Trump sends out tariff letters to 6 more countries but he avoids major US trade partners
None of the countries targeted in the first batch of letters — the Philippines, Brunei, Moldova, Algeria, Libya and Iraq — is a major industrial rival to the United States. It's a sign that a president who has openly expressed his love for the word 'tariff' is still infatuated with the idea that taxing trade will create prosperity for America.
Most economic analyses say the tariffs will worsen inflationary pressures and subtract from economic growth, but Trump has used the taxes as a way to assert the diplomatic and financial power of the U.S. on both rivals and allies.
Officials for the European Union, a major trade partner and source of Trump's ire on trade, said Tuesday that they are not expecting to receive a letter from Trump listing tariff rates. The Republican president started the process of announcing tariff rates on Monday by hitting two major U.S. trading partners, Japan and South Korea, with import taxes of 25%.
According to Trump's letters, imports from Libya, Iraq and Algeria would be taxed at 30%, those from Moldova and Brunei at 25% and those from the Philippines at 20%. The tariffs would start Aug. 1.
The Census Bureau reported that last year U.S. ran a trade imbalance on goods of $1.4 billion with Algeria, $5.9 billion with Iraq, $900 million with Libya, $4.9 billion with the Philippines, $111 million with Brunei and $85 million with Moldova. The imbalance represents the difference between what the U.S. exported to those countries and what it imported.
Taken together, the trade imbalances with those six countries are essentially a rounding error in a U.S. economy with a gross domestic product of $30 trillion.
Monday Mornings
The latest local business news and a lookahead to the coming week.
The letters were posted on Truth Social after the expiration of a 90-day negotiating period with a baseline levy of 10%. Trump is giving countries more time to negotiate with his Aug. 1 deadline, but he has insisted there will be no extensions for the countries that receive letters.
Maros Sefcovic, the EU's chief trade negotiator, told EU lawmakers in Strasbourg, France, on Wednesday that the EU had been spared the increased tariffs contained in the letters sent by Trump and that an extension of talks until Aug. 1 would provide 'additional space to reach a satisfactory conclusion.'
Trump on April 2 proposed a 20% tariff for EU goods and then threatened to raise that to 50% after negotiations did not move as fast as he would have liked, only to return to the 10% baseline.
___
Associated Press writer David McHugh in Frankfurt, Germany, contributed to this report.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Winnipeg Free Press
an hour ago
- Winnipeg Free Press
Russia warns US, South Korea and Japan against forming security alliance targeting North Korea
SEOUL, South Korea (AP) — Russia's foreign minister on Saturday warned the U.S., South Korea and Japan against forming a security partnership targeting North Korea as he visited his country's ally for talks on further solidifying their booming military and other cooperation. Russian Foreign Minister Sergey Lavrov flew to North Korea's eastern Wonsan city on Friday for a meeting with his North Korean counterpart Choe Son Hui. Relations between Russia and North Korea have been flourishing in recent years, with North Korea supplying troops and ammunitions to support Russia's war against Ukraine in return for military and economic assistance. That has raised concerns among South Korea, the U.S. and others that Russia might also transfer to North Korea sensitive technologies that can increase the danger of its nuclear and missile programs. After a meeting with Choe on Saturday, Lavrov accused the U.S., South Korea and Japan of what he called their military buildups around North Korea. 'We warn against exploiting these ties to build alliances directed against anyone, including North Korea and, of course, Russia,' he told reporters, according to Russia's state Tass news agency. The U.S., South Korea and Japan have been expanding or restoring their trilateral military exercises in response to North Korea's advancing nuclear program. On Friday, the three countries held a joint air drill involving U.S. nuclear-capable bombers near the Korean Peninsula, as their top military officers met in Seoul and urged North Korea to cease all unlawful activities that threaten regional security. North Korea views major U.S.-led military drills as invasion rehearsals. It has long argued that it's forced to develop nuclear weapons to defend itself from U.S. military threats. Lavrov said Russia understands North Korea's decision to seek nuclear weapons. 'The technologies used by North Korea are the result of the work of its own scientists. We respect North Korea's aspirations and understand the reasons why it is pursuing a nuclear development,' Lavrov said. During their meeting, Choe reiterated that North Korea 'unconditionally' supports Russia's fight against Ukraine. She described ties between North Korea and Russia as 'the invincible alliance.' Lavrov said he repeated Russia's gratitude for the contribution that North Korean troops made in efforts to repel a Ukrainian incursion into Russia's Kursk border region. Wonsan city, the meeting venue, is where North Korea recently opened a mammoth beach resort that it says can accommodate nearly 20,000 people. In his comments at the start of his meeting with Choe, Lavrov said that 'I am sure that Russian tourists will be increasingly eager to come here. We will do everything we can to facilitate this, creating conditions for this, including air travel,' according to the Russian Foreign Ministry. The Wonsan-Kalma tourist zone is at the center of North Korean leader Kim Jong Un's push to boost tourism as a way to improve his country's troubled economy. But prospects for the biggest tourist complex in North Korea aren't clear, as the country appears unlikely to fully reopen its borders and embrace Western tourists anytime soon. ___ Associated Press writer Elise Morton in Athens, Greece contributed to this report.
