[ad_1]
Many countries around the world face a much higher obligation to export to the US on August 7th, a potential blow to the global economy as they have not yet reached a trade deal with the Trump administration.
President Donald Trump threatened to impose new tariffs on August 1, but delayed the deadline by a week just a few hours before they were supposed to come into effect.
Some of the largest trading partners in the US have reached a contract, or at least one outline that includes the European Union, the UK and Japan. Still, these countries face far higher tariffs than they were in effect before Trump took office. And while other large trading partners, especially China and Mexico, have received an extension to continue negotiations, they will likely pay more.
Trump is intended to be an obligation to bring manufacturing back to the US while also enforcing other countries to reduce trade barriers to US exports. Trump claims foreign exporters will pay the tariffs, but so far economists have found that most are being paid by US companies. Also, as prices for imported goods such as furniture, appliances and toys rise, US inflation measurements are beginning to rise.
Countries without a deal face obligations ranging from 10% to 40%, according to Trump’s executive order signed Thursday. It includes large economies such as Canada, Taiwan and India, as well as many small countries such as South Africa, Sri Lanka, Bangladesh and even small Lesotho.
Will the deadline continue this time?
Trump’s first April 2nd release of “liberation date” threatened to impose an import tax of up to 50% on 60 countries and their economies, including the 27-nation European Union. These duties, originally scheduled for April 9th, were initially postponed twice from July 9th to August 1st.
On Wednesday, Trump told the truth social on social media platforms that “the first deadline for August is the first deadline for August. It’s strong and won’t be extended.”
As of Thursday afternoon, White House representatives, and Trump himself, had insisted that no further delays were possible.
However, when Trump signed an order Thursday night to impose new tariffs on 68 countries and the European Union, the import tax penalty began to retard seven days, allowing customs schedules to be updated. The change could welcome news to countries that have yet to reach deals with the US, but inject new uncertainty into consumers and businesses to see what will happen when.
Which countries have trade agreements?
Amidst the last minute gust of contract production, Trump announced the agreement later Thursday, but they are largely lacking in detail.
On Thursday, the US and Pakistan reached a trade agreement that is expected to allow Washington to help lower tariffs in large part of Pakistan’s untapped oil reserves and South Asian countries.
And on Wednesday, Trump announced his deal with South Korea. This would result in a 15% tariff on goods from that country. That’s below the 25% obligation Trump threatened in April.
We also reached agreements with the European Union, Pakistan, Indonesia, Vietnam, the Philippines and the UK. The Philippines contract narrowly reduced the duties paid from 20% to 19%.
Steel is synonymous with construction, but it may surprise you with the number of everyday items that rely on metals. There are five things that could be more expensive due to steel and aluminum tariffs.
And which country isn’t?
Along with the EU that appears in Trump’s executive order, most of the 68 countries have no trade. This includes Algeria, which is currently facing 30% tariffs. 35% Iraq. Syria costs 41%, Switzerland costs 39%, and Taiwan costs 20%.
Trump had already slapped big duties in Brazil and India, even before the August deadline was reached. In Brazil, Trump signed an executive order late Wednesday, imposing a 50% obligation on imports, but exempts several large categories, including aircraft, aluminum and energy products. Trump is pissed with the Brazilian government as he indicts former President Jia Bolsonaro for trying to overturn election losses in 2022. Trump was charged with similar charges in 2023.
Trump has tried to justify widespread tariffs as an effort to combat America’s chronic trade obstacles, but the US actually has a trade surplus with Brazil.
Late Wednesday, Trump said he would pay a 25% liability for all exports as India continues to buy oil from Russia.
On Thursday, the White House said it extended the deadline to reach a deal with Mexico for another 90 days, citing the complexities of trade relations governed by the trade agreement that Trump reached when he renewed NAFTA in his first term.
The August 1 deadline is particularly difficult for a small country caught up in Trump’s crosshairs. Because the White House admits it cannot negotiate with all countries facing tariff threats. Lesotho, for example, is a small South African country that was hit by a 50% duty on April 2nd. On Thursday, the country faced 15% tariffs.
“We have 200 countries,” the president admitted earlier this month. “You can’t talk to all of them.”
___
AP writers Josh Boak and Wyatte Grantham-Philipps contributed to this report.
[ad_2]Source link
