data as free from political bias. Trump's move to fire McEntarfer represented another extraordinary assertion of presidential power. He has wielded the authority of the White House to try to control the world's international trade system, media companies, America's top universities and Congress' constitutional power of the purse, among other institutions. McEntarfer's firing was roundly condemned by a group that included two former BLS commissioners, including William Beach, who was appointed by Trump to the position. They particularly objected to the charge that the data was altered for political reasons. 'This rationale for firing Dr. McEntarfer is without merit and undermines the credibility of federal economic statistics that are a cornerstone of intelligent economic decision-making by businesses, families, and policymakers,' the statement from the group, the Friends of BLS, said. In addition to Beach, the statement was signed by Erica Groshen, BLS commissioner under former President Barack Obama. 'Firing the Commissioner ... when the BLS revises jobs numbers down (as it routinely does) threatens to destroy trust in core American institutions, and all government statistics,' Arin Dube, an economist at the University of Massachusetts-Amherst, said on X. 'I can't stress how damaging this is.' After Trump's initial post, Labor Secretary Lori Chavez-DeRemer said on X that McEntarfer was no longer leading the bureau and that William Wiatrowski, the deputy commissioner, would serve as the acting director. ADVERTISEMENT Learn more 'I support the President's decision to replace Biden's Commissioner and ensure the American People can trust the important and influential data coming from BLS,' Chavez-DeRemer said. Friday's jobs report showed that just 73,000 jobs were added last month and that 258,000 fewer jobs were created in May and June than previously estimated. The report suggested that the economy has sharply weakened during Trump's tenure, a pattern consistent with a slowdown in economic growth during the first half of the year and an increase in inflation during June that appeared to reflect the price pressures created by the president's tariffs. 'What does a bad leader do when they get bad news? Shoot the messenger,' Democratic Senate Leader Chuck Schumer of New York said in a Friday speech. McEntarfer was nominated by Biden in 2023 and became the Commissioner of the Bureau of Labor Statistics in January 2024. Commissioners typically serve four-year terms but since they are political appointees can be fired. The commissioner is the only political appointee of the agency, which has hundreds of career civil servants. The Senate confirmed McEntarfer to her post 86-8, with now Vice President JD Vance among the yea votes. Trump focused much of his ire on the revisions the agency made to previous hiring data. Job gains in May were revised down to just 19,000 from a previously revised 125,000, and for June they were cut to 14,000 from 147,000. In July, only 73,000 positions were added. The unemployment rate ticked up to a still-low 4.2% from 4.1%. 'No one can be that wrong? We need accurate Jobs Numbers,' Trump wrote. 'She will be replaced with someone much more competent and qualified. Important numbers like this must be fair and accurate, they can't be manipulated for political purposes.' Trump has not always been so suspicious of the monthly jobs report and responded enthusiastically after the initial May figures came out on June 6, when it was initially reported that the economy added 139,000 jobs. 'GREAT JOB NUMBERS, STOCK MARKET UP BIG!' Trump posted at the time. That estimate was later revised down to 125,000 jobs, prior to the most recent revision down to just 19,000. During the 2016 campaign, Trump was more critical: He often attacked the jobs figures as they showed the unemployment rate steadily declining while Obama was still president, only to immediately switch to praising the data once he was in office, as steady job gains continued. The monthly employment report is one of the most closely-watched pieces of government economic data and can cause sharp swings in financial markets. The disappointing figure sent U.S. market indexes about 1.5pc lower on Friday. The revisions to the May and June numbers were quite large and surprising to many economists. At the same time, every monthly jobs report includes revisions to the prior two months' figures. Those revisions occur as the government receives more responses from businesses to its survey, which helps provide a more complete picture of employment trends each month. In the past decade, companies have taken longer to respond, which may have contributed to larger monthly revisions. The proportion of companies responding to the surveys has also fallen steadily over the past 10 years, but the survey still gets responses from roughly 200,000 business locations, which can be independent companies or franchises of larger chains. The monthly jobs report has long been closely guarded within the BLS, with early copies held in safes under lock and key to prevent any leaks or early dissemination.
