President Donald Trump holds charts as he speaks about the economy in the Oval Office of the White House, Thursday, Aug. 7, 2025, in Washington. (AP Photo/Mark Schiefelbein)

President Donald Trump’s latest round of new taxes on imports arrived Thursday — with dozens of countries now facing even higher tariffs on goods that their businesses send to the U.S.

It’s been nearly 100 years since the nation had an overall import tax rate as high as the one set Thursday. Starting just after midnight, products from more than 60 countries and the European Union faced tariff rates of 10% or higher. Goods from the European Union, Japan and South Korea now will be taxed at 15%, while imports from Taiwan, Vietnam and Bangladesh will be levied at 20%.

The Trump White House is confident that the onset of his broad tariffs will ramp up new investments and jump-start hiring in ways that can rebalance America as a manufacturing power.

But there are already warnings signs of self-inflicted wounds to the U.S. economy — as companies and consumers feel the impact of higher prices from current levies, and brace for more. Beyond the latest country-specific tariffs to go into effect, Trump on Wednesday announced plans for a steep 100% tariff on non-U.S. computer chips, stoking more confusion among businesses worldwide.

U.S. stocks drifted to a mixed finish Thursday, as Trump’s new tariffs on dozens of countries had only a muted effect on markets worldwide.

But critics worry that Trump’s tariffs are damaging the economy, particularly after last week’s worse-than-expected report on the job market. But hopes for coming cuts to interest rates by the Federal Reserve and a torrent of stronger-than-expected profit reports from big U.S. companies are helping to offset the concerns, at least for now.

The U.S. imports a relatively small number of computer chips because most foreign-made chips in a device — from an iPhone to a car — were already assembled into a product, or part of a product, before it landed in the country.

But a key question the industry is asking is “whether there will be a component tariff, where the chips in a device would require some sort of separate tariff calculation,” said Martin Chorzempa, a senior fellow at the Peterson Institute for International Economics.

Regardless, Wall Street investors interpreted Trump’s planned tariff as good news not just for U.S. companies like Intel and Nvidia, but also for the biggest Asian chipmakers like Samsung and Taiwan Semiconductor Manufacturing Company that have been working to build U.S. factories. But in contrast, it left greater uncertainty for smaller chipmakers in Europe and Asia that have little exposure to the artificial intelligence boom but still make semiconductors inserted into essential products like cars or washing machines.

LUXURY GOODS

Shares of Ralph Lauren fell more than 7% on Thursday as the maker of iconic polo shirts, sport coats and other luxury clothing said that tariffs and general uncertainty could affect consumer sentiment later this year.

“The big unknown sitting here today is the price sensitivity and how the consumer reacts to the broader pricing environment and how sensitive that consumer is,” Ralph Lauren’s CEO Patrice Louvet told analysts on Thursday. “That’s what we’re watching very closely as we head into the second half.”

The comments came after the clothing maker posted strong sales in its fiscal first quarter — and upgraded its sales outlook. In May, the New York-based company had said that it would raise prices this fall because of tariffs.

As Trump’s tariffs take effect, Americans will see an average tax of 18.6% for imported products, the highest rate since 1933, according to the Budget Lab at Yale, a non-partisan policy research center.

The Budget Lab estimated prices will increase 1.8% in the short term as a result of the trade war the U.S. waged this year. That’s the equivalent of a $2,400 loss of income per U.S. household, the group said.

The analysis, which is based on the effects of all U.S. tariffs and foreign retaliation implemented in 2025 and through Wednesday, including the 50% tariff rate on India. The analysis assumes the Federal Reserve doesn’t react to tariffs and so the real income adjustment comes primarily through prices rather than nominal incomes. If the Federal Reserve reacted, the adjustment could in part come in the form of lower nominal incomes, the group said.

The National Retail Federation, the largest retail trade group in the U.S., is continuing to point to uncertainty facing businesses across the country.

Jon Gold, vice president of supply chain and customs policy for The National Retail Federation, said that while increased U.S. tariffs take effect for dozens of countries, there are still some ongoing negotiations and discrepancies about the deals that have been reached, leading to “continued uncertainty” around the final rates. He also pointed to concerns about the impact of the different sectoral tariffs being considered and potential secondary tariffs over Russian oil.

“Retailers have been able to hold the line on pricing so far, but the new increased tariffs will significantly raise costs for U.S. retailers, manufacturers and consumers,” Gold said in an emailed statement to The Associated Press. “While we support better trade deals, we need to negotiate clear and binding agreements that all parties will adhere to.”

Cosmetics company e.l.f. Beauty, which makes a majority of its products in China, said on Wednesday said that it raised prices by one dollar on its entire product assortment as of Aug. 1 because of tariff costs. That marks the third price hike in its 21-year history.

E.l.f.’s CFO Mandy Fields told analysts that the company is not sure whether the $1 price increases will be enough to absorb the tariff costs and will monitor what will happen on Aug. 12, when further negotiations between the U.S. and China are planned.

TOASTS NOT TARIFFS

A coalition of 57 U.S. associations and state guilds that represent businesses that make, import, distribute and sell alcohol, called the “Toasts not Tariffs Coalition,” asked Trump for reciprocal, tariff-free trade for U.S. and European Union spirits and wines.

The group estimates that the 15% tariff on EU wine and spirits could result in more than 25,000 American job losses and nearly $2 billion in lost sales.

“Many U.S. and EU spirits are recognized as ‘distinctive products’ and can only be made in their designated countries–Bourbon and Tennessee Whiskey in the U.S., and Cognac in France,” the group wrote. “Similarly, wine is linked to its place of origin through American Viticultural Areas, appellations of origin or geographical indications. Consequently, production of these products cannot simply be relocated to circumvent tariffs.”

Roughly three-fifths of Swiss exports to the U.S. will face steep 39% tariffs that took effect on Thursday, according to Switzerland’s government — with exceptions granted for key industries like pharmaceuticals, gold and chemicals.

Authorities responded to the whopping customs duties by laying out some workplace protections to impacted employees in Switzerland and vowing to continue talks.

After returning from Washington in a failed last-ditch effort to get the administration to back off the high tariff levels, President Karin Keller-Sutter lamented an “extremely difficult situation” for the most affected sectors and their employees. In a briefing with reporters on Thursday, she said Switzerland wanted a “regulated relationship” with the U.S., which she called a crucial trading partner, “but not at any price.” She said that any final decision would rest with Trump.

Vice President Guy Parmelin added that the hardest-hit sectors would be watchmaking, machinery, medical equipment, as well as food and drinks like coffee, chocolate, cheese and energy drin