The Latest: US trade partners around the world react to Trump’s new tariffs
Jul 31, 2025, 10:00 PM
FILE - Cranes work on stacks of containers at the Bangkok Port in Bangkok, Thailand, Thursday, April 10, 2025. (AP Photo/Sakchai Lalit, File)
Credit: ASSOCIATED PRESS
(AP Photo/Sakchai Lalit, File)
U.S. trade partners reacted Friday to President Donald Trump’s executive order that would introduce new tariffs on many of them in seven days, as the global economy and alliances face another test from the president’s trade agenda.
Trump’s order issued Thursday night came after a flurry of tariff-related activity in recent days as the White House announced agreements with various nations and blocs before a deadline set by the president for Aug. 1.
Trump ordered a 35% tariff for goods from Canada, effective from Friday, citing a lack of cooperation on illicit drugs. He also said Thursday that he would extend trade negotiations with Mexico for 90 days.
Here’s the latest:
Thailand’s finance minister says the 19% tariff rate imposed by the U.S. “reflects the strong friendship and close partnership” between the two countries.
Thailand’s new rate of 19% was reduced from 36%, similar to other rates imposed on Southeast Asian nations, such as Vietnam, Cambodia and the Philippines.
Finance Minister Pichai Chunhavajira wrote in a social media post on Friday that it would “maintain Thailand’s competitiveness on the global stage” and opens the “door to economic growth,” but also acknowledged it would pose problems for some sectors of the economy and said that “comprehensive support measures have been prepared.”
Speaking to reporters at a news conference in Bangkok later Friday, Pichai said that the deal will still need more time to be hammered out in details.
Pakistan on Friday welcomed a new tariff arrangement with the United States that sets a 19% duty on Pakistani exports, calling it a positive step that could boost trade and economic growth.
The new rate is lower than the 29% tariff initially announced by U.S. President Donald Trump and below the 25% currently imposed on neighboring India.
The Finance Ministry said the agreement reflects a “balanced and forward-looking approach” by U.S. authorities and will help keep Pakistani goods competitive in the American market compared to other South and Southeast Asian countries.
The ministry said the revised tariff is expected to benefit key export sectors, particularly textiles, which remain the backbone of Pakistan’s export economy. The ministry said that Pakistan will continue to engage closely with Trump and the U.S. administration to promote the shared goals of economic development and mutual prosperity.
Norwegian Prime Minister Jonas Gahr Støre told newspaper VG that he believes the Scandinavian country should have “zero tariffs.”
Gahr Støre, following the White House’s announcement, said Norwegian officials are still in talks with Washington in the hopes of eliminating the duties altogether.
Norway got hit with an expected 15% tariff.
The land of luxury watches, pharmaceuticals and secretive financial services was reeling Friday, Switzerland’s National Day, upon learning it had been slapped with a 39% tariff, although U.S. President Donald Trump had proposed a 31% rate in April.
The Swiss government said officials will continue to seek a negotiated solution.
“The Federal Council notes with great regret that, despite the progress made in bilateral talks and Switzerland’s very constructive stance from the outset, the US intends to impose unilateral additional tariffs on imports from Switzerland,” the government said in a post on X.
U.S. President Donald Trump has raised the tariff rate on U.S. imports from Canada to 35% from 25%, effective Friday, citing a lack of cooperation on illicit drugs.
The announcement from the White House late Thursday said that Canada had failed “to do more to arrest, seize, detain, or otherwise intercept drug trafficking organizations, other drug or human traffickers, criminals at large, and illicit drugs.”
Trump earlier had threatened to impose the higher tariff on Canada if no deal was reached by Friday, his deadline for reaching trade agreements with dozens of countries.
Canada wasn’t included in Trump’s updated list of tariff rates on other countries announced late Thursday. Those import duties are due to take effect on Aug. 7.
Malaysia’s Trade Ministry said Friday that the U.S. tariff reduction from 25% to 19% was a “significant achievement” as the deal was struck without compromising key national interests.
“The 19% rate roughly tracks the rate of other countries in the Southeast Asian region,” the ministry said in a statement. “Most importantly, Malaysia had stood firm on various ‘red line’ items, and the 19% tariff rate was achieved without compromising the nation’s sovereign right to implement key policies to support the nation’s socio-economic stability and growth.”
The ministry said that Malaysia’s economy remains resilient despite global headwinds, citing strong domestic demand and ongoing structural reforms.
The statement didn’t give further details, but officials previously said that nontariff barriers such as halal certification, which affects U.S. beef and poultry exports, along with digital trade and government procurement were sticking points. It’s unclear what concessions Malaysia made.
Cambodia’s deputy prime minister, who led trade talks with the U.S., thanked U.S. President Donald Trump for setting the tariff rate on Cambodian goods at 19% and said the government would impose zero tariffs on all American goods.
