Higher tariffs begin as countries fail to reach deals with US

Some of the world's poorest countries such as Lesotho and Bangladesh and some of the largest economies, including Canada and India, face punitive higher tariffs from today, having failed to reach trade agreements with Donald Trump.

- Lisa O'Carroll Brussels Dominic Rushe New York

Before a 1 August deadline, formal agreements have only been reached with seven of the 60 trading partners Trump singled out for retribution four months ago for what he described as years of looting and pillaging of the US.

Trump first unleashed his "reciprocal" tariffs on 2 April, a day he called "liberation day", with country-specific import taxes ranging from 10% to as high as 50% for some.

Markets dived and a week later he announced a 90-day pause for negotiations, reducing the rate to a global 10% baseline in the meantime. He extended the deadline for another four weeks earlier this month.

The US and Mexico agreed to extend their trade talks for a further 90 days yesterday, continuing a 25% fentanyl-related tariff and averting a 30% rate.

Deals have been struck with the UK, Vietnam, Indonesia, Philippines, Japan, the EU and South Korea with four more close to the finish line.

From today, the rest are expected to revert to their "reciprocal" rate or to a level announced by Trump in the interim, often in public letters.

Even many of those with agreements still face an increase in costs for doing business with the US. Europe, South Korea and Japan are all now subject to levies of at least 15%.