Political duties revived: Trump reinstates tariffs; identifies new targets
In a move that has shaken up global trade, President Donald Trump announced new tariffs on more than a dozen countries, with the deadline set for August 7. The tariffs, which range from 10% to 15%, are based on the U.S.'s trade balance with each country, and some nations face even higher rates depending on prior announcements or trade agreements.
The tariffs come as part of a broader trade conflict that has seen escalating tariffs between the U.S. and China earlier in the year, with baseline U.S. tariffs peaking at 145% on Chinese goods. This trade war has led to concerns from U.S. business leaders about rising consumer prices and shortages.
Mexico, in particular, secured a 90-day extension at the last minute, while the deadline for any other country has not been extended except for Mexico. The tariffs imposed by the U.S. generated an impressive $27bn (£20.4bn) in June.
The impact on various countries has been mixed but generally disruptive to global trade. Countries facing higher tariffs have experienced increased costs for U.S. imports and retaliatory tariffs, while some nations with a trade surplus with the U.S. are subject to the lower 10% tariff rate.
The uncertainty and tariff escalations have created volatility in international trade relations, affecting industries including steel, aluminum, automobiles, and technology sectors worldwide.
In an attempt to negotiate, major trading partners like Canada have been stirred up by the deadline. The UK, EU, Japan, South Korea, Indonesia, the Philippines, and Vietnam have framework deals with the U.S. for tariffs of 10%, 15%, 19%, 19%, 20%, respectively. The president stated that the EU agreement is "the biggest of all the deals."
However, the enforcement of the "Liberation Day" tariffs has been paused pending appeal, and the legality of the approach is under siege. In fact, the US Court of International Trade has ruled that the "Liberation Day" tariffs exceed the president's authority.
Despite the legal challenges, the White House has claimed some significant deals during this period. The deadline has been delayed twice, from April to July and from July to August, with the third tariff deadline set by Donald Trump being "Liberation Day" III. The framework of a deal exists between the U.S. and China, but talks are continuing.
The "playbook" for these tariffs remains the same - threaten with trade chaos, whittle it down, celebrate the wins, and pray no one checks what's legal. The tariffs have forced deals onto the table due to the deadline set by Trump, but the future of global trade remains uncertain as these negotiations continue.
- The new tariffs announced by President Donald Trump are set to impact various industries, including steel, aluminum, automobiles, and technology sectors worldwide, due to the ongoing trade war.
- While some countries, like Mexico, have secured an extension for the tariff deadline, others are subject to tariffs ranging from 10% to 15%, which may lead to increased costs for U.S. imports and retaliatory tariffs.
- Despite the controversies surrounding the legality of the tariffs, the White House has managed to secure some significant deals during this period, with the future of global trade remaining uncertain as these negotiations continue.
