US trade war: The state of play as Trump signs order imposing new tariffs – but there are more delays
Donald Trump’s trade war has been difficult to keep up with, to put it mildly.
For all the threats and bluster of the US election campaign last year to the on-off implementation of trade tariffs – and more threats – since he returned to the White House in January, the president‘s protectionist agenda has been haphazard.
Trading partners, export-focused firms, customs agents and even his own trade team have had a lot on their plates as deadlines were imposed – and then retracted – and the tariff numbers tinkered.
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While the UK was the first country to secure a truce of sorts, described as a “deal”, the vast majority of nations have failed to secure any agreement.
Deal or no deal, no country is on better trading terms with the United States than it was when Trump 2.0 began.
Here, we examine what nations and blocs are on the hook for, and the potential consequences, as Mr Trump’s suspended “reciprocal” tariffs prepare to take effect. That will now not happen until 7 August.
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What does the UK-US trade deal involve?
Why was 1 August such an important date?
To understand the present day, we must first wind the clock back to early April.
Then, Mr Trump proudly showed off a board in the White House Rose Garden containing a list of countries and the tariffs they would immediately face in retaliation for the rates they impose on US-made goods. He called it “liberation day”.
The tariff numbers were big and financial markets took fright.
Just days later, the president announced a 90-day pause in those rates for all countries except China, to allow for negotiations.
The initial deadline of 9 July was then extended again to 1 August. Late on 31 July, Mr Trump signed the executive order but said that the tariff rates would not kick in for seven additional days to allow for the orders to be fully communicated.
Since April, only eight countries or trading blocs have agreed “deals” to limit the reciprocal tariffs and – in some cases – sectoral tariffs already in place.
Who has agreed a deal over the past 120 days?
The UK, Japan, Indonesia, the European Union and South Korea are among the eight to be facing lower rates than had been threatened back in April.
China has not really done a deal but it is no longer facing punitive tariffs above 100%.
Its decision to retaliate against US levies prompted a truce level to be agreed between the pair, pending further talks.
There’s a backlash against the EU over its deal, with many national leaders accusing the European Commission of giving in too easily. A broad 15% rate is to apply, down from the threatened 30%, while the bloc has also committed to US investment and to pay for US-produced natural gas.
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Millions of EU jobs were in firing line
Where does the UK stand?
We’ve already mentioned that the UK was the first to avert the worst of what was threatened.
While a 10% baseline tariff covers the vast majority of the goods we send to the US, aerospace products are exempt.
Our steel sector has not been subjected to Trump’s 50% tariffs and has been facing down a 25% rate. The government announced on Thursday that it would not apply under the terms of a quota system.
UK car exports were on a 25% rate until the end of June when the deal agreed in May took that down to 10% under a similar quota arrangement that exempts the first 100,000 cars from a levy.
Who has not done a deal?
Canada is among the big names facing a 35% baseline tariff rate. That is up from 25% and covers all goods not subject to a US-Mexico-Canada trade agreement that involves rules of origin.
America is its biggest export market and it has long been in Trump’s sights.
Mexico, another country deeply ingrained in the US supply chain, is facing a 30% rate but has been given an extra 90 days to secure a deal.
Brazil is facing a 50% rate. For India, it’s 25%.
What are the consequences?
This is where it all gets a bit woolly – for good reasons.
The trade war is unprecedented in scale, given the global nature of modern business.
It takes time for official statistics to catch up, especially when tariff rates chop and change so much.
Any duties on exports to the United States are a threat to company sales and economic growth alike – in both the US and the rest of the world. Many carmakers, for example, have refused to offer guidance on their outlooks for revenue and profits.
Apple warned on Thursday night that US tariffs would add $1.1bn of costs in the three months to September alone.
Barriers to business are never good but the International Monetary Fund earlier this week raised its forecast for global economic growth this year from 2.8% to 3%.
Some of that increase can be explained by the deals involving major economies, including Japan, the EU and UK.
US growth figures have been skewed by the rush to beat import tariffs.
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The big risk ahead?
It’s a self-inflicted wound.
The elephant in the room is inflation. Countries imposing duties on their imports force the recipient of those goods to foot the additional bill. Do the buyers swallow it or pass it on?
The latest US data contained strong evidence that tariff charges were now making their way down the country’s supply chains, threatening to squeeze American consumers in the months ahead.
It’s why the US central bank has been refusing demands from Mr Trump to cut interest rates. You don’t slow the pace of price rises by making borrowing costs cheaper.
A prolonged period of higher inflation would not go down well with US businesses or voters. It’s why financial markets have followed a recent trend known as TACO, helping stock markets remain at record levels.
The belief is that Trump always chickens out. He may have to back down if inflation takes off.
Donald Trump has said he wants to meet North Korean leader Kim Jong Un again.
Speaking at the White House as he held talks with the new South Korean president Lee Jae Myung, Mr Trump told reporters: “I’d like to meet him this year… I look forward to meeting with Kim Jong Un in the appropriate future.”
“I’d like to have a meeting. I got along great with him,” President Trump said, adding they “became very friendly” during his first term in office.
“We think we can do something in that regard,” he said, adding that he would like to help the relationship between the two Koreas.
Trump and Kim at the demilitarized zone in June 2019. Pic: Reuters
Mr Trump and Mr Kim held three meetings between 2018 and 2019 during Mr Trump’s first term and exchanged a number of, what the president called, “beautiful” letters.
In June 2019, Mr Trump briefly stepped into North Korea from the demilitarized zone (DMZ) with South Korea.
The US president on Monday responded to a question about whether he would return to the DMZ by fondly recalling the last time he did so.
“Remember when I walked across the line and everyone went crazy?” especially the Secret Service, Mr Trump told reporters in the Oval Office.
