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Higher US tariffs take effect on dozens of economies

Higher US tariffs came into effect for dozens of economies Thursday, drastically raising the stakes in President Donald Trump’s wide-ranging efforts to reshape global trade.As an executive order signed last week by Trump took effect, US duties rose from 10 percent to levels between 15 percent and 41 percent for a list of trading partners.Many products from economies including the European Union, Japan and South Korea now face a 15-percent tariff, even with deals struck with Washington to avert steeper threatened levies.But others like India face a 25-percent duty — to be doubled in three weeks — while Syria, Myanmar and Laos face staggering levels at either 40 percent or 41 percent.Taking to his Truth Social platform just after midnight, Trump posted: “IT’S MIDNIGHT!!! BILLIONS OF DOLLARS IN TARIFFS ARE NOW FLOWING INTO THE UNITED STATES OF AMERICA!”The latest tariff wave of “reciprocal” duties, aimed at addressing trade practices Washington deems unfair, broadens the measures Trump has imposed since returning to the presidency.But these higher tariffs do not apply to sector-specific imports that are separately targeted, such as steel, autos, pharmaceuticals and chips. Trump said Wednesday he planned a 100-percent tariff on semiconductors — though Taipei said chipmaking giant TSMC would be exempt as it has US factories. Even so, companies and industry groups warn that the new levies will severely hurt smaller American businesses. Economists caution that they could fuel inflation and weigh on growth in the longer haul.While some experts argue that the effects on prices will be one-off, others believe the jury is still out.With the dust settling on countries’ tariff levels, at least for now, Georgetown University professor Marc Busch expects US businesses to pass along more of the bill to consumers.An earlier 90-day pause in these higher “reciprocal” tariffs gave importers time to stock up, he said.But although the wait-and-see strategy led businesses to absorb more of the tariff burden initially, inventories are depleting and it is unlikely they will do this indefinitely, he told AFP.”With back-to-school shopping just weeks away, this will matter politically,” said Busch, an international trade policy expert.- Devil in the details -The tariff order taking effect Thursday also leaves lingering questions for partners that have negotiated deals with Trump recently.Tokyo and Washington, for example, appear at odds over key details of their tariffs pact, such as when lower levies on Japanese cars will take place.Washington has yet to provide a date for reduced auto tariffs to take effect for Japan, the EU and South Korea. Generally, US auto imports now face a 25-percent duty under a sector-specific order.A White House official told AFP that Japan’s 15-percent tariff stacks atop of existing duties, despite Tokyo’s expectations of some concessions.Meanwhile, the EU continues to seek a carveout from tariffs for its key wine industry.In a recent industry letter addressed to Trump, the US Wine Trade Alliance and others urged the sector’s exclusion from tariffs, saying: “Wine sales account for up to 60 percent of gross margins of full-service restaurants.”- New fronts -Trump is also not letting up in his trade wars.He opened a new front Wednesday by doubling planned duties on Indian goods to 50 percent, citing New Delhi’s continued purchase of Russian oil. But the additional 25-percent duty would take effect in three weeks.Trump’s order for added India duties also threatened penalties on other countries that “directly or indirectly” import Russian oil, a key revenue source for Moscow’s war in Ukraine.Existing exemptions still apply, with pharmaceuticals and smartphones excluded for now.And Trump has separately targeted Brazil over the trial of his right-wing ally, former president Jair Bolsonaro, who is accused of planning a coup.US tariffs on various Brazilian goods surged from 10 percent to 50 percent Wednesday, but broad exemptions including for orange juice and civil aircraft are seen as softening the blow.Still, key products like Brazilian coffee, beef and sugar are hit.Many of Trump’s sweeping tariffs face legal challenges over his use of emergency economic powers, with the cases likely to ultimately reach the US Supreme Court.

Sony hikes profit forecasts after strong quarter for games

PlayStation-maker Sony raised its annual profit forecasts on Thursday, citing strong performance in its key gaming business and a smaller-than-expected negative impact of US trade tariffs.The Japanese electronics and entertainment conglomerate said “user engagement continued its strong momentum” in the video game sector.Its shares surged more than six percent in Tokyo after the announcement.Monthly active …

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Sudan says army destroys Emirati aircraft, killing 40 mercenaries

Sudan’s air force has destroyed an Emirati aircraft carrying Colombian mercenaries as it landed at a paramilitary-controlled airport in Darfur, killing at least 40 people, the army-aligned state TV said Wednesday.A military source, speaking to AFP on condition of anonymity, said the UAE plane “was bombed and completely destroyed” at Darfur’s Nyala airport.The airport has recently come under repeated air strikes by the Sudanese army, at war with the paramilitary Rapid Support Forces (RSF) since April 2023.There was no immediate comment from the RSF or from the United Arab Emirates.Colombia’s President Gustavo Petro said his government was trying to find out how many Colombians died in the attack. “We will see if we can bring their bodies back,” he wrote on social media platform X.State TV said the aircraft had taken off from an airbase in the Gulf, carrying dozens of foreign fighters and military equipment intended for the RSF, which controls nearly all of Darfur.The army, led by Abdel Fattah al-Burhan, has long accused the UAE of supplying advanced weaponry, including drones, to the RSF via Nyala airport.Abu Dhabi has denied the accusations, despite numerous reports from UN experts, US political officials and international organisations.Satellite images released by Yale University’s Humanitarian Research Lab have shown multiple Chinese-made long-range drones at the airport of the South Darfur state capital.In June, three witnesses told AFP that a cargo plane was bombed shortly after landing at Nyala airport.On Monday, Sudan’s army-aligned government accused the UAE of recruiting and funding Colombian mercenaries to fight for the RSF, claiming it has documents proving that.Reports of Colombian fighters in Darfur date back to late 2024 and have been confirmed by UN experts.This week, the Joint Forces — a pro-army coalition in the vast western region of Darfur — reported over 80 Colombian mercenaries fighting on the RSF’s side in El-Fasher, the last Darfur state capital still under army control.Several were reportedly killed in drone and artillery operations during the RSF’s latest offensive, the coalition said.The army also released video footage it said was of “foreign mercenaries believed to be from Colombia”.AFP was not able to verify the videos.In December, Sudan said Colombia’s foreign ministry had expressed regret “for the participation of some of its citizens in the war”.Colombian mercenaries, many former soldiers and guerrillas, have appeared in other global conflicts and were previously hired by the UAE for operations in Yemen and the Gulf.In his post Wednesday, Petro said he was moving to ban mercenary activity, calling it “a trade in men turned into commodities to kill.”Sudan’s war, now in its third year, has killed tens of thousands, displaced 13 million and plunged the nation into the world’s worst hunger and displacement crisis.