When Washington originally posted its list of notional “reciprocal” tariffs, the rate for goods from Cambodia was 49%, one of the highest in the world. It had estimated that Cambodian tariffs on U.S. imports averaged 97%.
Deputy Prime Minister Sun Chanthol also said Cambodia would purchase 10 passenger aircraft from Boeing in a deal they hoped to sign later this month. Several other nations had already announced similar aircraft purchase deals as part of their trade packages.
Trump had threatened to not conclude a deal with reduced tariffs if Cambodia and Thailand didn’t stop a recent armed conflict over border territory. The two nations agreed on a ceasefire beginning Tuesday that appears to be holding.
Cambodia publicly celebrated Trump’s peace initiative, suggesting he deserved a Nobel Prize for his intervention. Sun Chanthol said Friday that Cambodia would nominate him for the honor.
Australian Trade Minister Don Farrell says gaining the minimum 10% U.S. tariff on exports including beef, lamb, wine and wheat gave Australia a competitive advantage over some competitors.
Farrell told reporters Australia did not introduce tariffs on U.S. goods at any point, and added, “I haven’t seen any case or any example where the retaliatory imposition of tariffs has resulted in a country being in a better position.”
Farrell argues that no U.S. tariffs can be justified because Australia imposes no tariffs on its bilateral free trade partner. The United States has enjoyed a trade surplus with Australia for decades.
Australian Prime Minister Anthony Albanese has been criticized for failing to secure a face-to-face meeting with U.S. President Donald Trump to discuss trade.
Japanese Chief Cabinet Secretary Yoshimasa Hayashi welcomed U.S. President Donald Trump’s signing of the executive order setting Japan’s new reciprocal tariffs as a step that would reduce uncertainty of the U.S. trade policy and its negative impact on the global economy, including that of Japan.
Hayashi, however, said Japan still needs to closely examine the measures and continue urging prompt implementation by the U.S. government to carry out the agreement, including reduction of tariffs on automobiles and auto parts.
Hayashi acknowledged that Japan’s new tariff rate of 15% is a “major reduction” from the initially imposed 25%, but his government will continue to watch and mitigate its impact on Japanese exports, including by providing financial assistance for small and medium-sized businesses.
New Zealand officials said they would lobby the administration for a change to the 15% tariff announced for the country’s exporters to the U.S. It’s an increase from the original 10% baseline announced for New Zealand in April.
“We don’t think this is a good thing. We don’t think it’s warranted,” Trade Minister Todd McClay told Radio New Zealand Friday. He said New Zealand appeared to have been targeted for a larger levy because the country sells more to the U.S. than it imports, but that the gap of about half a billion dollars each year was “not significant or meaningful.”
Neighboring Australia dodged an increase to remain at 10%, but it buys more from the U.S. than it exports, McClay added.
The United States in January overtook Australia to become New Zealand’s second-largest export partner, behind China. New Zealand exports are largely made up of meat, dairy, wine and agricultural machinery.
Taiwan President Lai Ching-te said Taiwan had yet to engage in final negotiations with the U.S. owing to scheduling difficulties and that he was hopeful the final tariff rate would be reduced even further after a final round of talks.
The Trump administration hit Taiwan with 32% tariffs, and lowered it to 20% on Thursday. Taiwan was notified on Thursday by the administration of the lower rate.
“Twenty percent from the beginning has not been our goal. We hope that in further negotiations we will get a more beneficial and more reasonable tax rate,” he told reporters in Taipei on Friday.
Lai also linked trade talks to security issues, as the U.S. is Taiwan’s largest ally even though it does not formally recognize the island. “We want to strengthen U.S. Taiwan cooperation in national security, tech, and multiple areas,” he said Friday.
The U.S. is Taiwan’s most important export market and strategic ally, Lai said in an earlier statement Friday morning.
Cambodian Prime Minister Hun Manet expressed his thanks to U.S. President Donald Trump for the dropping of tariffs from 36% to 19% and he called the reduction “good news” for Cambodia.
Posted on his social media platform, Hun Manet said Trump hadn’t only helped broker a ceasefire between Cambodia and Thailand forces after nearly a weeklong clash, but also assisted Cambodia’s economy by lowering tariffs.
“This is good news for the people and economy of Cambodia to continue developing the country,” Hun Manet said.
Thailand’s government spokesperson Jirayu Houngsub said Thailand says the U.S. agreed to reduce the tariffs rate from 36% to 19%, a rate similar to those imposed on many other Southeast Asian countries such as Vietnam and the Philippines.
“It’s one of the major successes of Team Thailand in a win-win approach, to secure the country’s export base and economic security in a long run,” he said in a statement. He didn’t immediately say what was the latest offer Thailand made to the U.S.
The agreement came days after a ceasefire between Thailand and Cambodia to halt the nearly weeklong clashes that killed at least 41 people. It was brokered with U.S. pressure as President Donald Trump said he wouldn’t move forward with trade agreements if the conflict continued.