Winnipeg Free Press
an hour ago
- Winnipeg Free Press
Bayer Leverkusen signs US midfielder Malik Tillman for club-record fee
LEVERKUSEN, Germany (AP) — Bayer Leverkusen has moved to replace Florian Wirtz by signing United States international Malik Tillman from PSV Eindhoven for a club-record fee. The 23-year-old attacking midfielder signed a contract through June 2030, the Bundesliga club said Saturday. Kicker magazine reported Leverkusen was paying PSV a fixed sum of 35 million euros ($41 million) for the player, making him the club's most expensive incoming transfer. 'We've gained another strong and very dangerous attacking player,' Leverkusen sporting director Simon Rolfes said 'He can play in both the number 10 and the number 8 positions in midfield. Malik is an absolute top signing for us.' Tillman, who was born in Nuremberg, Germany to a German mother and American father, played through Bayern Munich's youth teams after switching from Bavarian rival Greuther Fürth in 2015. He was unable to establish himself in the senior team and made just seven appearances for Bayern before joining Glasgow Rangers on loan in 2022-23. He joined PSV on loan with an option to buy the next season, before PSV activated the buy option last year. Tillman scored 16 goals and set up five more in 34 competitive games for PSV last season, helping it to the Dutch league title. Leverkusen is rebuilding this offseason amid star player Wirtz' departure for Liverpool for a Bundesliga-record fee. Thursdays Keep up to date on sports with Mike McIntyre's weekly newsletter. ___ AP soccer:
Global News
an hour ago
- Global News
Duty free shop in N.B. to close after 31 years due to drop in cross-border shoppers
After more than three decades in business, the owner of a New Brunswick duty free shop says he has no choice but to close down within the next six weeks. Ongoing political tensions between Canada and the United States, and a trade war sparked by President Donald Trump's tariffs, have meant fewer cross-border tourists and visitors. John Slipp, who runs Woodstock Duty Free Shop in Belleville, N.B., says prior to the COVID-19 pandemic, he saw upwards of 200 people in his shop on a summer day. Now, he gets about 20. 'Back in 2017, I was starting to kind of think and talk out loud about retiring in 10 years from then,' he said. 'Because of COVID and the current situation, those retirement plans are out the window. We've had to spend personal savings to in order to manage.' Story continues below advertisement At the age of 59, he says he has no choice but to find other employment once he closes up the duty free shop. Get daily National news Get the day's top news, political, economic, and current affairs headlines, delivered to your inbox once a day. Sign up for daily National newsletter Sign Up By providing your email address, you have read and agree to Global News' Terms and Conditions and Privacy Policy As a lifelong resident of the New Brunswick border town, which borders with Maine, Slipp says he could never have imagined Canadian-American relations would ever reach the point they are at now. 'Americans, interestingly enough, have more apprehension about the border … The immigration enforcement activities in the United States has created a fear for many about travelling and about the border experience,' he said. '(Meanwhile,) Canadians are angry. Canadians are reluctant to go.' 'It's catastrophic' Slipp's experience isn't isolated. According to Statistics Canada data, return trips from the U.S. by car are down 33 per cent compared to June of last year. This is having a devastating impact on sales at duty free shops, whose regulations prohibit them from making domestic sales. 'Our industry is an export only business and we rely 100 per cent on that traffic going over the border,' said Barbara Barrett, the executive director of Frontier Duty Free Association. 'So when you drive into the parking lot of a land border duty free stop, you absolutely have to exit into the United States and all of our product goes directly into the Unites States.' Story continues below advertisement 1:45 'Don't be a stranger': Maine governor trying to woo back Maritime neighbours She says duty free shops across Canada are seeing freefalling sales and some of them are having trouble keeping the lights on. A recent survey conducted by the association found a third of their stores could close if they don't receive support from the federal government. 'We've been a part of the Canadian tourism fabric for over 40 years now. When we lose them, we're not getting them back,' she said. 'That would be a tremendous shame. So that's where we're at. It's catastrophic.'
