How businesses around the world react

Business leaders around the world have awakened the reality of a steep duty to export to the U.S. market after President Donald Trump’s new orders to tariffs Thursday night.

President Trump imposed new tariff rates on countries that failed to reach the latest trade agreement with the United States in accordance with executive orders. Earlier this week, he outlined a new framework for successful negotiations with the state for amending the terms.

Trump’s move has now reshape U.S. trade relations around the world in new tariffs in more than 90 countries.

Here is information some business leaders tell the BBC what this means to them.

The White House raised Canada’s tariffs from 25% to 35%, but its other major North American trading partner, Mexico, received a 90-day probation, temporarily halting its new duties.

Jaime Chamberlain, president of Fruit and Vegetables Distribution in Nogales, Arizona, said his company imports millions of boxes of agricultural products from Mexico each year.

“In fact, we are very lucky that Mexican negotiators and American negotiators remain calm and keep their heads cool,” he told him. BBC Radio 4’s Today’s Show. “The two countries really don’t want to make this mistake.

“If it would take another 90 days to get it right, I think it’s very worth it.”

But, without a deal, what might happen once a 90-day extension is coming.

“I think in the most extreme cases, many farmers will just stop farming in the export market,” Chamberlain said. “It’s hard for record importers like me to continue to pay these responsibilities for a long time.”

Thailand initially stared at the possibility of a 36% tax, which the agreement lowered tariffs to 19%.

Richard Han, CEO of Hana Microelectronics, one of the country’s largest contract manufacturers, recalled his shock when Trump initially announced in April.

“I remember waking up in the morning. It was still early and I saw him standing on the White House lawn with his board. I thought, ‘Isn’t it right? 36%? How is that possible?'”

But he believes his business is to produce high-tech products such as printed circuit boards, integrated circuits, and priced RFID tags that can survive under the new subordinate tax protocol.

“If all of us in the area end up reaching about 20%, our buyers will not seek alternative suppliers – that would be taxes, such as VAT [value-added tax]for American consumers,” Han said.

European leaders have reached a deal that tariffs on most commodities were 15% after Trump initially threatened that rate twice.

But this is still a substantial increase of 4.8% on the previous average.

According to the Italian Institute of International Politics, the agriculture, pharmaceutical and automotive sectors are likely to be hit the hardest, with the country’s gross domestic product (GDP) expected to fall by 0.2%.

Cristiano Fini of the Italian Farmers Federation said the deal with the United States was more like a “surrender” than a deal.

Now several Italian trade associations have voiced the European Union’s compensation to offset the expected losses.

If the EU agreement manages to cover up the worst effects of tariffs, Brazil’s fate will reverse.

Trump initially announced a 10% interest rate, but on Wednesday he raised that number to 50%, accusing President Luiz Inacio Lula da Silva of unfairly attacking U.S. tech companies and calling for prosecution of former President Jair Bolsonaro for attempting a coup “witch hunt.”

However, higher tariffs come with some exemptions, such as orange juice and commercial aircraft.

But other products are expected to face sharp rises.

The Brazilian coffee exporters committee Cecafé said the impact on Brazilian roasters and exporters would be “important” and warned U.S. coffee drinkers to increase price increases.

Brazilian producers and exporters are developing contingency plans.

But Cecafé said it is not easy to find other markets for the 8.1 million tons of coffee currently exported to the United States. New markets are opening in Asia and the Middle East – but according to Cecafé, they will not be able to absorb all potential U.S. shortages.

Switzerland, once optimistic about a modest interest rate of 10%, suffered a 39% tariff – the highest tariff in Europe.

Just a few weeks ago, Swiss President Karin Keller-Sutter hinted that a deal was reached on a 10% interest rate.

Now, the hike is now shocking the country, as tariffs can seriously affect companies that produce medicines, jewelry and machine tools.

“As unilateral tariffs on Swiss industrial products increase, the U.S. government is sending a clear signal of protectionism,” the machine tool industry group Swiss Machinery said in a statement.

“The government must now act with clarity and confidence and determine the use of the existing window of opportunity to negotiate with the United States.”

India was slapped by 25% tariffs, with a footnote – Trump threatened to impose an unspecified fine on India’s commercial deal with Russia.

Currently, India is one of the biggest buyers of Russian oil, and Trump is using tariffs as pressure on Moscow’s war in Ukraine.

Aurobindo Nayak, who runs CI Ltd, a large tea exporter in Kolkata, said U.S. consumers will eventually pay the price.

He told BBC’s World Business Report: “We will definitely be the first to be hit. But I think the people who are really hit hard are American consumers themselves.

“Choose to tax in the United States will only produce an inflationary effect. Assam tea has many characteristics and it is favored by American consumers. Darjeeling tea is a specialty tea that is not grown anywhere else. Consumption in the United States is growing.”

One of the steepest tariff rates in Laos in Southeast Asia – 40%.

“We are not satisfied with the tariffs… Laos is a very small country,” said Xaybandith Rasphone, co-founder of sports marketing agency MKGT and vice-chairman of the Lao National Chamber of Commerce. “Laos only exports agricultural products, clothing, juices, etc. to the United States.”

Rasphone tells The BBC World Service Program NewsDAYes, there are 60 companies operating in these departments collectively saying that nearly 60,000 people may be affected.

“Indirect work can also be affected,” he said, noting that the overall impact on the country’s economy could be large.

As mentioned earlier, the tariffs are now at 35%, although most commodities will avoid increased costs as they are currently exempted under existing North American trade treaties.

David Hope is the vice president of finance for Canadian company Hope Aero, which specializes in maintaining aircraft components.

He said he “rolled his eyes” when he learned about Trump’s latest tariffs.

Even if most of their customers are not in the U.S., Mr. Hope explained how the comprehensive nature of the supply chain means that their costs are still rising.

Many of the parts the company uses come from the U.S., and he said he hopes suppliers will raise prices soon.

“I’ve whispered to one of my major suppliers that the pipe has increased 10% of the blanket from the pipe,” he said.

Aircraft parts are mainly made of steel and aluminum – two materials with a tariff of less than 50%.

“In the United States, steel and aluminum are becoming more and more expensive, so they will pass [those costs] It’s right there,” he said.

With Laura Gozzi’s coverage in Rome, head of Jonathan in Bangkok, Ione Wells in St. Paul, Imogen Foulkes in Geneva and Ali Abbas Ahmadi in Toronto