But “I loved it”, Mr Trump said. He added he felt safe because he had a good relationship with Mr Kim.
Mr Trump met South Korea’s Lee Jae Myung at the Oval Office on Monday. Pic: Reuters
Mr Trump became the first sitting American president to set foot on North Korean soil six years ago.
However, little progress was made in curbing North Korea’s nuclear programme, and Mr Trump acknowledged in March this year that Pyongyang is a “nuclear power”.
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Since Mr Trump’s first-term meetings with Mr Kim ended, North Korea has shown no interest in returning to talks.
The White House said in June that Mr Trump would welcome communications with Mr Kim.
The attempts at rapprochement come after the election in South Korea of Mr Lee, who has pledged to reopen dialogue with North Korea.
As a gesture of engagement in June, Mr Lee suspended South Korean loudspeakers blasting music and messages into the North at the DMZ along their shared border.
Analysts say, however, that engaging North Korea will likely be more difficult for both Mr Lee and Mr Trump than it was in the president’s first term.
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Since then, North Korea has significantly expanded its nuclear weapons and ballistic missile programmes.
And it has developed close ties with Russia through direct support for Moscow’s war in Ukraine, with Pyongyang providing both troops and weaponry.
Mr Kim told Russian President Vladimir Putin that his country will always stand with Moscow, state media reported in June.
US rapper Lil Nas X has pleaded not guilty after being charged with assaulting a police officer while walking in downtown Los Angeles in his underwear.
The musician, real name Montero Lamar Hill, was taken to hospital and arrested after police responded to reports of a naked man shortly before 6am on Thursday.
The district attorney’s office said on Monday that Lil Nas X faces three counts of battery with injury on a police officer and one count of resisting an executive officer.
He was being held on a $75,000 (£55,457) bail, conditional on attending drug treatment. It is not immediately clear whether he had posted it and been released yet.
He is set to return to court on 15 September for his next pre-trial hearing.
Pic: AP
During the hearing on Monday, Hill’s lawyer Christy O’Connor told the judge he had led a “remarkable” life, adding: “Assuming the allegations here are true, this is an absolute aberration in this person’s life.
“Nothing like this has ever happened to him.”
A law enforcement source told Sky’s US partner network, NBC News, on Thursday that the Old Town Road and Industry Baby hitmaker punched an officer twice in the face during the encounter.
The source added officers were unsure whether he was on any substances or in mental distress.
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NBC News cited TMZ footage where Hill was seen walking down the middle of Ventura Boulevard at 4am on Thursday in a pair of white briefs and cowboy boots.
In the videos, Hill tells a driver to “come to the party” in one clip and in another tells the person: “Didn’t I tell you to put the phone down?”
“Uh oh, someone’s going to have to pay for that,” Hill says as he continues to walk away.
In some clips, Hill struts as if he’s on a catwalk, posing for onlookers, and at one point he places an orange traffic cone on his head.
A man who was wrongly deported from the US to El Salvador has been detained by Immigration and Customs Enforcement (ICE) again.
Kilmar Abrego Garcia, a 30-year-old originally from El Salvador, handed himself into the ICE field office in Baltimore, Maryland, for a check-in on Monday.
The visit was a mandatory condition of his release from federal custody earlier this weekend. However, in a court filing on Saturday, his lawyers said they expected Garcia would be detained again upon attending.
Garcia is charged in an indictment, filed in federal court in Tennessee, with conspiring to transport illegal immigrants into the US.
An emotional Kilmar Abrego Garcia appears outside the ICE Baltimore field office on 25 August 2025. Pic: Reuters
According to a court filing by his lawyers, immigration officials made an offer to Garcia to be deported to Costa Rica in exchange for pleading guilty to the charges.
Otherwise, they would seek to deport him to Uganda.
Pics: Reuters
Speaking at a news conference outside the ICE office on Monday morning, Garcia said via a translator: “This administration has hit us hard, but I want to tell you guys something: God is with us, and God will never leave us.
“God will bring justice to all the injustice we are suffering.”
Simon Sandoval-Moshenberg, one of Garcia’s lawyers, also said: “There was no need to take him into ICE detention… the only reason they took him into detention was to punish him.”
A judge later ruled Garcia could not be deported after he filed a challenge asking to be allowed due process to fight any removal attempt.
Judge Paula Xinis ruled the 30-year-old must remain detained in the US until she can hold an evidentiary hearing – set for Wednesday.
She added there appeared to be “several grounds” for her to have jurisdiction to exercise relief, including that Uganda has not agreed to offer Garcia protections, such as being able to walk freely, being given refugee status, and not being re-deported to El Salvador.
After initially being detained in Maryland – where he lived with his American wife and children – by ICE in March, Garcia was sent to El Salvador, where he was then imprisoned in the country’s maximum security Terrorism Confinement Center (CECOT).
This was despite an immigration judge’s 2019 order granting him protection from deportation after finding he was likely to be persecuted by local gangs if he was returned to his native country.
Garcia was first detained by ICE in March. Pic: CASA/AP
The Trump administration admitted deporting Garcia was an “administrative error”, but said at the time they could not bring him back as they do not have jurisdiction over El Salvador.
After eventually returning him to the US in June, the Trump administration detained Garcia on criminal charges that were filed in May.
The criminal indictment alleges Garcia worked with at least five co-conspirators to bring immigrants to the US illegally and transport them from the border to other destinations in the country.
Minutes after his release on Friday, officials notified Garcia they intended to deport him to Uganda.
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Homeland Security secretary Kristi Noem, US President Donald Trump, vice president JD Vance and other officials claim Garcia was a member of MS-13 – an international criminal gang formed by immigrants who had fled El Salvador‘s civil war to protect Salvadoran immigrants from rival gangs.
Garcia’s lawyers strongly deny the claims.
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